Foreign-owned developers based in Australia will be allowed to apply for exemptions from new land tax and stamp duty surcharges under changes proposed by the state government after lobbying by the property industry.

But the government is being accused of bowing to pressure from the industry to deliver developers tax breaks worth tens of millions of dollars a year.

In the June budget Treasurer Dominic Perrottet announced the existing stamp duty surcharge for foreign property investors would be doubled to 8 per cent and the land tax surcharge lifted from 0.75 per cent to 2 per cent as a revenue raising measure.

The budget papers explained foreign-owned developers based in Australia will be eligible for a refund if they sell their new homes or apartments to the public within five years.