Foreign Investment Review Board Rules for Property Buyers

Foreign persons buying Australian residential property need approval from the Foreign Investment Review Board (FIRB) before contracts become binding. The rules are set under the Foreign Acquisitions and Takeovers Act 1975 and have changed several times in recent years, including a significant tightening in 2025.

This guide covers who needs FIRB approval, what kinds of property foreign buyers can acquire, what the application costs, how long it takes and how the rules interact with state-based foreign-buyer surcharges.

Anyone affected by these rules should also engage an Australian solicitor or registered migration agent familiar with FIRB matters. This article gives the framework, not personalised advice.

Who Is a Foreign Person Under FIRB

The Foreign Acquisitions and Takeovers Act 1975 defines a foreign person broadly. The category includes:

• An individual who is not ordinarily resident in Australia
• An Australian temporary resident (people in Australia on most visa subclasses, including 482, 485, 500 and similar)
• A foreign corporation, or an Australian corporation in which a foreign person holds a substantial interest (typically 20% or more)
• A trust in which a foreign person holds a substantial interest
• The government of a foreign country

Some categories have their own application track and rules. This guide focuses on individual foreign persons buying residential property.

Who Does Not Need FIRB Approval

The following groups do not require FIRB approval for residential property purchases:

• Australian citizens (anywhere in the world)
• Australian permanent residents
• New Zealand citizens (under the Trans-Tasman arrangement)
• Spouses of an Australian citizen, permanent resident or New Zealand citizen buying as joint tenants (not tenants in common) with the eligible partner
• Foreign persons buying within an off-the-plan development that holds an exemption certificate (more on this below)

Permanent residency is established by the visa subclass. Temporary visa holders (including 482 work visa, 500 student visa, 485 graduate visa) are foreign persons under FIRB rules even if they are physically resident in Australia.

What Foreign Buyers Can and Cannot Buy

Since 1 April 2025 the rules have tightened materially. The current framework is:

Property Type	Can Foreign Buyers Acquire	Notes
New dwellings (off-the-plan, new builds)	Yes, with FIRB approval	Including apartments, townhouses, house and land packages
Vacant residential land	Yes, with FIRB approval	Must build within 4 years; cannot leave undeveloped
Established dwellings	No (ban until 30 June 2029)	See exceptions below
Redevelopment of established dwellings	Yes, with conditions	Requires demolition and net increase in housing supply
Commercial property	Yes, with FIRB approval where thresholds met	Different thresholds apply

The ban on foreign purchases of established dwellings commenced on 1 April 2025 as a temporary measure with an original end date of 31 March 2027. In the 2026-27 Federal Budget the Government extended the ban by a further 2 years and 3 months, to 30 June 2029. Until that date, foreign persons (including temporary residents and foreign-owned companies) cannot buy an established dwelling in Australia unless one of the limited exceptions below applies.

Limited exceptions to the established-dwelling ban exist for:

• Purchases for redevelopment that will significantly increase Australia's housing stock by at least 20 additional dwellings (this includes but is not limited to Build to Rent developments)
• Purchases that support the availability of housing on a commercial scale, such as existing Build to Rent developments that continue to operate as Build to Rent, retirement villages, aged care facilities and student accommodation
• Foreign-controlled companies employing workers from Pacific island countries and Timor-Leste (including under the Pacific Australia Labour Mobility (PALM) scheme) buying established dwellings to house those workers

The previous exception allowing temporary residents to buy one established dwelling as a principal place of residence was removed when the ban commenced on 1 April 2025. It has not been reinstated.

Buyers in these limited exception categories should obtain advice from a solicitor familiar with FIRB before signing any contract.

How FIRB Approval Works

FIRB approval is required before the contract becomes binding. In practice this means one of two paths.

Path 1. Apply for approval before signing the contract. This is the cleaner approach for buyers who have already identified their target property type and price range. The approval is property-specific or can be sought on a general (no-property-identified) basis.

Path 2. Sign a contract conditional on FIRB approval. The contract includes a special condition that the contract is subject to FIRB approval. If approval is not granted, the contract terminates and the deposit is refunded. This is the more common approach when the buyer wants to make an offer on a specific property without waiting.

Applications are lodged online through the Australian Taxation Office (ATO), which administers the FIRB system on behalf of the Treasurer. The application includes:

• Personal details and identification
• Visa status (where applicable)
• Details of the proposed acquisition (property type, location, price)
• Funding source
• Application fee payment

FIRB Application Fees

Application fees are tiered by property value. Fees were increased materially from 1 April 2025 (established-dwelling fees were tripled) and indexed again on 1 July 2025. Current fees for the 2025-26 financial year for individual residential applications (notifiable actions) are:

Property Value	New Dwelling or Vacant Land Fee	Established Dwelling Fee (where exception applies)
$75,000 or less	$4,500	$13,500
Over $75,000 to $1M	$15,100	$45,300
Over $1M to $2M	$30,300	$90,900
Over $2M to $3M	$60,600	$181,800
Over $3M to $4M	$90,900	$272,700
Over $4M to $5M	$121,200	$363,600
Over $5M	Higher tiers apply in $1M steps	Higher tiers apply in $1M steps

Fees are indexed annually on 1 July. Verify current fees at the ATO FIRB pages before lodgement.

These fees are non-refundable and are payable per application. A buyer who applies, is refused and re-applies on a different property pays the fee twice.

How Long FIRB Approval Takes

Standard FIRB applications have a statutory decision period of 30 days, with a possible 90-day extension at the Treasurer's discretion. The Treasurer can also issue an interim order extending the decision period.

In practice, straightforward residential applications for new dwellings or vacant land are often decided within 10 to 30 days. Applications involving more complex factors (high-risk source-of-funds, sanctioned jurisdictions, larger transactions) take longer.

Buyers should plan a 30-day FIRB window into their contract timeline. Settlement schedules of less than 30 days from contract are not workable for FIRB-conditional purchases.

State Foreign-Buyer Surcharges

FIRB approval is the federal layer. Each state and territory also imposes a foreign-buyer stamp duty surcharge on residential property purchases. Some also impose annual land tax surcharges.

Surcharges vary significantly by state and change at state budgets. Indicative ranges as at the 2025-26 financial year:

State	Foreign Buyer Duty Surcharge	Foreign Owner Land Tax Surcharge
NSW	9%	5%
VIC	8%	4%
QLD	8%	3%
WA	7%	Nil
SA	7%	Nil
TAS	8%	2% (residential; principal residence excluded)
ACT	Nil (general rate)	0.75%
NT	Nil	Nil

The surcharges sit on top of standard stamp duty. Combined acquisition costs for a foreign buyer are materially higher than for a domestic buyer.

Surcharge rates and thresholds change at each state budget. Verify current rates against each state revenue office before contract. Figures above are current as at June 2026 (financial year 2025-26).

The AgentBridge state-by-state stamp duty guides cover surcharges in detail.

FIRB Conditions That Apply After Approval

FIRB approvals come with conditions. Common conditions include:

• For vacant land: development must commence within 4 years. Failure to do so can trigger a disposal order.
• For new dwellings: the dwelling must be a newly constructed property, not a substantially renovated established dwelling marketed as new.
• For temporary residents holding legacy approvals for established dwellings (granted before the 1 April 2025 ban): the property must be sold within 6 months of the buyer ceasing to be a resident. This pathway is closed to new purchases while the ban runs.
• Reporting: foreign buyers must report ongoing compliance to the ATO through the Foreign Ownership of Residential Land Register.

Breach of FIRB conditions can result in civil penalties (substantial), criminal penalties (including imprisonment for serious breaches) and forced disposal of the property. The ATO actively monitors compliance and has substantially increased enforcement since 2023.

The Practical Timeline for a Foreign Buyer

A typical residential purchase by a foreign buyer runs as follows.

Stage 1: pre-search. Engage an Australian solicitor familiar with FIRB. Confirm eligibility (foreign-person status, eligible property types). Begin gathering source-of-funds documentation.

Stage 2: search. Work with a buyers agent licensed to buy on behalf of foreign clients. Focus on new dwellings, off-the-plan and vacant land (given the established-dwelling ban). The AgentBridge network includes buyers agents who specialise in foreign-buyer engagements.

Stage 3: offer. Make an offer subject to FIRB approval. Sign the contract.

Stage 4: FIRB application. Lodge the application with the ATO within the contract timeline. Allow 30 days for the decision.

Stage 5: approval and settlement. Receive FIRB approval (or refusal). If approved, proceed to settlement under standard conveyancing. If refused, the contract terminates and the deposit is refunded under the FIRB condition.

Stage 6: post-settlement compliance. Register on the Foreign Ownership of Residential Land Register. Comply with any development or disposal conditions.

Off-the-Plan Exemption Certificates

Developers can apply for an "exemption certificate" from FIRB that allows them to sell a limited number of dwellings in a development to foreign persons without each buyer applying individually. This is a common approach for off-the-plan apartment developments.

Exemption certificates have a cap (typically 50% of dwellings in the development) and the developer pays a fee per dwelling sold to a foreign buyer. The fee is normally factored into the contract price for the foreign buyer.

Buyers purchasing from a developer holding an exemption certificate do not need to lodge their own FIRB application. The developer's certificate covers the transaction. The buyer still pays state-based foreign-buyer surcharges.

Frequently Asked Questions

Do I need FIRB approval as an Australian citizen living overseas

No. Australian citizens do not require FIRB approval regardless of where they live. Citizenship is the relevant test, not residency.

Do I need FIRB approval on a partner visa (subclass 820 or 309)

Generally yes, until permanent residency is granted. Temporary partner visa holders are foreign persons under FIRB rules. However, where the foreign-person partner is buying jointly with an Australian citizen or permanent resident spouse as joint tenants (not tenants in common), no FIRB approval is required. Confirm the specific structure with a solicitor before contract.

Can I buy an established dwelling as a temporary resident

No. The ban on foreign purchases of established dwellings applies to temporary residents and runs until 30 June 2029. The previous exception that allowed a temporary resident to buy one established dwelling as a principal place of residence was removed when the ban commenced on 1 April 2025. The remaining exceptions (large-scale redevelopment, commercial-scale housing and PALM employer housing) are commercial pathways and do not cover an individual buying a home to live in. Temporary residents can still buy new dwellings, off-the-plan property and vacant land with FIRB approval. Confirm your position with a solicitor familiar with FIRB before contract.

What happens if I buy without FIRB approval

Buying without required FIRB approval is a federal offence. Penalties can include civil fines (substantial), criminal penalties (including imprisonment for serious or repeated breaches) and forced disposal of the property by the Treasurer. The ATO has substantially increased monitoring and enforcement since 2023.

Does FIRB approval take longer for buyers from certain countries

In theory the process is country-neutral. In practice, applications involving sanctioned jurisdictions, complex corporate structures or sensitive sectors take longer due to additional source-of-funds and security checks. Standard applications from low-risk jurisdictions are typically decided in 10 to 30 days.

Related Resources

• A Step-by-Step Guide to Buying Your First Home in Australia
• Conveyancing in Australia. What Happens Between Contract and Settlement

About AgentBridge

AgentBridge is a property distribution business that connects sellers and developers with a national network of more than 80 buyers agents across every Australian state and territory. The panel includes buyers agents experienced in foreign-buyer engagements and the FIRB approval process for new dwellings, vacant land and off-the-plan acquisitions. AgentBridge does not provide financial product, legal or migration advice. Engage an Australian solicitor familiar with FIRB before contract.

Last reviewed: 22 May 2026.