What Are FIRB Fees? Complete Guide to Foreign Property Investment Costs (2025)

Last updated: 25 December 2024 • 9 min read

If you're a foreign investor looking to buy Australian property, there's one cost you'll encounter before anything else: the FIRB application fee. This mandatory government charge often comes as a surprise—especially when you discover it starts at $15,100 and increases with your property's value.

But what exactly are you paying for? How do these fees work? And more importantly, how can you avoid costly mistakes that could result in penalties reaching into the millions?

This guide breaks down everything you need to know about FIRB fees in 2025, with clear examples and practical advice for foreign property buyers.

Understanding FIRB: The Gatekeeper of Foreign Investment

The Foreign Investment Review Board (FIRB) is Australia's regulatory body that screens foreign investment to ensure it aligns with the national interest. For residential property, this means virtually every foreign purchase requires government approval before you can proceed.

FIRB fees fund the administration of this approval system. When you submit an application, you're paying for the government to assess your eligibility, verify your identity and status, and issue a legal certificate that allows you to purchase Australian property.

Think of it as a mandatory screening fee—there's no way around it, and it must be paid upfront before your application is even processed.

Four Things Every Foreign Buyer Must Know

1. These fees are mandatory and non-negotiable
If you need FIRB approval (which nearly all foreign buyers do), you must pay the fee. There are no exemptions based on your home country, investment size, or financial situation.

2. Fees are non-refundable
Once paid, you won't get the money back—even if FIRB rejects your application, you withdraw it, or the property purchase falls through. This makes careful planning essential before applying.

3. The fee is based on property value, not your deposit
A common misconception is that fees relate to how much you're borrowing or your equity. They don't. The fee tier is determined purely by the property's purchase price.

4. You need approval BEFORE signing contracts
Many foreign buyers don't realize FIRB approval should be obtained before—or made conditional within—your purchase contract. Buying first and applying later puts you at serious legal and financial risk.

FIRB Fee Structure: What You'll Actually Pay

FIRB fees follow a tiered system that increases as property values rise. The current fee schedule (effective July 1, 2025 through June 30, 2026) works like this:

Residential Property Application Fees

Property Purchase Price	FIRB Application Fee
Up to $1 million	$15,100
$1 million - $2 million	$30,300
$2 million - $3 million	$45,500
$3 million - $4 million	$60,600
$4 million - $5 million	$75,800
$5 million - $6 million	$91,000
$6 million - $7 million	$106,200
$7 million - $8 million	$121,400
$8 million - $9 million	$136,600
$9 million - $10 million	$151,800
Over $10 million	Add $15,100 for each additional $1 million (or part thereof)

These fees apply to single dwelling applications. Different structures apply for multiple dwellings, commercial property, or large-scale residential developments.

Real-World Examples

Scenario 1: First-time buyer in Sydney
Property price: $850,000 (apartment)
FIRB fee: $15,100
This represents about 1.8% of the purchase price.

Scenario 2: Established investor in Melbourne
Property price: $1.5 million (house)
FIRB fee: $30,300
This represents about 2% of the purchase price.

Scenario 3: Premium property in Brisbane
Property price: $3.2 million (luxury apartment)
FIRB fee: $60,600
This represents about 1.9% of the purchase price.

Notice that while the absolute dollar amount increases significantly, as a percentage of property value, the fee remains relatively consistent at around 1.5-2% for properties under $10 million.

When FIRB Fees Apply (And When They Don't)

Understanding when you need FIRB approval—and therefore need to pay fees—is crucial for budget planning.

You MUST Pay FIRB Fees For:

New residential dwellings: Newly constructed properties that have never been lived in, or substantially renovated properties (with development approval), typically require FIRB approval.

Vacant residential land: If you're planning to build, vacant land purchases require approval and fees.

Off-the-plan purchases: Buying apartments or houses before completion requires FIRB approval upfront.

Established dwellings (temporary residents only, and with major restrictions): Temporary residents on certain visa types may apply to purchase one established property as their primary residence, but this comes with strict conditions including a requirement to sell upon leaving Australia.

Critical Update: Temporary Ban (2025-2027)

Important: From April 1, 2025, through March 31, 2027, the Australian government has implemented a temporary prohibition on foreign persons (including temporary residents) purchasing established dwellings. During this period, FIRB applications for established properties will generally not be approved.

This means your FIRB application options are currently limited to new dwellings, vacant land, or new house-and-land packages. Don't waste your $15,100+ application fee on an established property application during this ban period—it will almost certainly be rejected, and the fee won't be refunded.

You May Not Need FIRB Approval For:

Australian citizens and permanent residents don't need FIRB approval for residential property purchases, regardless of whether they're currently living in Australia or abroad.

New Zealand citizens holding a Special Category Visa (subclass 444) are generally exempt from FIRB requirements for residential property.

Fee Indexation: Planning for Annual Increases

FIRB fees are indexed annually on July 1st each year, usually increasing by 3-4% in line with inflation. What this means practically:

If you're planning to buy in the first half of the financial year (July-December), you'll pay the newly indexed rates. If you're buying in the second half (January-June), rates will remain stable until the next July.

For budget planning, add a 3-5% buffer if your purchase timeline might extend into the next financial year. On a $1 million property, this could mean the difference between paying $15,100 and $15,600+.

The Hidden Costs: Beyond the FIRB Fee

While FIRB fees are significant, they're actually just one piece of your total investment cost. Here's what else you need to budget for as a foreign buyer:

State Transfer Taxes (Stamp Duty)

This is typically your largest upfront cost after the deposit. Every Australian state charges stamp duty on property transfers, and most states add substantial foreign buyer surcharges:

• Victoria: 8% foreign purchaser additional duty (FPAD)
• New South Wales: 8% foreign purchaser surcharge duty
• Queensland: 7% foreign acquirer duty
• South Australia: 7% foreign purchaser additional duty

On a $1 million property in NSW, you'd pay approximately $40,000 in standard stamp duty plus $80,000 in foreign buyer surcharge—totaling $120,000 in transfer taxes alone.

Combined with your $15,100 FIRB fee, that's $135,100 in government charges before you even own the property.

Annual Land Tax Surcharges

Most states also impose annual land tax surcharges on foreign-owned investment properties:

• Victoria: 2% absentee owner surcharge (plus standard land tax)
• NSW: 4% surcharge (2% in 2025, increasing to 4% in 2026)
• Queensland: 2% absentee owner surcharge

These apply every year you own the property. On a $1 million property with a $400,000 land value, Victoria's 2% surcharge alone would cost you $8,000 annually, on top of regular land tax.

Professional and Transaction Costs

Don't forget these essential expenses:

• Conveyancing and legal fees: $1,500-$3,000 for handling the legal transfer
• Building and pest inspections: $400-$800 (essential for established properties if permitted)
• Loan application fees: $600-$1,200 if financing through an Australian bank
• Lenders Mortgage Insurance (LMI): Potentially $10,000-$30,000+ depending on your deposit size
• Property management setup: $500-$1,000 in initial fees if renting out

Ongoing Investment Costs

Once you own the property, budget for:

• Property management fees: 7-9% of rental income plus leasing fees
• Council rates: $1,200-$3,000+ annually depending on location
• Strata fees (apartments): $3,000-$8,000+ annually
• Insurance: $1,000-$2,500 annually
• Maintenance and repairs: Budget 1% of property value annually

What Happens If You Don't Get FIRB Approval?

Some foreign buyers mistakenly think FIRB approval is optional or can be done after purchase. This is extremely risky and can result in severe consequences.

The Compliance Framework

Australia takes foreign investment compliance seriously. The Foreign Acquisitions and Takeovers Act 1975 provides the Australian Taxation Office (ATO) with significant enforcement powers.

Penalties for Non-Compliance

Breaching FIRB requirements can result in:

Civil penalties:

• Individuals: Up to $6,660,000 (30,000 penalty units at $222 each)
• Corporations: Up to $66,600,000 (300,000 penalty units at $222 each)

Criminal penalties:

• Imprisonment for up to 10 years for serious breaches
• Criminal fines on top of civil penalties

Forced divestment orders:

• You may be legally required to sell the property
• Often forced to sell quickly at below-market value
• All profits from the sale can be forfeited to the government
• You still lose your initial FIRB fee plus all transaction costs

Real-World Enforcement

The ATO actively monitors property purchases and cross-references them against FIRB approval records. Common triggers for investigation include:

• Foreign names or addresses on property titles
• Properties purchased by foreign-registered companies
• Cash purchases by buyers without Australian tax file numbers
• Tips from conveyancers, banks, or real estate agents

Don't risk it. The penalty for a $1 million unapproved purchase could theoretically exceed the property's value itself.

FIRB Processing Times: How Long to Expect

Standard FIRB residential applications typically take 30 days to process, though this is a statutory guideline rather than a guarantee. In practice:

• Simple applications (new dwelling, straightforward buyer structure): Often approved within 14-21 days
• Complex applications (corporate structures, multiple applicants, established property exceptions): Can take 30-45 days or longer
• Applications requiring additional information: Can extend significantly beyond 30 days

Tips for Faster Processing

Apply early: Don't wait until you've found a property. Many buyers obtain "in principle" approval before starting their property search.

Ensure complete documentation: Missing information is the most common cause of delays. Submit all required identity documents, visa details, and purchase information upfront.

Use the online portal: FIRB now has an online application system that's faster than paper applications and allows you to track progress.

Be responsive: If FIRB requests additional information, respond immediately. Every day of delay in your response adds days to the overall timeline.

Maximizing Your Investment: Strategic Considerations

Once you understand the fee structure, you can make smarter investment decisions.

Consider Property Value Threshold Effects

Notice that fees jump by $15,100 at each $1 million threshold. If you're considering properties near these boundaries, there may be strategic advantages:

A $995,000 property costs $15,100 in FIRB fees
A $1,005,000 property costs $30,300 in FIRB fees

That $10,000 increase in purchase price results in a $15,200 increase in FIRB fees—effectively making the marginal cost 252% of the price difference.

Sometimes finding a property just below a threshold can save significant fees without compromising on your investment goals.

Factor in Total Foreign Buyer Costs

When evaluating returns, always calculate based on your true all-in cost including foreign surcharges:

Example: $800,000 Queensland apartment

• Purchase price: $800,000
• FIRB fee: $15,100
• Standard stamp duty: ~$27,000
• Foreign acquirer duty (7%): $56,000
• Legal fees: $2,500
• True initial investment: $900,600

Your rental yield and capital growth need to be calculated against $900,600, not $800,000. This significantly impacts your actual return on investment.

Plan Your Exit Strategy

Remember that when you sell, you'll face capital gains tax of 32.5% (or your marginal rate) on the profit, with no 50% CGT discount available to foreign residents.

You'll also need to obtain a clearance certificate before settlement, and 12.5% of the sale price will be withheld by the buyer's conveyancer and sent to the ATO to cover potential tax liabilities.

Factor these exit costs into your investment projections from day one.

Using Technology to Calculate Your Costs

Manually calculating all these costs across different states, property types, and price points is complex and error-prone. Small mistakes in your budgeting can throw off your entire investment strategy.

Our FIRB Cost Calculator provides instant, accurate estimates tailored to your specific situation. Simply enter:

• Property purchase price
• State/territory location
• Property type (new dwelling, vacant land, etc.)
• Your residency status

The calculator immediately shows:

• Exact FIRB application fee for your property value
• Complete stamp duty breakdown including foreign surcharges
• Estimated annual land tax including absentee surcharges
• Professional fee ranges
• 10-year cost projections
• Cash flow analysis with rental income
• Net investment return calculations

This takes the guesswork out of budgeting and helps you compare opportunities across different states and price points.

Calculate your FIRB fees and total investment costs →

FIRB Fee Checklist for Foreign Buyers

Before submitting your FIRB application:

✅ Verify the current fee tier for your property value
✅ Confirm your property type is eligible (especially during the 2025-2027 established property ban)
✅ Check you have 30+ days before needing approval (or make your contract conditional)
✅ Prepare all required identity and visa documentation
✅ Budget for the fee as a non-refundable expense
✅ Calculate total investment cost including all foreign surcharges
✅ Consider engaging an FIRB specialist if your situation is complex
✅ Set up your Australian bank account for fee payment
✅ Understand the approval conditions and compliance requirements
✅ Plan for annual re-certification if required for your visa type

Final Thoughts

FIRB fees represent a significant but unavoidable cost of foreign property investment in Australia. At $15,100 minimum (and substantially more for higher-value properties), they must be built into your investment budget from the beginning.

But don't let the fee alone discourage you. When evaluated as part of your overall investment strategy, FIRB fees typically represent 1.5-2% of your property value—significant, but not the largest cost you'll face. Foreign buyer stamp duty surcharges and ongoing land tax surcharges usually dwarf the one-time FIRB fee.

The key to success is comprehensive planning. Understand the full cost picture, ensure you're applying for an eligible property type (especially given the current temporary ban on established dwellings), budget conservatively, and use accurate calculation tools to model your investment returns.

Thousands of foreign investors successfully navigate the FIRB process every year and build profitable Australian property portfolios. With proper preparation and realistic expectations about costs, there's no reason you can't be one of them.

Disclaimer: This guide provides general information only and should not be considered financial or legal advice. FIRB fees, regulations, and requirements are subject to change. Always consult with qualified professionals including immigration lawyers, tax advisors, and licensed conveyancers before making property investment decisions. Fees stated are based on the latest available guidance and are subject to annual indexation.