FIRB 2026: The Complete Guide for Foreign Buyers of Australian Property

Australia maintains one of the most clearly documented foreign investment frameworks in the world — but it changed materially in 2025, and many international buyers are working from outdated information. This guide covers the current rules as they apply to residential property, who qualifies as a foreign person under Australian law, what the 2025 established dwelling ban actually prohibits, and the pathway that remains open for new property purchases.

The rules described here are drawn from the Foreign Acquisitions and Takeovers Act 1975 (Cth), the Foreign Investment Review Board (FIRB) guidance published by Treasury, and the ATO, which has administered FIRB residential applications since 2015. Where legislative change is pending or recent, this is noted explicitly.

Who Is a "Foreign Person" Under Australian Law?

The definition of a foreign person under the Foreign Acquisitions and Takeovers Act 1975 (Cth) is broader than many buyers expect. The following categories are foreign persons for the purpose of FIRB residential property rules:

• Non-citizens — any person who is not an Australian citizen, regardless of how long they have lived in Australia or how many properties they have previously owned here
• Temporary residents — holders of any temporary visa, including work visas, student visas, and partner visas that have not yet granted permanent residency
• Foreign corporations — any company that is foreign-owned or foreign-controlled to a significant degree, including Australian-registered companies where a foreign person holds 20% or more
• Foreign trusts — trusts in which a foreign person holds a substantial interest

The following are not foreign persons and are not required to seek FIRB approval for residential purchases:

• Australian citizens — including Australian citizens who live and work overseas
• New Zealand citizens ordinarily resident in Australia
• Holders of a permanent resident visa
• Spouses of Australian citizens purchasing property jointly (specific conditions apply — the purchase must be in joint names and the foreign spouse must be an applicant on the FIRB application)

Permanent residency is the critical threshold. A buyer who has applied for permanent residency but not yet received the grant remains a foreign person and must comply with FIRB requirements until the grant is confirmed in writing.

The Established Dwelling Ban: What It Prohibits and When It Ends

From 1 April 2025, foreign persons are generally prohibited from purchasing established residential dwellings in Australia. This prohibition is legislated under the Foreign Acquisitions and Takeovers Amendment (Prohibiting Foreign Purchases of Established Dwellings) Act and operates as a moratorium until 31 March 2027, at which point it is subject to parliamentary review.

An "established dwelling" is any residential property that has been previously occupied as a dwelling — in practical terms, any secondhand house, apartment, or unit. The prohibition applies regardless of property value, location, or the buyer's country of origin.

The following are exempt from the established dwelling ban and may still be purchased by foreign persons subject to FIRB approval:

• New dwellings — properties that have never been occupied as a residential dwelling, including completed but unsold apartments and house-and-land packages
• Off-the-plan purchases — contracts signed before construction is complete, provided the dwelling has not been previously occupied
• Substantially renovated dwellings — properties where structural renovation is so substantial as to be effectively a new building (specific technical thresholds apply under the GST Act definition, and Treasury guidance should be consulted)
• Vacant residential land — land zoned residential on which no dwelling exists, purchased to construct a new dwelling
• Certain commercial purposes — property purchased by a foreign employer for accommodation of Australian-based workers (conditions apply)
• Purpose-built student accommodation — managed student housing that does not constitute a standard residential dwelling

The practical effect of the ban is that the primary market — off-the-plan apartments, new house-and-land packages, and newly completed stock — remains fully accessible to foreign buyers who obtain FIRB approval. The secondary market, where most volume occurs, is closed until at least March 2027.

The New Dwelling Pathway: What Remains Open

FIRB approval for new dwellings follows an established process and is routinely granted, subject to the property meeting the definition of a new or off-the-plan dwelling and the application being properly submitted. Foreign Investment Review Board data indicates that the large majority of residential applications are approved — rejections are rare and typically involve unusual ownership structures or properties of national significance.

Key characteristics of the new dwelling pathway:

• The purchase must be of a dwelling that has never been previously occupied as a residence
• FIRB approval must be obtained before contracts are exchanged — not at settlement, but at exchange
• The approval is specific to the property described in the application and is not transferable to a different property
• Approval is typically subject to a 12-month condition: the purchase must complete within 12 months of approval, or a new application is required
• Off-the-plan contracts can be structured with a FIRB approval condition, which is standard practice understood by most Australian property developers

Developers marketing new residential stock to international buyers routinely assist purchasers through the FIRB application process. However, the legal obligation to obtain approval rests with the buyer, not the developer. Buyers should ensure they have engaged an Australian solicitor or conveyancer experienced in foreign investment transactions before exchanging contracts.

Applying for FIRB Approval: The Process Step by Step

FIRB residential applications are submitted through the ATO's foreign investment application portal at foreigninvestment.gov.au. The process is straightforward for standard residential purchases:

1. Identify the property — applications are property-specific. You will need the full address, the contract price, and the property category (new dwelling, off-the-plan, vacant land)
2. Create an AUSid or ATO portal account — international applicants without an Australian tax file number can apply via the online portal using a foreign passport
3. Submit the application and pay the fee — the application fee is paid at the time of submission and is non-refundable regardless of outcome
4. Await the decision — the ATO has a statutory 30-day review period for residential applications. In practice, straightforward applications are often decided within 10 to 15 business days
5. Receive the approval notice — approvals are issued as a written notice specifying the approved property and any conditions attached
6. Exchange contracts — once approval is in hand, contracts may be exchanged. The approval notice should be retained as it may be required by the lender and at settlement

Foreign buyers using Australian mortgage finance should note that most lenders require a copy of the FIRB approval notice as part of the loan application. This reinforces the need to obtain approval before exchange rather than after.

FIRB Application Fees for Residential Property

Application fees are set annually by the Australian Government under the Foreign Acquisitions and Takeovers Fees Imposition Act 2015 (Cth) and are published on the FIRB website. Fees for residential property scale with the purchase price. The following indicative schedule is based on Treasury's published fee register — buyers should confirm the current schedule at foreigninvestment.gov.au before applying, as fees are reviewed each financial year.

Property Value	Indicative Application Fee
Up to $1,000,000	$14,100
$1,000,001 – $2,000,000	$28,200
$2,000,001 – $3,000,000	$56,400
$3,000,001 – $4,000,000	$84,600
Above $4,000,000	Scales at approximately $28,200 per additional million

These fees are a cost of the transaction and are typically factored into the buyer's acquisition budget alongside stamp duty and legal costs. They are not deductible against rental income in the year of purchase but may form part of the property's cost base for capital gains tax purposes — a question for a registered tax agent.

State-Level Foreign Buyer Surcharges

In addition to the FIRB application fee, most Australian states and territories impose a stamp duty surcharge on property purchases by foreign persons. These are separate from the federal FIRB process and are administered by each state's revenue office.

Surcharge rates as at mid-2026 include: New South Wales (8%), Victoria (8%), Queensland (8%), South Australia (7%), and Western Australia (no duty surcharge as at the time of writing). Annual land tax surcharges also apply in several states on an ongoing basis after purchase. These rates change, and the exact calculation varies by state — a detailed state-by-state breakdown is covered in a companion guide.

The combined effect of FIRB fees and state surcharges means that the true cost of a foreign buyer's acquisition is materially higher than the face purchase price. A $1,000,000 property in Queensland, for example, carries standard stamp duty plus an 8% surcharge — representing approximately $80,000 in additional acquisition cost on that purchase price alone, before the FIRB application fee.

Common Conditions Attached to FIRB Approvals

Most FIRB approvals for new residential dwellings are granted with standard conditions. Understanding these before purchase avoids complications during ownership or at time of resale:

• Residential use or rental requirement — some approvals specify that the property must be used as a residence or kept available for rental. Leaving a property vacant for extended periods can create compliance obligations
• No further foreign sale without approval — the approval does not transfer on resale. If the buyer subsequently sells to another foreign person, that buyer must obtain their own FIRB approval
• Notification of completion — some approvals for off-the-plan purchases require the buyer to notify the ATO when the purchase settles
• Time conditions — the approval typically specifies a period within which contracts must be exchanged or the purchase must complete. Extensions can be applied for if required

The full conditions are set out in the individual approval notice. Buyers should review these with their solicitor at the time of approval, not at settlement.

Practical Implications for International Investors in 2026

The combination of the established dwelling ban and the availability of new dwelling approvals creates a structurally different market position for foreign buyers than existed before April 2025. Foreign investors can no longer purchase the full spectrum of residential property — but the new and off-the-plan segment, which carries stronger depreciation benefits and no secondhand property restrictions, remains fully accessible.

For investors whose primary interest is in established residential markets — Sydney terraces, Melbourne apartments, Brisbane houses — the current framework requires either waiting for the moratorium to end in March 2027 (assuming it is not extended) or structuring the acquisition through specialist legal arrangements outside the scope of general guidance.

For investors focused on new developments — off-the-plan apartments, house-and-land packages, and development sites — the FIRB process is established, the timeline is manageable, and the tax treatment for new properties is structurally more favourable than for established stock. Division 40 depreciation on fixtures and appliances applies only to new or substantially renovated properties in residential rental use, and the proposed 2027 Budget reform retaining negative gearing for new builds further strengthens the tax argument for this category of purchase.

Steinhardt Property & Business works exclusively with off-the-plan and new residential developments across Australia. We assist international investors through the FIRB process as a standard part of our service and coordinate with the buyer's Australian solicitor and accountant at every stage. Our commission is paid by the developer — there is no fee charged to the buyer for our matching and advisory service.

Key Government Sources

• FIRB applications, guidance, and fee schedule — foreigninvestment.gov.au (Australian Treasury / ATO)
• Foreign Acquisitions and Takeovers Act 1975 (Cth) — legislation.gov.au
• Foreign Acquisitions and Takeovers Fees Imposition Act 2015 (Cth) — legislation.gov.au
• ATO — foreign investment in Australian real estate — ato.gov.au
• State revenue offices — revenue.nsw.gov.au, sro.vic.gov.au, qro.qld.gov.au