FIRB Rules for Property Buyers 2026-27

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. They tightened in 2024, when established-dwelling fees were tripled, and again in 2025, when the ban on foreign purchases of established dwellings began.

This guide covers who needs FIRB approval, what foreign buyers can and cannot buy, the 2026-27 application fees, how long approval takes and how FIRB sits alongside state 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
• 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 a new dwelling from a developer that holds an exemption certificate covering the sale (see below)

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

What Foreign Buyers Can and Cannot Buy

The Ban on Established Dwellings

The ban on foreign purchases of established dwellings began on 1 April 2025, for an initial 2 years to 31 March 2027. In the 2026-27 Federal Budget on 12 May 2026, the Government announced it will extend the ban by 2 years and 3 months, to 30 June 2029. The ban is applied as Government policy through the FIRB approval process, and FIRB's residential land guidance now describes it as running from 1 April 2025 to 30 June 2029.

While the ban applies, foreign persons (including temporary residents and foreign-owned companies) cannot buy an established dwelling in Australia unless one of the limited exceptions applies. The exceptions cover:

• Purchases for redevelopment that will significantly increase Australia's housing stock by at least 20 additional dwellings (including, but not limited to, Build to Rent developments)
• Purchases that support 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 earlier exception allowing a temporary resident to buy one established dwelling as a principal place of residence ended when the ban began on 1 April 2025. It has not been reinstated.

Buyers in these exception categories should get 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 already know their target property type and price range. Approval can be sought for a specific property or on a general (no-property-identified) basis.

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

Residential applications are lodged online through the Australian Taxation Office (ATO), which administers residential foreign investment 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 for 2026-27

Fees are tiered by the price paid and are indexed every 1 July. Established-dwelling fees have been three times the standard residential fee since 9 April 2024. These are the fees for individual residential applications in the 2026-27 financial year, from FIRB's Schedule of Fees (version 8, 1 July 2026):

Worked example. A temporary resident buying a new $850,000 apartment pays a $15,600 application fee, because the price falls in the $75,000 to $1M band. If the same buyer paid $1,200,000 for a new townhouse, the fee would be $31,300.

Fees are non-refundable and payable per application. A buyer who applies, is refused and re-applies on a different property pays the fee twice. Check the current schedule at foreigninvestment.gov.au before lodging.

How Long FIRB Approval Takes

Standard FIRB applications have a statutory decision period of 30 days. The decision period can be extended, including by the Treasurer issuing an interim order.

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

Plan a 30-day FIRB window into the contract timeline. A settlement of less than 30 days from contract is not workable for a FIRB-conditional purchase.

State Foreign-Buyer Surcharges

FIRB approval is the federal layer. Six states also charge a foreign-buyer duty surcharge on residential property, and some charge an annual land tax surcharge.

The surcharges sit on top of standard stamp duty. On a $750,000 home in NSW, for example, a foreign buyer pays $27,937 standard duty plus a $67,500 surcharge (9% of $750,000), or $95,437 in total.

Surcharge rates change at state budgets. Check each state revenue office before contract. The AgentBridge state stamp duty guides cover each state in detail.

FIRB Conditions That Apply After Approval

FIRB approvals come with conditions. Common conditions include:

• For vacant land: development must start within 4 years. Failure can trigger a disposal order.
• For new dwellings: the dwelling must be newly built, not a substantially renovated established dwelling marketed as new.
• For temporary residents holding older approvals for established dwellings (granted before the ban began on 1 April 2025): the property must be sold within 6 months of the buyer ceasing to be a temporary resident, or of the property ceasing to be their principal place of residence. This pathway is closed to new purchases while the ban runs.
• Reporting: foreign owners must keep their details up to date with the ATO through the Register of Foreign Ownership of Australian Assets.

A foreign owner who leaves a dwelling vacant for more than 6 months in a year may also owe an annual vacancy fee.

Breach of FIRB conditions can lead to civil penalties, criminal penalties (including imprisonment for serious breaches) and forced sale of the property. The ATO actively monitors compliance.

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 foreign-person status and the property types you can buy. Start gathering source-of-funds documents.

Stage 2: search. Focus on new dwellings, off-the-plan and vacant land, given the established-dwelling ban. Some buyers agents specialise in working with foreign buyers.

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. If approved, proceed to settlement. If refused, the contract ends and the deposit is refunded under the FIRB condition.

Stage 6: after settlement. Meet the register and reporting obligations, and any development or disposal conditions.

Off-the-Plan Exemption Certificates

Developers can apply for a new dwelling exemption certificate that lets them sell dwellings in a development to foreign persons without each buyer applying separately. This is common for off-the-plan apartment projects.

The developer pays a fee for each dwelling sold to a foreign buyer, and that cost may be reflected in the price. A buyer purchasing under the developer's certificate does not lodge their own FIRB application, but still pays any state foreign-buyer surcharge.

Frequently Asked Questions

Do I need FIRB approval as an Australian citizen living overseas?

No. Australian citizens do not need FIRB approval wherever they live. Citizenship is the 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. Where the foreign-person partner buys jointly with an Australian citizen or permanent resident spouse as joint tenants (not tenants in common), no FIRB approval is needed. Confirm the 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. It began on 1 April 2025, and the Government announced in the 2026-27 Budget that it will extend it to 30 June 2029. 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.

How much is the FIRB fee on a $900,000 new apartment in 2026-27?

$15,600. The fee for a new dwelling or vacant land is $15,600 for any price from $75,000 up to $1M.

What happens if I buy without FIRB approval?

Buying without required FIRB approval is an offence. Penalties can include civil fines, criminal penalties (including imprisonment for serious or repeated breaches) and a forced sale ordered by the Treasurer.

Does FIRB approval take longer for buyers from certain countries?

The process is country-neutral in principle. In practice, applications involving sanctioned jurisdictions, complex corporate structures or sensitive sectors take longer because of extra source-of-funds and security checks. Standard applications 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 gets your property in front of the people who represent serious buyers. One brief, matched to the right agents from 80+ across Australia.

AgentBridge does not provide financial product, legal or migration advice. Engage an Australian solicitor familiar with FIRB before contract.

Previous editions: Foreign Investment Review Board Rules for Property Buyers (2025-26 rules)