Foreign owners of Australian property could soon be eligible for refunds of foreign buyer surcharges after it was revealed the imposts are inconsistent with some international tax treaties.

Revenue NSW announced this week that citizens of New Zealand, Finland, Germany and South Africa would no longer be subject to the state’s 8% surcharge purchaser duty or the 4% surcharge land tax imposed on foreign buyers of NSW property.

The ruling was made because some international tax treaties contain non-discrimination clauses that bar citizens of those countries from being subject to any taxes not imposed on an Australian resident.

Revenue NSW said refunds may be available for any buyer from New Zealand, Finland, Germany, or South Africa who paid duty or land tax surcharges on properties bought after July 1, 2021.

Pitcher Partners tax specialist Craig Whatman said it was not clear why the ruling was limited to those four countries, with similar treaties likely to apply to citizens of other nations.

“The Federal Government has entered into treaties with other countries which include a broad non-discrimination clause for tax purposes,” Mr Whatman said.

“We anticipate that as more tax treaties are reviewed, individuals and entities such as companies and trusts affiliated with other countries may also be excluded from the surcharges and entitled to refunds for past payments.”

Mr Whatman said he expected the NSW ruling would also have a national impact.

“International treaties hold similar sway over the foreign buyer surcharges that are in place across other Australian states,” Mr Whatman said.

“Victoria’s State Revenue Office has confirmed it considering the issue, but other states that have these surcharges have remained silent to date.

“Our initial view is that this issue extends across all of the states that have a foreign person surcharge regime and taxpayers who have paid a duty or land tax surcharge in another state may also be entitled to a refund.”