Foreign Investment Review Board (FIRB) approval is a permit issued by the Australian Tax Office (ATO) that allows foreigners to have property investments or buy a home in Australia.
For the purpose of this article, we will be focusing on residential property investments, not commercial properties.
Am I Required to Apply for FIRB Approval?
Before a contract is signed, foreign individuals or corporations are required to apply for FIRB Approval when purchasing property in Australia.
If you are an Australian citizen or permanent resident, or a New Zealand citizen, you do not need to apply for FIRB approval.
FIRB Approval Exemption
FIRB Approval is not required if:
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- you are purchasing the property with an Australian citizen or permanent resident, or New Zealand citizen, as joint tenants and you are in a spousal relationship. This exemption does not apply between friends or other family members
- the property developer holds a FIRB exemption certificate for the new property that you would like to invest in
Limitations for foreign individuals holding temporary visa
If you are an individual who:
a. holds a temporary visa which permits you to remain in Australia for a continuous period of more than 12 months (e.g. 188 visa, 457 visa, spousal visa, etc.), or
b. if you are staying in Australia, and have applied for permanent residency, and have a bridging visa while the application is finalised,
You are allowed to buy:
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- an established property as your principal place of residence in Australia
- new properties without being subject to any conditions (note the temporary ban between April 2025 – March 2027)
- vacant residential land, but construction must be completed within 4 years from the approval date
Limitations for other foreign entities
If you are either:
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- An individual who does not ordinarily reside in Australia
- An individual who holds a visa that permits you to remain in Australia for less than 12 months period (e.g. visitor visa), or
- A corporation/trust which there are foreign individuals or corporations hold an aggregate substantial interest in the entity
You are allowed to buy vacant residential or new properties with other FIRB conditions. You are not allowed to buy established residential properties.
Where and how to get FIRB Approval?
There are two ways you can apply for FIRB Approval:
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- Create an application directly via the Australia Tax Office (ATO) website; or
- With the help of a property lawyer
The ATO charges FIRB application fees to all foreign investors and temporary visa holders, and the application fee is calculated based on the property value (contract price).
The FIRB Application fee tiers increase every $1 million of the contract price. It can rise up to a maximum of $1,205,200 for the acquisition of property interest of more than $40 million.
Note: in the event your application is not successful, the application fee is not refundable to you.
Visit the FIRB website for more details on application fees for all types of real estate and business investments.
Choose W Legal Group to help with your application
At W Legal Group, we have assisted our clients to apply for FIRB approval with successful returns. If you would like to apply for FIRB approval, contact our property lawyers at hello@wlegalgroup.com.au to make an appointment. We are more than happy to discuss further with you.
