2021 FIRB (Foreign Investment Review Board) Approval Information for Overseas Buyers
Since December 2015, under the rules of the Foreign Investment Review Board (FIRB), overseas investors wishing to buy residential land or property in Australia must submit an application in advance and pay the relevant approval application fee. They may only purchase the land or property once FIRB approval has been granted.
From 1 January 2021, the Foreign Investment Review Board (FIRB) introduced a new fee schedule for approvals. The table below sets out the details of the new fee schedule:
The details of the latest 2021 government FIRB fee schedule are as follows:
Who is considered an overseas person?
Under the definitions in Australia's foreign acquisitions and takeovers legislation, an overseas person means:
- A natural person who is not an Australian citizen and does not hold an Australian permanent residency visa (commonly known as an Australian green card);
- A company or trust whose shareholders do not ordinarily reside in Australia — including an Australian-registered company, a foreign company, a foreign trust, or a company or trust in which a foreign government holds a substantial interest;
- An Australian-registered company or trust in which two or more shareholders do not ordinarily reside in Australia, or a company or trust in which a foreign company or foreign government holds an aggregate substantial interest;
- A foreign government;
- Any other person or any other party meeting the conditions set out in the regulations.
The following persons or companies are exempt from an FIRB application:
- Australian citizens;
- New Zealand citizens;
- Australian permanent residents;
- Foreign nationals who are the spouse of an Australian citizen or permanent resident and purchase the property as joint tenants;
- Developers who hold an FIRB exemption certificate;
- Inheritance under a will;
- Purchases made directly from the Australian government or a government-owned entity.
What types of residential property can foreign nationals buy?
Foreign nationals can generally obtain FIRB approval to purchase the following property or land:
- Brand-new dwellings (apartments or townhouses);
- Vacant land – construction must be completed within 4 years;
- Redevelopment of an established dwelling – at least two new dwellings must be built within 4 years on the land where an established dwelling stands, and until the new dwellings are completed the established dwelling cannot be rented out or used for any other investment purpose;
- Established dwellings – available only to overseas persons who hold a temporary visa (temporary residents), and limited to a single established dwelling to be used as their own residence while in Australia. If the property ceases to be their residence, it must be sold within 3 months.
There is generally no limit on the number of brand-new dwellings or vacant land parcels an overseas person can purchase, but approval must be obtained before each purchase.
How long does the approval process take?
Generally, FIRB approval is granted within 30 days of receiving the application materials and application fee; that is, applicants will usually be notified of whether their application has been approved within 30 days.