Information on Foreign Investment Review Board (FIRB) approval for overseas buyers (2020 updated edition)

Since December 2015, under the rules of the Australian 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. This application fee is adjusted each year on 1 July in line with the price index and other factors.

From 1 July 2020, the Foreign Investment Review Board (FIRB) introduced a new fee structure. The table below sets out the details of the new fees:

Who counts as a foreign person?

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

• A natural person 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 corporate 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 a foreign company or foreign government holds an aggregate substantial interest;

• A foreign government;

• Any other person or persons who meet the conditions specified in the regulations.

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The following persons or companies may be exempt from applying to the FIRB:

• Australian citizens;

• New Zealand citizens;

• Australian permanent residents;

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

• Developers holding an FIRB exemption certificate;

• Inheritance under a will;

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

What types of homes can foreign persons buy?

Foreign persons can generally purchase the following property or land through FIRB approval:

• 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 rebuilt on the land of an established dwelling within 4 years, 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 to live in during their stay in Australia. If the property is no longer used as their residence, it must be sold within 3 months.

There is usually no limit on the number of brand-new dwellings or vacant land parcels that overseas persons can purchase, but approval must be obtained before each purchase.

How long is the approval period?

Generally, FIRB approval is granted within 30 days of receiving the application materials and application fee; that is, applicants usually receive notice of whether approval has been granted within 30 days.

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