Living in Australia | 2023–2024 Financial Year Update: Latest Foreign Investment Review Board (FIRB) Fees

Since December 2015, under the rules of Australia's Foreign Investment Review Board (FIRB), overseas investors wishing to purchase residential land or property in Australia must submit an application in advance and pay the corresponding application fee. Only after receiving FIRB approval can they purchase the relevant land or property.

The government has announced that a new approval system has been in effect from 1 July 2023, along with updated fee rates. Purchasing a property valued at A$1,000,000 or below costs A$14,100; purchasing a property valued at A$1,000,000–A$2,000,000 (inclusive of A$2,000,000) costs A$28,200; purchasing a property valued at A$2,000,000–A$3,000,000 (inclusive of A$3,000,000) costs A$56,400. For more detailed pricing, please refer to the table below:

Who is considered an overseas person?

Under the definitions in Australia's foreign acquisitions and takeovers legislation, an overseas person means:

·         An individual who is not an Australian citizen or not a holder of an Australian permanent residency visa (commonly known as an Australian green card);

·         An Australian-registered company whose company or trust shareholders do not ordinarily reside in Australia, or a company or trust in which a foreign company, foreign trust, or foreign government holds a substantial interest;

·         An Australian-registered company or trust with two or more shareholders who do not ordinarily reside in Australia, or a company or trust in which foreign companies or foreign governments hold an aggregate substantial interest;

·         A foreign government;

·         Any other person, or any other person, meeting the conditions specified in the regulations.

The following persons or companies may be 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 who purchase property as joint tenants;

- Developers holding an FIRB exemption certificate;

- Inheritance under a will;

- Purchasing property directly from the Australian government or a government-owned entity.

What kinds of homes can foreign nationals buy?

Foreign nationals can generally, subject to FIRB approval, purchase the following properties or land:

·     - Brand-new dwellings (apartments or townhouses);

·     - Vacant land – land that increases the number of titles; construction must be completed within 4 years;

·     - Redevelopment of an established dwelling – at least two new dwellings must be rebuilt within 4 years on the land of an established dwelling, and the established dwelling cannot be rented out or used for other investment purposes before the new dwellings are completed;

·     - Established dwellings – limited to overseas persons holding a temporary visa (temporary residents), who may only purchase one established dwelling as their place of 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 may purchase, but approval must be obtained before each acquisition.

How long is the approval period?

Generally, FIRB approval is issued within 30 days of receiving the application materials and application fee; that is, applicants will usually receive notification of whether their application has been approved within 30 days.

If you have any questions about buying property in Australia as an overseas person, please leave us a message.