What are FIRB rules for Australia property buyers?

Authored by the expert who managed and guided the team behind the Australia Property Pack

Everything you need to know before buying real estate is included in our Australia Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Australia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Australian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Sydney, Melbourne, and Brisbane. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Who exactly needs FIRB approval before buying property in Australia?

FIRB approval is mandatory for foreign investors living overseas and temporary residents holding temporary or bridging visas.

Foreign investors include anyone who is not an Australian citizen, permanent resident, or New Zealand citizen. This applies to individuals, companies, and trusts controlled by foreign persons.

Temporary residents on student visas, work visas, partner visas, or bridging visas must obtain FIRB approval for each property purchase. As of September 2025, this requirement applies even if they plan to use the property as their principal residence.

Australian citizens, permanent residents, and New Zealand citizens are completely exempt from FIRB approval requirements. Joint purchases with an exempt spouse also qualify for exemption.

It's something we develop in our Australia property pack.

What types of properties can foreign buyers legally purchase under FIRB rules?

Foreign buyers can purchase new or near-new dwellings, vacant residential land, and certain commercial properties under FIRB rules.

New dwellings include off-the-plan apartments, newly constructed houses, and properties that have never been occupied or sold to another party. Near-new properties typically include those completed within the last 12 months.

Vacant residential land purchases require buyers to commence construction within 24 months and complete development according to approved plans. The land must be zoned for residential use and cannot remain undeveloped.

Commercial properties below $50 million in value may be exempt from FIRB approval, while those above this threshold require specific approval based on asset type and strategic importance.

Established dwellings are strictly prohibited for foreign investors, with rare exceptions for major redevelopment projects that substantially increase housing stock.

Are there different rules for temporary residents, permanent residents, and foreign investors?

Yes, FIRB rules vary significantly based on residency status and citizenship.

Residency Status	FIRB Approval Required	Property Purchase Rights
Foreign Investors	Yes, for all purchases	New dwellings, vacant land, commercial (restricted)
Temporary Residents	Yes, for each purchase	New dwellings, vacant land, one established dwelling for residence
Permanent Residents	No	All property types without restrictions
Australian Citizens	No	All property types without restrictions
New Zealand Citizens	No	All property types without restrictions

How much does it cost to apply for FIRB approval, and what are the exact application fees by property value?

FIRB application fees for 2025-2026 start at $15,100 for residential properties valued up to $1 million.

Fees increase by $30,300 for each additional $1 million in property value above the base threshold. For example, a $2 million property incurs a fee of $45,400 ($15,100 + $30,300).

Established dwelling applications cost three times the standard residential fee, making a $1 million established property cost $45,300 to apply for (though these are rarely approved for foreign investors).

Commercial property applications under $50 million cost $15,100, while larger commercial investments face substantially higher fees based on complexity and strategic sensitivity.

These fees are non-refundable regardless of approval outcome and are indexed annually to reflect inflation and administrative costs.

What are the rules around buying new properties versus established dwellings?

Foreign buyers can purchase new properties freely with FIRB approval but are banned from buying established dwellings.

New properties include off-the-plan developments, newly constructed homes that have never been occupied, and properties sold directly by developers before first occupation. These purchases increase Australia's housing stock and are therefore encouraged.

Established dwellings are properties that have been previously occupied or sold to another party. Foreign investors cannot purchase these properties except for major redevelopment that substantially increases housing density.

Temporary residents have limited access to one established dwelling for use as their principal residence, but cannot rent it out or use it for investment purposes.

It's something we develop in our Australia property pack.

Can foreign buyers purchase vacant land, and if so, under what conditions?

Foreign buyers can purchase vacant residential land with FIRB approval, subject to strict development conditions.

Construction must commence within 24 months of settlement, with dwelling completion typically required within 48 months. Extensions may be granted for legitimate delays beyond the buyer's control.

The developed property must be used for residential purposes and cannot be left vacant for extended periods without valid reasons. Annual vacancy fees may apply if the property remains unoccupied.

Land must be zoned for residential development, and the proposed dwelling must meet local council requirements and building standards.

Failure to commence construction within the specified timeframe can result in forced sale orders and substantial penalties.

What are the penalties for not getting FIRB approval before buying property?

Penalties for non-compliance with FIRB rules are severe and can include fines up to $3.3 million for individuals and $33 million for corporations.

The government can order forced sale of illegally purchased property, with proceeds potentially forfeited to the Commonwealth. Average fines for breaches are $250,000 for individuals and $3 million for corporations.

Criminal prosecution is possible in serious cases, carrying penalties of up to 10 years imprisonment for deliberate contraventions or systematic breaches.

Property transfers may be declared void, leaving buyers without legal ownership despite having paid for the property. Legal costs and lost deposits can compound financial losses.

The Australian Taxation Office actively monitors property transactions and cross-references them with FIRB approvals to identify violations.

How long does the FIRB approval process usually take from application to decision?

Standard FIRB approval processing takes 30 to 90 days from submission of a complete application.

Simple residential property applications for new dwellings typically process within 30-45 days if all documentation is complete and accurate. Complex applications involving commercial property or redevelopment can take 60-90 days.

Incomplete applications, missing documentation, or properties requiring additional scrutiny can extend processing times beyond 90 days. Applications involving sensitive assets or large values may undergo extended review.

Processing times may increase during peak periods or when FIRB receives high application volumes. Urgent applications are not typically expedited unless exceptional circumstances exist.

Buyers should apply for FIRB approval before signing purchase contracts to avoid settlement delays or contract breaches.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Are there restrictions on selling the property later, and do foreign buyers have to notify FIRB when selling?

Foreign buyers face ongoing obligations after purchase, including potential requirements to sell if their circumstances change.

Temporary residents must sell their established dwelling when they cease to be temporary residents or leave Australia permanently. This sale requirement does not apply to new dwellings or vacant land developments.

Properties purchased on vacant land must be developed and cannot be sold as vacant land to another foreign buyer without completing the required construction.

Foreign buyers must register their property purchases on the Foreign Ownership Register and may need to report annual vacancy status and rental arrangements.

While FIRB notification is not required for sales, buyers must comply with any conditions attached to their original approval throughout their ownership period.

Do FIRB rules apply differently to commercial property compared to residential property?

FIRB rules for commercial property are less restrictive than residential property rules, with higher value thresholds and different approval criteria.

Commercial properties below $50 million typically do not require FIRB approval, while residential properties require approval regardless of value. Agricultural land and commercial assets above $50 million need specific approval.

Commercial property purchases focus on national interest considerations rather than housing supply impacts. Strategic assets like infrastructure, telecommunications, or defense-related properties face stricter scrutiny.

Foreign investment in commercial real estate is generally encouraged as it brings capital and creates employment opportunities without affecting residential housing availability.

Processing times for commercial approvals may be longer due to additional national security and economic impact assessments required for larger transactions.

What exemptions from FIRB approval exist, and who qualifies for them?

Several categories of buyers and transactions are exempt from FIRB approval requirements.

1. Australian citizens and permanent residents: No FIRB approval required for any property purchase
2. New Zealand citizens: Complete exemption from FIRB requirements under bilateral agreements
3. Joint purchases with exempt spouses: Australian or New Zealand citizen spouses can purchase property without FIRB approval
4. Developer exemption certificates: Pre-approved new dwelling developments sold with valid exemption certificates
5. Inheritance: Property inherited through wills or court orders does not require FIRB approval
6. Small commercial properties: Commercial assets under $50 million value threshold
7. Certain corporate restructures: Internal reorganizations within existing approved structures

How can a buyer check their eligibility and start the FIRB application process step by step?

Buyers should first determine their residency status and property type before beginning the FIRB application process.

1. Verify residency status: Check if you qualify as foreign investor, temporary resident, or are exempt as permanent resident/citizen
2. Confirm property eligibility: Ensure the property type is permitted under FIRB rules for your status
3. Calculate application fees: Use the FIRB online calculator or fee schedule to determine exact costs
4. Gather required documents: Prepare passport, visa documentation, property details, and financial evidence
5. Submit online application: Complete the application through the FIRB/ATO online portal
6. Pay application fees: Non-refundable fees must be paid at the time of application submission
7. Monitor application status: Track progress through the online portal and respond to any information requests
8. Receive approval decision: Review approval conditions and ensure compliance with all requirements
9. Register property ownership: Complete Foreign Ownership Register requirements after settlement
10. Maintain ongoing compliance: Meet annual reporting requirements and any conditions attached to approval

It's something we develop in our Australia property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. FGD Law - Foreign Investment in Residential Real Estate
2. BDO Australia - Foreign Ownership Legal Requirements
3. FIRB Official Guidance Notes
4. Umbrella Accountants - Temporary Resident Property Rules
5. Ensure Legal - FIRB Guide for Foreign Investors
6. Australian Taxation Office - Property Types for Foreign Persons
7. FIRB Fees Guidance Note 2025
8. CM Law - Foreign Investment Legal Pitfalls