Information regarding approval by the Foreign Investment Review Board (FIRB) for overseas property buyers

Since December 2015, under the rules of the 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 proceed to purchase the relevant land or property. This application fee is adjusted each year on 1 July in line with the price index and other factors.

From 1 July 2018, the Foreign Investment Review Board (FIRB) introduced a new fee schedule for applications. The table below sets out the details of the new fee schedule:

Who counts as an overseas person?

Under the definitions set out 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 natural person who is not an Australian citizen or does not hold an Australian permanent residency visa (commonly known as an Australian green card);

• an Australian-registered company whose company or trust shareholders normally reside outside Australia, or a foreign company, foreign trust company, 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 who normally reside outside Australia, a foreign company or a foreign government together hold a substantial interest

• a foreign government;

• any other person or persons meeting the conditions specified in the regulations.

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The following individuals or companies are exempt from FIRB applications:

• Australian citizens;

• New Zealand citizens;

• Australian permanent residents;

• foreigners who are the spouse of an Australian citizen or permanent resident and purchase the property as joint tenants;

• developers holding a FIRB exemption certificate;

• inheritance under a will;

• purchasing directly from the Australian government or a government-owned entity.

What kinds of residential property can foreigners buy?

Foreigners can generally obtain FIRB approval to purchase the following properties or land:

• brand-new dwellings (apartments or townhouses);

• vacant land – construction must be completed within 4 years;

• redevelopment of established dwellings – at least two new dwellings must be built 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 – only for overseas persons holding a temporary visa (temporary residents), who may purchase only one established dwelling as their place of residence while in Australia. If the property is no longer used as their residence, it must be sold within 3 months.

There is generally no limit on the number of brand-new dwellings or vacant land blocks that overseas persons can buy, 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 documents and the application fee — that is, applicants will usually receive notice of whether their application has been approved within 30 days.

If you have any questions about purchasing property in Australia as an overseas person, please contact the Aobo Realty investment consultant below or call 07 3193 5918.