Foreign buyer property approval in Australia: FIRB thresholds and fees

Foreign investment approval is often described as though it depends on a single purchase-price threshold. That is not how the rules operate.

For Australian residential property, the monetary screening threshold is generally $0. A foreign person will ordinarily need approval before acquiring an interest in residential land, regardless of whether the property costs $500,000, $5 million or more.

The practical questions are therefore:

• Is the proposed buyer a “foreign person” under the legislation?
• Is the property residential, commercial, agricultural or national security land?
• Is it a new dwelling, vacant land or an established dwelling?
• Is the purchase currently permitted?
• Is an individual approval required, or does a valid exemption apply?
• Has the contract been made properly conditional on approval?
• What fees, registration requirements and continuing obligations will follow?

These questions should be resolved before a buyer signs a contract or bids at auction.

At a glance — position as at 26 September 2026.

• Residential land generally has a $0 monetary threshold.
• Foreign persons are generally prohibited from purchasing established dwellings from 1 April 2025 to 30 June 2029, subject to limited exceptions.
• Foreign buyers may generally apply to acquire new or near-new dwellings and vacant residential land for development.
• Residential applications are lodged through the Australian Taxation Office.
• Approval does not remove state or territory foreign-purchaser duty, land-tax surcharges or other tax obligations.
• Registration and annual vacancy-reporting obligations may continue after settlement.

What does “FIRB approval” mean?

“FIRB approval” is the expression commonly used by buyers, agents and conveyancers. Technically, the Foreign Investment Review Board advises the Australian Government, while decisions are made under the Foreign Acquisitions and Takeovers Act 1975 and associated regulations.

Residential real estate applications are administered through the Australian Taxation Office. Commercial, agricultural and other investment proposals may be handled through the Australian Government’s Foreign Investment Portal.

An approval may take the form of a no-objection notification or an exemption certificate. It may be unconditional or subject to conditions governing development, use, reporting, disposal or other matters.

Approval is specific to the buyer, property category, value and proposed transaction. An approval for one property or price range should not be assumed to cover another transaction.

Who is treated as a foreign person?

The statutory definition is broader than simply asking whether somebody holds an Australian passport. It may include:

• an individual who is not ordinarily resident in Australia;
• most temporary residents and foreign non-residents;
• a foreign corporation;
• an Australian corporation with the prescribed level of foreign ownership;
• the trustee of a trust with the prescribed level of foreign ownership;
• a foreign government investor; and
• certain partnerships and investment structures with foreign participation.

Whether an individual is “ordinarily resident” involves statutory tests concerning the person’s right to remain in Australia and their presence in Australia. Tax residency, visa status and foreign-investment status are related concepts but are not interchangeable.

Australian citizens and holders of Australian permanent visas do not need foreign investment approval to purchase residential property. New Zealand citizens who hold, or are eligible to hold, a special category visa are also generally exempt. A foreign spouse or qualifying de facto partner may be exempt when purchasing as joint tenants with an Australian citizen, an eligible New Zealand citizen or an Australian permanent resident. That spouse exemption does not cover ownership as tenants in common. Other exemptions can apply to acquisitions arising through wills or operation of law. The precise legal status and ownership structure must be checked.

A buyer should not assume that an exemption applies merely because:

• they live and work in Australia;
• they intend to become a permanent resident or citizen;
• their spouse or de facto partner is Australian — the exemption has specific eligibility and joint-tenancy requirements;
• the property will be their home;
• they have an Australian tax file number; or
• an estate agent or developer has said approval is unnecessary.

The buyer’s status and the proposed manner of ownership should be checked before contracting.

The residential-property threshold is $0

For a foreign person acquiring residential land, the applicable monetary threshold is generally $0 or more.

That means the purchase price does not determine whether the transaction enters the foreign-investment regime. Even a relatively inexpensive residential property may require approval.

The price remains important for calculating the application fee and determining whether an exemption certificate covers the transaction, but there is no general lower-value residential exemption.

The $0 threshold can apply to more than a conventional house or apartment. “Residential land” may include:

• vacant land on which residential premises may be built;
• a new or near-new dwelling;
• an established dwelling;
• an apartment bought off the plan;
• an interest acquired under certain long-term leases;
• options or contractual rights capable of producing an interest in land; and
• some acquisitions involving companies or trusts whose assets include Australian land.

The legal character of the interest should be assessed, not merely the label used in the marketing material.

What residential property can a foreign buyer purchase?

New and near-new dwellings. Foreign persons can generally apply for approval to purchase a new or near-new dwelling.

A new dwelling will ordinarily be one acquired from the developer that has not previously been sold as a dwelling and has not been occupied beyond the period permitted by the foreign-investment rules.

A near-new dwelling may include a dwelling that was sold by a developer but returned to the developer because an earlier contract failed to settle, provided the relevant requirements are satisfied.

Foreign buyers should not assume that a recently constructed or renovated property is legally a new dwelling. A replacement house, substantial renovation or recently completed residence may still be treated as an established dwelling if the transaction does not genuinely add to Australia’s housing stock.

Developer exemption certificates. A developer may hold a New or Near-New Dwelling Exemption Certificate covering a specified development.

Where the certificate validly covers the proposed purchase, the foreign buyer may not need to obtain a separate individual approval. The buyer should nevertheless obtain and review a copy of the certificate and confirm:

• that it applies to the particular development and dwelling;
• that the certificate remains current;
• that the purchase value falls within its limits;
• that the proposed buyer is entitled to rely on it; and
• that the developer has complied with any relevant conditions.

The presence of foreign-buyer marketing material is not evidence that the development has a valid exemption certificate.

Vacant residential land. Foreign persons can generally apply to purchase vacant residential land for development. Approval will ordinarily be conditional on:

• residential construction being completed within four years; and
• the land not being sold until construction has been completed.

Evidence of completion may also need to be provided. A purchaser who cannot realistically obtain planning approval, finance and construction within the required period should consider that risk before committing to the land. An extension or variation is not automatic and may require a further application and fee.

Established dwellings. An established dwelling is broadly an existing or previously occupied residence that does not qualify as a new or near-new dwelling.

From 1 April 2025 to 30 June 2029, foreign persons are generally prohibited from purchasing established dwellings in Australia. The prohibition applies broadly, including to temporary residents and foreign-owned companies. It replaced the former policy under which some temporary residents could obtain approval to purchase an established dwelling as their principal residence.

Limited exceptions remain. They may include particular proposals involving:

• redevelopment that genuinely increases housing stock;
• projects supporting housing availability on a commercial scale;
• housing for certain Australian-based employees;
• acquisitions arising under a specific statutory exemption; or
• another narrowly defined circumstance accepted under the legislation and government policy.

These exceptions are technical. A plan to renovate, occupy, lease or eventually redevelop an existing home does not, by itself, establish eligibility. A buyer considering an established dwelling should obtain advice before paying an application fee or entering a contract.

Key 2026 monetary thresholds for Australian land

The following is a general snapshot of thresholds applying from 1 January 2026. Thresholds can depend on the investor’s country, ownership structure, free-trade-agreement status, the nature of the land and national-security considerations.

• Residential land — all foreign investors: $0 or more.
• Vacant commercial land — all foreign investors: $0 or more.
• Developed commercial land — eligible private investors from specified FTA partners, including CPTPP countries: generally more than $1.498 billion. For Hong Kong investors, sensitive developed commercial land has a $75 million threshold.
• Developed commercial land — other private investors: generally more than $347 million; more than $75 million where the land is sensitive. For qualifying Indian investors, non-sensitive land acquired predominantly to supply services has a $560 million threshold.
• Agricultural land — most private foreign investors: more than $15 million, calculated cumulatively; qualifying Chilean, New Zealand and United States investors: more than $1.498 billion; qualifying Thai investors: more than $50 million.
• Agribusinesses — a direct interest: generally more than $75 million, calculated cumulatively.
• Mining or production tenements — generally $0; qualifying Chilean, New Zealand, Peruvian and United States investors: more than $1.498 billion; qualifying Hong Kong investors: $75 million.
• Australian media businesses — a direct interest: $0 or more.
• Australian business or entity acquisitions — for a substantial interest, eligible private investors from specified FTA partners generally have a $1.498 billion threshold for non-sensitive businesses and $347 million for sensitive businesses; other private investors generally have a $347 million threshold, with a $560 million exception for qualifying Indian investors acquiring a non-sensitive services business.
• Foreign government investors: generally $0 or more, subject to limited exceptions.
• National security land, national security businesses and relevant exploration tenements over national security land: $0 or more.

This list is illustrative, not exhaustive. Eligibility for an agreement-country threshold depends on the investor category and, for entity investors, can depend on where the immediate acquirer is formed. “Sensitive” land and businesses are defined categories, not a general description. A transaction below an ordinary monetary threshold may still be reviewable under national-security rules, and foreign government investors are subject to broader $0 thresholds. Thresholds are indexed and can change on 1 January each year, so check the current official table for the proposed acquisition.

Residential application fees for 2026–27

Foreign-investment application fees are government charges, not conveyancing fees or stamp duty.

For applications concerning new or near-new residential property and vacant residential land made between 1 July 2026 and 30 June 2027, the published fee tiers include:

• Less than $75,000 — $4,600.
• $1 million or less — $15,600.
• $2 million or less — $31,300.
• $3 million or less — $62,600.
• $4 million or less — $93,900.
• $5 million or less — $125,200.
• $6 million or less — $156,500.
• $7 million or less — $187,800.
• $8 million or less — $219,100.

Higher-value transactions continue through further indexed tiers. Applications involving established dwellings attract substantially higher fees and are now relevant only where the proposed purchase falls within an available exception to the general prohibition.

Worked example — a $900,000 new dwelling has a $0 residential screening threshold, meaning approval is generally required if the buyer is a foreign person and no exemption applies. The separate 2026–27 application-fee table places that purchase in the $1 million-or-less tier, so the fee is $15,600 where no other exemption or developer certificate applies.

The fee can also be affected by:

• the number of titles or interests being acquired;
• whether the buyer applies for a specific property or an exemption certificate;
• the type of land;
• whether more than one action is being proposed;
• the buyer’s proportionate interest;
• variations to an existing approval; and
• whether the application concerns retrospective approval.

Government fees are generally not refunded merely because the buyer changes their mind, misses out on the property or submits an application that was unnecessary. Fee waivers and refunds are available only in limited circumstances. The statutory assessment period does not start until the correct fee has been paid.

When should the buyer apply?

A foreign buyer should apply before acquiring the relevant interest. The safest course is usually to obtain approval before signing an unconditional contract. Where that is not commercially possible, the contract should contain a properly drafted condition making the purchase subject to foreign-investment approval.

The condition should address matters including:

• the deadline for lodging the application;
• the period allowed for a decision;
• the buyer’s obligation to provide requested information;
• whether an approval subject to adverse or unacceptable conditions is sufficient;
• termination rights if approval is refused or delayed;
• return of the deposit; and
• any interaction with finance, due-diligence or settlement conditions.

A finance condition is not a substitute for a foreign-investment condition. The government generally has a statutory 30-day decision period after a complete application and the correct fee have been received. Further time may be required where information is missing, the proposal is complex, an extension is made or the applicant agrees to additional time. A buyer should not set settlement on the assumption that approval will necessarily arrive within 30 calendar days.

Auctions require particular caution

Auction contracts are ordinarily unconditional and usually do not provide a cooling-off period. A foreign buyer should therefore obtain any required approval, or a valid exemption certificate covering the intended purchase, before bidding.

Before bidding, cross-check that any approval or exemption certificate covers the proposed buyer, the particular dwelling, the likely bid value and the auction date, and that it remains valid. The approved value must be high enough to cover the successful bid and any relevant acquisition costs included in the approval calculation. A buyer who bids beyond a certificate’s monetary limit may acquire the property without valid approval. The auction contract should also be reviewed before bidding. The possibility of seeking retrospective approval does not make an otherwise prohibited acquisition safe.

Approval conditions must be taken seriously

Foreign-investment approval is not simply a permission letter to retain on file. Conditions may require the purchaser to:

• complete residential development within a stated period;
• not sell vacant land before construction is complete;
• notify the government of settlement or completion;
• provide occupancy, leasing or development records;
• report changes in ownership or control;
• dispose of an asset in specified circumstances; or
• comply with tax, governance or national-security conditions.

The approval should be reviewed alongside the contract and settlement timetable. Responsibility for satisfying post-settlement conditions should be allocated and diarised.

Registering the acquisition

Foreign persons acquiring residential land generally need to register the interest on the Register of Foreign Ownership of Australian Assets. For a residential purchase, registration will ordinarily be required within 30 days after settlement. Further notifications may be required when:

• the property is sold;
• the owner ceases to be a foreign person;
• the nature of the interest changes;
• the property changes from residential to another land category; or
• another registrable event occurs.

Registration is separate from the initial application for approval. Receiving approval does not necessarily complete the buyer’s later registration obligations.

Annual vacancy fee returns

A foreign owner who is subject to the vacancy-fee regime generally must lodge a return for each residential dwelling within 30 days after the end of every vacancy year, even if no vacancy fee is payable. Whether a fee is payable turns on the applicable 183-day occupancy or genuine-availability test. The ATO guidance should be checked for the relevant dwelling and vacancy year rather than treating the boundary as a shorthand day-count rule.

For vacancy years beginning on or after 9 April 2024, the vacancy fee is generally double the original foreign-investment application fee paid before the dwelling was acquired. If the dwelling was bought under a new or near-new dwelling developer exemption certificate, it is generally double the application fee that would have applied without that certificate.

Owners should retain evidence such as:

• tenancy agreements;
• rental advertisements;
• property-management statements;
• utility records;
• occupancy records;
• dates of personal occupation; and
• evidence explaining any qualifying period during which the property could not be occupied.

Failure to lodge the return can lead to the owner being treated as liable for the vacancy fee regardless of the actual occupancy position.

FIRB approval is separate from state taxes

Foreign-investment approval is a Commonwealth regulatory requirement. It does not determine the buyer’s liability for state or territory taxes. Depending on the jurisdiction and the purchaser’s status, a foreign buyer may also face:

• foreign-purchaser additional duty;
• foreign-owner or absentee-owner land-tax surcharges;
• ordinary transfer duty;
• annual land tax;
• capital gains tax consequences;
• foreign-resident capital gains withholding when the property is later sold; and
• additional reporting or identity requirements.

The definitions used by a state revenue authority may differ from the Commonwealth definition of a foreign person. A buyer may be exempt under one regime but liable under another. These costs should be calculated before the buyer commits to the purchase.

What happens if the rules are breached?

Non-compliance can attract serious consequences, including:

• infringement notices;
• substantial civil penalties;
• criminal penalties in serious cases;
• conditions or enforceable undertakings;
• orders requiring disposal of the property;
• restrictions on future acquisitions; and
• additional scrutiny of later applications.

The ATO and other government agencies use land-title data, tax records, immigration information and other data-matching systems to identify unapproved acquisitions and failures to comply with conditions.

Retrospective approval may be available in some circumstances, but it is not guaranteed and does not erase the original breach. An established dwelling acquired during the prohibition period will be assessed against the policy applying when retrospective approval is considered. A person who believes a breach may have occurred should obtain advice promptly. Voluntary disclosure and early corrective action may be relevant to the regulator’s response.

Practical checklist for foreign property buyers

Before signing a contract or bidding at auction:

• Confirm whether every proposed purchaser is a foreign person.
• Check the effect of the proposed ownership structure, including joint ownership, companies and trusts.
• Classify the property correctly as new, near-new, vacant or established.
• Confirm that the property category is one the buyer is permitted to acquire.
• Obtain and verify any developer exemption certificate.
• Calculate the current government application fee.
• Check state foreign-purchaser duty and land-tax surcharges separately.
• Lodge the application early enough for the proposed transaction.
• Insert an appropriate foreign-investment condition in any contract signed before approval.
• Obtain approval before bidding at an unconditional auction.
• Review and diary every condition imposed by the approval.
• Register the acquisition after settlement.
• Establish an annual process for vacancy returns and record retention.

How we can assist

Foreign-investment issues should be identified during the pre-contract stage, not after the purchaser has become unconditionally bound. Our property lawyers can assist with:

• determining whether foreign-investment approval is likely to be required;
• reviewing the proposed purchaser and ownership structure;
• classifying the property;
• checking a developer exemption certificate;
• preparing or coordinating a residential-property application;
• drafting and negotiating a foreign-investment special condition;
• reviewing an auction contract before bidding;
• calculating state transfer-duty implications;
• completing the conveyance and PEXA settlement; and
• identifying post-settlement registration and reporting obligations.

The monetary thresholds, fees and government policies discussed in this article are current as at 26 September 2026 and can change. Whether approval or an exemption is available depends on the purchaser, ownership structure, property and proposed use. This article provides general information and is not a substitute for legal advice about a particular transaction.