Deal terms

FIRB Requirements for Property Buyers in Australia

4 February 2026 6 min read Bold acquisition desk

The Foreign Investment Review Board (FIRB) administers Australia's foreign investment framework on behalf of the Treasurer. For property buyers who are not Australian citizens, permanent residents, or otherwise outside the foreign-person definition, FIRB approval is generally required before acquiring an interest in Australian real estate, and that captures most commercial property and most residential property.

Two regimes bite at the same transaction. FIRB is the federal gate. State foreign purchaser surcharges sit alongside it, are administered separately, and both catch foreign-linked buyers. The combined cost stack can shift the total acquisition by 5 to 10% of purchase price for commercial property, and substantially more for residential.

Who Is a Foreign Person?

Under the Foreign Acquisitions and Takeovers Act 1975 (FATA) and the Foreign Acquisitions and Takeovers Regulation 2015, a foreign person is broadly one of the following:

An individual who is not an Australian citizen and not ordinarily resident in Australia.
A corporation in which a foreign person (or foreign government or associated entities) holds a substantial interest (20% or more of the issued shares).
A trust where a foreign person (or persons together) holds a substantial interest in the trust (20% or more of the income or property).
A foreign government investor (sovereign wealth funds and similar).

Permanent residents are generally treated as not foreign for residential investment, though the commercial rules vary by transaction type. New Zealand citizens sit under specific rules set by the Closer Economic Relations agreement.

1 When FIRB Approval Is Required

Residential property

A foreign person generally needs FIRB approval before buying residential property in Australia, and the approval usually limits them to new dwellings (off-the-plan or never previously occupied) or vacant residential land for development. Established dwellings are off the table except in a narrow set of approved cases, such as a temporary resident buying a principal place of residence, and only for the duration of their residency.

Commercial property

Foreign persons acquiring commercial property need FIRB approval once the dutiable value exceeds the relevant threshold. That threshold moves with two things: the buyer's country, since Chile, China, Japan, Korea, New Zealand, Singapore, Thailand, and the United States receive preferential treatment under specific FTAs, and the type of investor, private versus foreign government.

Agricultural land

Agricultural land carries its own thresholds, generally lower than commercial property. Separate rules apply to water entitlements and to agricultural land held by foreign government investors.

Vacant land

Vacant land for commercial or residential development generally requires FIRB approval regardless of value.

2 Application Process

Form and timing

Applications are lodged online through the FIRB online portal. The standard statutory decision period is 30 days, with a possible 90-day extension. Simpler applications clear faster in practice; complex ones can take longer.

Information required

An application needs:

Applicant details (foreign person identity, structure, ultimate beneficial ownership).
Property details (address, type, intended use).
Acquisition details (price, finance, intended completion date).
Supporting documents (passport, company structure, tax residency).

Fees

FIRB application fees are indexed and updated periodically, scale with the property value, and are published on the FIRB website. On residential acquisitions they can be substantial, from low five figures to mid six figures depending on the price band. On commercial acquisitions they are typically lower in proportional terms but still material.

3 Approval Conditions

Approval usually comes with conditions attached. For vacant land, the common one is a development obligation: a requirement to commence and complete construction within a stated period, typically 4 years. Others limit how the property may be used, for example residential versus commercial, or impose reporting obligations, meaning periodic updates to FIRB on development progress, use, or changes in beneficial ownership. Some approvals also carry hold or disposal conditions governing how long the property must be held or how it must be disposed of in certain scenarios.

Non-compliance with conditions can result in divestment orders and civil penalties.

4 State Foreign Purchaser Surcharges

Most Australian states impose a Foreign Purchaser Additional Duty (FPAD) on top of standard transfer duty when a foreign-linked buyer acquires residential property. How far it reaches into commercial property varies by state.

NSW

NSW imposes Surcharge Purchaser Duty on residential property acquired by foreign persons, at a rate set by the state budget and updated periodically. It also imposes Surcharge Land Tax on residential property held by foreign persons.

Victoria

Victoria imposes Foreign Purchaser Additional Duty on residential property. Its Absentee Owner Surcharge reaches wider, applying to all taxable land held by absentee owners, commercial property included.

Queensland

Queensland imposes Additional Foreign Acquirer Duty (AFAD) on residential property acquired by foreign acquirers. The Absentee Surcharge applies to land tax on residential property; the commercial rules are state-administered.

WA, SA, ACT, Tasmania, NT

Each state and territory runs its own foreign purchaser regime, with scope and rates that differ from one to the next. The relevant state revenue office is the source of current rates.

5 Practical Buyer-Side Considerations

FIRB application as a contract condition

If the buyer is a foreign person, the contract of sale should be made subject to FIRB approval. A vendor accepts that condition because the contract is unenforceable against the buyer if approval is refused. Leave the condition out and the buyer carries the risk of a contract that cannot be enforced.

Beneficial ownership disclosure

Trusts, companies, and partnerships with foreign-linked beneficial owners trigger FIRB. The buyer-side review has to identify the ultimate beneficial owners and settle the question of FIRB applicability before the contract is signed.

Stamp duty surcharge

Foreign purchaser surcharges add materially to stamp duty on residential acquisitions, typically 7% to 8% additional duty depending on the state. Commercial buyers face a lower surcharge or none at all in some states, which should be confirmed against the current state schedule.

Land tax surcharge

Recurring annual surcharges on land tax for foreign-held property add to holding costs. Modelling the full holding-cost picture before purchase is part of the buyer-side framework.

6 Common Application Pitfalls

Last-minute application

FIRB processing can run past the standard 30 days on complex applications. Lodge close to a settlement date and you risk settlement default. The application should go in immediately on contract signing.

Underestimating beneficial ownership tracing

Multi-layer corporate structures can bury foreign beneficial ownership several tiers down. The buyer-side review should trace ownership through every layer to confirm whether FIRB applies.

Forgetting state surcharges

FIRB is federal; state foreign purchaser surcharges are separate and additional. Both have to be modelled in the total cost of acquisition.

Frequently Asked Questions

Do permanent residents need FIRB approval?

Generally not for residential property. For commercial property, permanent residents are typically not foreign persons and do not need approval. New Zealand citizens have their own rules.

Does FIRB approval guarantee state foreign purchaser surcharges do not apply?

No. FIRB approval is a federal threshold. State surcharges are administered separately by state revenue offices and apply on each state's own definition of a foreign person, which can differ from the federal one.

Can I buy through an Australian-incorporated company to avoid FIRB?

An Australian-incorporated company can still be a foreign person if foreign beneficial ownership exceeds the threshold. Substance, not form, drives the FIRB determination.

What happens if I buy without FIRB approval?

Buying without the required approval contravenes the Act, and the property can be subject to a divestment order. Civil penalties also apply. Get approval before settlement.