Key Takeaways
- Kate Griffiths, a UK‑trained midwife, moved to Whyalla in 2024 on a temporary 482 “Skills in Demand” visa sponsored by SA Health, with the assurance that permanent residency (PR) would be processed quickly.
- PR was granted after 15 months, exceeding the 12‑month grace period that South Australia provides to avoid a foreign‑investment surcharge on property purchases.
- Because she bought a home in Whyalla in 2025 before obtaining PR, she was charged a $28,000 state stamp‑duty surcharge and a $44,000 Australian Taxation Office (ATO) “established dwelling investment fee.”
- Griffiths said she was unaware of these penalties; had she known, she likely would not have purchased the house.
- The state government later agreed to an ex‑gratia refund of the stamp‑duty surcharge, citing the unique circumstances of her recruitment to fill a midwife shortage.
- The ATO refused to waive or remit its fee, stating that waivers are only granted in very limited cases and that the charge aligns with national foreign‑investment legislation.
- The financial burden has forced the couple to dip into savings, borrow for essentials, and postponement of the husband’s electrical‑licence accreditation.
- Local health officials and a federal MP have highlighted the case as discouraging for overseas allied‑health professionals considering work in regional South Australia.
- Griffiths continues to pursue the ATO for a fee waiver while awaiting the state refund, stressing that recruitment policies should not penalise the very workers they seek to attract.
Background and Relocation
Kate Griffiths migrated from the United Kingdom to Australia in early 2024, motivated by a call to help re‑open Whyalla Hospital’s birthing unit amid a statewide midwife shortage. She arrived under a sponsorship arrangement with SA Health, which facilitated her entry on a temporary visa. The move represented a significant personal upheaval: she and her husband Mark sold their Liverpool home, left behind established networks, and Mark relinquished his business to accompany her. Griffiths began working in the hospital’s birthing unit in October 2024, quickly becoming part of the frontline maternity care team.
Promise of Permanent Residency
SA Health informed Griffiths that her temporary 482 “Skills in Demand” visa would be a stepping stone to permanent residency, promising to expedite the necessary paperwork. The health agency assured her that the PR application would be processed swiftly, aligning with their goal of retaining recruited staff. Griffiths relied on this assurance when making long‑term decisions, including the purchase of a family home, believing that her residency status would be secured within a reasonable timeframe.
Home Purchase and Legal Timing
In 2025, after selling their UK property, Griffiths and her husband purchased a house in Whyalla, intending to settle permanently. Under South Australian law, migrants who acquire residential property must obtain permanent residency within 12 months of the purchase to avoid a foreign‑investment surcharge. Because Griffiths’ PR was not granted until 15 months after her arrival—well beyond the 12‑month window—she fell outside the legislated grace period.
State Foreign Investment Surcharge
The oversight triggered a $28,000 additional stamp‑duty levy imposed by RevenueSA, the state’s revenue authority. This surcharge is designed to deter foreign investors from buying Australian residential property without committing to long‑term residency. Griffiths received notice of the charge after the purchase, learning that her delayed PR status had made her liable for the fee despite her intent to remain in the country indefinitely.
Federal Established Dwelling Investment Fee
Compounding the state charge, the Australian Taxation Office assessed a $44,000 “established dwelling investment fee” on the same property. The ATO treats such fees as applicable to foreign nationals who buy established dwellings while on temporary visas, unless specific exemptions apply. Griffiths stated that neither she nor her husband had been informed of this potential liability during the home‑buying process, leaving them unprepared for the substantial combined cost.
Lack of Prior Awareness
Griffiths emphasized that the financial penalties came as a complete surprise. She explained that, had she been aware of the stamp‑duty surcharge and the ATO fee at the time of purchase, she likely would have opted to rent or delayed buying until her PR was finalized. The lack of clear communication from both state and federal agencies, as well as from her sponsoring employer, contributed to the couple’s feeling of being blindsided by the costs.
Impact on Family Finances
The $72,000 total in penalties forced the Griffiths to draw heavily on their savings, including a portion of Kate’s grandmother’s inheritance. They reported having to borrow money simply to cover basic household essentials. Mark Griffiths’ plan to obtain an electrical‑licence accreditation—costing roughly $10,000—has been postponed because the funds are being diverted to meet the tax obligations. The couple expressed anxiety about potentially having to return to the United Kingdom if the financial strain continued.
Response from SA Health and Government
SA Health acknowledged the delays in processing Griffiths’ PR application, with a staff member apologising and attributing the holdup to administrative bottlenecks. Flinders and Upper North Local Health Network chief executive Craig Packard affirmed that the agency had strongly supported Griffiths and that her visa application had been processed through the appropriate Designated Area Migration Agreement channels. Packard directed further inquiries about processing times to the relevant immigration authority.
State Refund Offer
Initially, RevenueSA told Griffiths there were “no grounds for a refund” of the foreign‑ownership surcharge. After media inquiry, SA Treasurer Tom Koutsantonis announced that the state would make an ex‑gratia payment of the $28,000 surcharge, citing the “unique circumstances” of her recruitment to address a critical midwife shortage. Koutsantonis noted that South Australia is the only state offering a 12‑month grace period with the possibility of a refund for those who gain residency within that window, and he expressed gratitude for Griffiths’ service to the Whyalla community.
ATO Position and Refusal
The ATO responded to Griffiths’ fee‑waiver request with a letter stating that, while waivers can be considered on a case‑by‑case basis, her application was denied because waiving the fee would “not be within the national interest.” The letter emphasized that the established dwelling investment fee is imposed under legislation governing foreign investment and that very limited circumstances justify a remission. Griffiths said she was disappointed by the inflexible stance, arguing that her situation—being recruited to fill a essential workforce gap—should merit special consideration.
Broader Implications for Regional Health Workforce
Federal Liberal MP Tom Venning, who has advocated for the Griffiths family, warned that the case sends a damaging message to overseas allied‑health professionals contemplating work in regional South Australia. He argued that penalising recruits who fill vital staffing gaps undermines efforts to attract and retain talent in underserved areas. The Australian Nursing and Midwifery Federation SA secretary, Elizabeth Dabars, described the state’s midwife sector as “fragile,” citing frequent closures and restarts of birthing services in towns such as Crystal Brook, Jamestown, and Kapunda. Dabars stressed that reliance on overseas recruitment cannot be a sustainable solution without supportive policies that facilitate smooth transition to permanent residency.
Current Status and Advocacy Efforts
As of the latest update, Griffiths is awaiting the processing of the state‑government refund of the stamp‑duty surcharge while continuing to press the ATO for a waiver or remission of the $44,000 established dwelling fee. She remains employed at Whyalla Hospital’s birthing unit and hopes that a favourable resolution will alleviate the financial pressure on her family. Griffiths reiterated that recruitment initiatives should not penalise the very workers they aim to attract, calling for clearer communication and more flexible policy applications for healthcare professionals filling critical regional shortages.