Imagine returning home after months away, only to find an unexpected bill waiting for you—one that could set your family back by tens of thousands of dollars.

For one Australian family, this became a reality when they were hit with a massive tax penalty due to a misunderstanding of the state's land tax rules.

What followed was a whirlwind of confusion, frustration, and financial strain.

An Australian family was blindsided by an enormous $116,000 land tax bill after returning from overseas.

James and Susan, parents of two young daughters, were shocked when they received the letter from Revenue NSW.

The tax penalty was a result of Susan’s residency status, as she hadn’t spent the required 200 continuous days in Australia due to her mother’s illness.

Family hit with a $116,000 land tax surprise. Image source: Pexel/Mikhail Nilov

Susan, a permanent resident born in Scotland, had spent over nine months in Scotland caring for her sick mother, which led to her being absent from the country for more than 270 days.

‘We certainly didn’t know anything about it. We went to care for Mum… we had no choice,’ Susan explained during an interview.

James added: ‘We don’t consider ourselves foreigners, so it’s not something we thought about, really.’

Upon their return to Sydney, just days after landing, the couple found themselves facing the hefty land tax bill.

Under NSW law, foreign buyers must pay an eight per cent surcharge on the value of their property if they do not meet certain residency requirements.

The family’s primary residence was now considered subject to this surcharge, despite not being an investment property.

‘It’s a beautiful country. We call it our home, I don’t consider ourselves foreigners,’ Susan said.

To make matters worse, Susan’s appeal to waive the tax under ‘exceptional circumstances’ was rejected by Revenue NSW.

James, who was born in Australia, was stunned by the situation.

‘I can’t think of anything worse,’ he said, referring to their predicament.

The family now faces an overwhelming financial strain, with $11,000 due each month as they try to resolve the issue.

So far, they have already paid $33,000 of the bill.

In a previous story, we explored another family's struggle with skyrocketing bills.

If you’re concerned about rising rates, their experience serves as a warning.

Be sure to read on for more insights on how this mum tackled a nightmare $1,500 rates bill.

Key Takeaways

• An Australian family received a surprise $116,000 land tax bill after returning from overseas due to a misunderstanding of residency requirements.
• Susan, a Scottish-born permanent resident, spent over 270 days in Scotland caring for her sick mother, which led to the tax penalty.
• The tax surcharge applied to their primary residence, despite it not being an investment property, because Susan did not meet the 200-day residency requirement.
• Despite an appeal to waive the bill under 'exceptional circumstances,' the family faces ongoing financial strain, already paying $33,000 of the bill and owing $11,000 per month.

With such a hefty tax penalty catching this family off guard, how would you have handled the situation? Share your thoughts in the comments below.

 

[Iggydi]

If he is born in Australia he must be an Australian citizen and she is a permanent resident why are they charging this couple such a hefty land tax bill? The NSW Government are very un-Australian. It would be different if they couldn't prove why they went to Scotland. Shame on NSW government

 

[Frida1944]

This is bureaucracy gone mad. Surely they can go to a higher body to challenge this?

 

[Still Ebby]

They should fight this ! How did they find out they had gone? l suppose they had someone looking after the place with them being away so long so that wouldn't have been a problem. This controlling people is getting out of hand. They should take it to Court they could get a Pro Bono lawyer .