How FIRB Approval Works in Australia for Foreign Buyers: Step by Step (2026)

FIRB (Foreign Investment Review Board) approval is the federal screening process that every foreign person acquiring an interest in Australian residential real estate must obtain before signing or settling the purchase, with very limited exceptions. The framework comes from the Foreign Acquisitions and Takeovers Act 1975 (FATA), the Foreign Acquisitions and Takeovers Regulation 2015, and is administered jointly by the Treasurer (via FIRB) and the Australian Taxation Office (ATO). The two-year ban on foreign buyers acquiring established (existing) dwellings, in force from April 1, 2025 to March 31, 2027, has materially narrowed what foreign buyers can do. The step-by-step process below covers what remains available in 2026.

Who counts as a foreign person under FIRB?

A foreign person under section 4 of the Foreign Acquisitions and Takeovers Act 1975 includes any individual who is not an Australian citizen and not the holder of a permanent residency visa, and any corporation or trust with a substantial interest (20 percent or more) held by a foreign person. New Zealand citizens with a Special Category Visa (subclass 444) are foreign persons for FIRB purposes unless they hold an Australian permanent visa. Temporary residents (subclass 457, 482, 500 student visa, 491, 188, partner provisional, and other temporary categories) are foreign persons, but until April 1, 2025 had more permissive established-dwelling rules that have now been removed by the two-year ban.

What residential property can foreigners currently buy in Australia?

Between April 1, 2025 and March 31, 2027, foreign persons cannot buy established (existing) residential dwellings, with very narrow exceptions including the Pacific Australia Labour Mobility (PALM) housing program and limited build-to-rent worker exemptions. Foreign buyers can still purchase new (or near-new) dwellings, vacant residential land for development, and redevelopment properties subject to conditions requiring demolition and increase in dwelling count. The ban was announced by Treasurer Jim Chalmers and Housing Minister Clare O'Neil on February 16, 2025 and implemented through the Foreign Acquisitions and Takeovers Regulation amendments.

Step 1: Confirm your status as a foreign person.

Confirm that you are a foreign person under FATA s4 by checking your Australian visa subclass and any corporate ownership structure used to acquire the property. If you hold an Australian permanent visa with the entire 12 months previously spent in Australia, you are not a foreign person for residential acquisition. If you are a temporary resident, you are a foreign person and the established-dwelling ban currently applies. Corporate buyers must confirm whether any single foreign person or aggregate of foreign persons holds 20 percent or more (substantial interest) or 40 percent aggregate.

Step 2: Identify the property category.

Identify which category your target property falls into. New dwellings include never-occupied homes purchased from a developer, and dwellings sold by a developer that have been substantially renovated and not previously occupied. Vacant residential land is land with no habitable dwelling on it. Redevelopment requires demolishing the existing dwelling and constructing at least one new dwelling within four years, with the redevelopment commitment included as a FIRB condition. Established dwellings are existing homes already occupied or sold; these are currently banned for foreign purchase under the 2025 to 2027 measure with very narrow exemptions.

Step 3: Calculate the FIRB application fee tier.

FIRB application fees are tiered by property value and indexed annually on July 1 by Treasury under the Foreign Acquisitions and Takeovers Fees Imposition Act 2015 and regulations. For new dwellings and vacant land for the 2025 to 2026 fee year, the fee tiers are approximately: AUD 14,700 for property value under AUD 1 million, AUD 29,500 for AUD 1 to 2 million, AUD 59,000 for AUD 2 to 3 million, with further increments rising by AUD 14,700 for each additional AUD 1 million bracket up to top brackets above AUD 200,000 for properties over AUD 10 million. Fees for established dwellings (where permitted by exemption) are tripled. Confirm the current fee schedule on the ATO website before applying.

Step 4: Submit the application via the ATO online portal.

FIRB applications for residential real estate are lodged through the ATO's Foreign Investment Online Portal under the Foreign Investor Registration arrangement, with the ATO administering the processing on behalf of the Treasurer. Required information includes the applicant's identity and visa documentation, the property address and category, the purchase price or estimated value, and the source of funds. The portal also requires confirmation of acceptance of standard conditions for the relevant property category.

Step 5: Pay the application fee.

Application fees must be paid in full before processing begins. Payment is made via the ATO portal by credit card, BPAY, or international bank transfer. Fees are non-refundable even if the application is denied or withdrawn, except in narrow cases such as duplicate submissions. The ATO issues a payment receipt and a case reference number that should be retained for state-level stamp duty surcharge documentation.

Step 6: Wait for the no-objection notification or conditions.

The statutory decision period is 30 days from acceptance of the application and payment, extendable by the Treasurer for an additional 90 days for complex cases. In practice, straightforward new-dwelling and vacant-land applications are processed in 10 to 30 business days. The applicant receives either a no-objection notification (with or without conditions), a denial, or a request for further information. Conditions for new dwellings are typically minimal; conditions for vacant land require commencement of construction within 4 years; redevelopment conditions require demolition and new construction within 4 years.

Step 7: Make your contract subject to FIRB approval.

Contracts of sale for foreign buyers should be made conditional on FIRB approval, either by signing the contract before FIRB approval with a standard FIRB-subject special condition, or by waiting for approval before contracting. The contract should specify a sufficient timeframe (typically 30 to 60 days from contract for FIRB) and the buyer's right to terminate with deposit return if approval is denied or comes with unacceptable conditions. State-based standard contracts in NSW, Victoria, Queensland, and Western Australia all have standard FIRB clauses available.

Step 8: Settle and pay stamp duty plus foreign surcharges.

At settlement, the buyer pays standard state stamp duty plus the Foreign Investor Duty Surcharge applicable in that state. As of 2026, NSW imposes 9 percent additional duty (Duties Act 1997 NSW), Victoria imposes 8 percent (Duties Act 2000 Vic), Queensland imposes 8 percent (Duties Act 2001 Qld), South Australia imposes 7 percent, Tasmania 8 percent, Western Australia 7 percent, ACT does not currently impose a foreign surcharge. The surcharges are paid alongside standard transfer duty at settlement to the State Revenue Office.

Step 9: Register with the Register of Foreign Ownership of Australian Assets.

Foreign buyers must register the acquisition on the Register of Foreign Ownership of Australian Assets (formerly the Land and Water Register, with the consolidated register taking effect on July 1, 2023 under the Foreign Acquisitions and Takeovers Amendment (Streamlining Foreign Investment) Act 2020). Registration is completed via the ATO portal within 30 days of settlement. Failure to register attracts civil penalties under FATA section 130D.

Step 10: Pay annual vacancy fee if applicable.

Foreign owners of residential dwellings must lodge an annual vacancy fee return regardless of whether the property was occupied, under FATA Part 6A. If the dwelling was occupied or genuinely available for rent for fewer than 183 days in the vacancy year, the vacancy fee is payable at the rate that applied to the FIRB application fee, doubled for the 2025 fee year by the Foreign Acquisitions Amendment (Build to Rent) Regulation 2025 for many residential categories. The annual return is due within 30 days of the end of the vacancy year (typically the anniversary of occupation date).

What are the penalties for non-compliance?

Penalties under FATA were significantly increased by the Foreign Investment Reform (Protecting Australia's National Security) Act 2020 and further by the 2024 amendments. Civil penalties for individuals reach 5,000 penalty units (approximately AUD 1.65 million at 2025 to 2026 unit values) or 75 percent of the property value, whichever is higher. Corporate civil penalties reach 50,000 penalty units (approximately AUD 16.5 million) or 75 percent of the property value. Criminal penalties include up to 10 years imprisonment for serious cases. The ATO actively monitors and has issued numerous divestment orders since 2015.

How do state foreign surcharges interact with FIRB?

FIRB approval is a federal precondition; state foreign-surcharge duty is a separate state revenue charge payable on top of standard stamp duty at settlement. The surcharges apply to foreign persons (under definitions that broadly mirror the federal FIRB definition but vary by state) and are payable to the State Revenue Office of the relevant state. NSW also imposes an annual land tax foreign surcharge of 5 percent of unimproved land value, Victoria 4 percent (rising to 5 percent in some scenarios), Queensland 3 percent. Each state has its own surcharge eligibility, exemption (notably for permanent residents who meet residency tests), and refund rules.

Where can I verify my obligations and current fee tiers?

Confirm current FIRB fees and process at the ATO Foreign Investment website and the Treasurer's FIRB website. Annual indexation occurs on July 1 each year, so a fee figure quoted six months ago may already be outdated. Bektu maintains transparency information on developers building qualifying new-dwelling and redevelopment projects for foreign buyers, including delivery history and project status. Always engage an Australian property lawyer experienced in foreign investment before signing any contract.