Australia — Property: Foreign Ownership

Why this matters

Relocating buyers who are not Australian citizens or permanent residents must understand this is one of the most restrictive foreign-ownership regimes among comparable countries -- established/existing homes are effectively off-limits, application fees can run into tens of thousands of dollars, and getting it wrong can mean forced divestment orders.

Key facts

• Foreign ownership of residential property is regulated under the Foreign Acquisitions and Takeovers Act 1975 and administered via FIRB, with fees and compliance handled through the ATO.
• From 1 April 2025 to 30 June 2029, foreign persons are generally banned from purchasing established (previously-owned) dwellings, unless a limited exception applies (e.g. a redevelopment adding at least 20 additional dwellings, or commercial-scale housing such as build-to-rent or student accommodation).
• Foreign buyers can generally still apply to buy new dwellings or vacant residential land for development; approval on vacant land is typically conditional on construction being completed within 4 years and the land not being on-sold until construction is complete.
• FIRB application fees are tiered by property value and indexed annually on 1 July -- e.g. the fee for a $1.5 million property is around $31,300 (2026-27 schedule); fees are substantially higher where an established-dwelling exception applies.
• The ATO requires foreign investors to register and report property acquisitions and can issue penalties, including forced disposal orders, for non-compliance.
• Agricultural land and certain other land types are subject to additional/lower FIRB screening thresholds beyond standard residential rules.

Steps

1. Step 1: Confirm the property type is eligible — Foreign persons are generally banned from buying established (existing) dwellings (1 April 2025 - 30 June 2029) unless a narrow exception applies. Confirm the target property is a new dwelling or vacant land for development, or that an exception genuinely applies -- consult a solicitor experienced in FIRB matters.
2. Step 2: Obtain FIRB Approval — Apply to the Foreign Investment Review Board before signing a contract (or make the contract conditional on FIRB approval). Application fees are tiered by property value and indexed each 1 July; processing is a statutory 30 days but can take longer in practice.
3. Step 3: Comply with Reporting and Tax Requirements — Foreign buyers must comply with FIRB conditions (e.g. construction deadlines on vacant land) and applicable state foreign purchaser stamp duty surcharges and land tax surcharges, in addition to standard property taxes.

Costs

• FIRB application fee: tiered by property value, indexed annually on 1 July -- e.g. approx. A$31,300 for a A$1.5m property in the 2026-27 schedule; substantially higher for established-dwelling exceptions
• State foreign purchaser stamp duty surcharges: additional to standard stamp duty, e.g. NSW 9%, Victoria 8%, Queensland 8% of the dutiable value (2026)
• State land tax surcharges (e.g. Victoria absentee owner surcharge): e.g. Victoria 4% surcharge on top of standard land tax for absentee owners (2026)

Timelines

• Time to obtain approval (if necessary): 2-6 months
• Time to report property holdings and pay taxes: 1-2 weeks

Required documents

• Passport or other identification
• Proof of address
• Proof of funds
• Business or company documents (if applicable)
• Approval from the Australian government (if necessary)

Common mistakes

• Failure to report property holdings and pay applicable taxes
• Inadequate or incomplete documentation
• Failure to obtain necessary approvals (if required)

AI confidence note (remove before publishing)

Based on publicly available information and general knowledge of Australian law and regulations, but may not reflect the most up-to-date or nuanced information. It is recommended to consult with a qualified professional for specific advice.