FIRB Spousal Exemption: Complete Guide to Buying Property with an Australian Partner (2026)

Last Updated: January 2026

If you're a foreign national in a relationship with an Australian citizen or permanent resident, you may have heard that buying property together can save you significant money on FIRB fees and stamp duty surcharges. This is true—and there's an even bigger advantage many people don't know about.

The FIRB spousal exemption can save you $50,000 to $150,000+ on a typical property purchase. Even more importantly, spousal purchases (as joint tenants) are exempt from the 2025-2027 ban on foreign persons buying established dwellings—making this one of the only ways foreign nationals can legally purchase existing homes during the ban period.

However, the FIRB exemption does NOT automatically exempt you from state stamp duty surcharges—and the rules differ significantly between states.

This comprehensive guide explains exactly how the spousal exemption works, what it does and doesn't cover, and how to structure your purchase to maximize savings while avoiding costly mistakes.

Quick Answer: Does the Spousal Exemption Apply to My Situation?

Scenario	FIRB Exemption?	Established Dwellings?	State Stamp Duty Surcharge Exemption?
Married to Australian citizen, buying as joint tenants	✅ Yes	✅ Yes (exempt from ban)	⚠️ State-dependent (see below)
De facto with Australian PR, buying as joint tenants	✅ Yes	✅ Yes (exempt from ban)	⚠️ State-dependent (see below)
Partner visa holder (820/309), buying with Australian spouse	✅ Yes	✅ Yes (exempt from ban)	⚠️ State-dependent (see below)
Buying as tenants in common with Australian spouse	❌ No	❌ No (ban applies)	❌ No
Buying with Australian parent/sibling/friend	❌ No	❌ No (ban applies)	❌ No
Buying investment property with Australian spouse	✅ Yes (FIRB)	✅ Yes (exempt from ban)	❌ No (most states require PPR)

The bottom line: The spousal exemption (when purchasing as joint tenants) exempts you from the Foreign Acquisitions and Takeovers Act entirely—meaning you can buy established dwellings even during the 2025-2027 ban period. However, state stamp duty surcharge exemptions are separate and have their own requirements.

---

Understanding the FIRB Spousal Exemption

What Is the FIRB Spousal Exemption?

Under Australian foreign investment law, a foreign person purchasing residential property jointly with their Australian citizen or permanent resident spouse may be exempt from requiring FIRB approval—provided specific conditions are met.

This exemption is established in FIRB Guidance Note 2 and the Foreign Acquisitions and Takeovers Act 1975.

Who Qualifies for the FIRB Exemption?

The foreign person must be purchasing with:

• An Australian citizen, OR
• An Australian permanent resident, OR
• A New Zealand citizen holding a Special Category Visa (subclass 444)

AND the relationship must be:

• A married spouse, OR
• A de facto partner (including same-sex relationships)

AND the property must be purchased as:

• Joint tenants (equal 50/50 ownership with right of survivorship)

Note on FIRB fees: For those who don't qualify for the exemption, FIRB application fees are indexed annually on July 1. As of the 2025-26 financial year, the base fee for properties up to $1 million is approximately $15,600 (fees increase with property value). Always verify current indexed rates on the ATO website. For a complete breakdown, see our guide on FIRB fees tripled in 2024.

What the FIRB Exemption Covers

✅ No FIRB application required — You don't need to submit an application or wait for approval

✅ No FIRB application fee — Save $15,600 to $1.2M+ depending on property value

✅ Applies to ALL property types — New dwellings, established dwellings, AND vacant land

✅ Applies to investment properties — Contrary to many sources, the FIRB exemption applies whether you're buying to live in or to invest (this is confirmed in FIRB Guidance Note 2)

✅ Exempt from the 2025-2027 established dwelling ban — Because spousal purchases are exempt from the Act entirely (under Regulation 38 of the Foreign Acquisitions and Takeovers Regulation 2015), the prohibition on foreign persons purchasing established dwellings does NOT apply to qualifying spousal purchases

This is a critical advantage: During the April 2025 to March 2027 period when other foreign buyers cannot purchase established dwellings, couples using the spousal exemption CAN still buy existing homes—provided they meet the joint tenants requirement.

What the FIRB Exemption Does NOT Cover

❌ State stamp duty surcharges — These are separate state taxes with their own rules. See our complete state-by-state guide to foreign buyer stamp duty surcharges for detailed information.

❌ Land tax surcharges — Foreign owner/absentee surcharges still apply in most states

---

The Critical Requirement: Joint Tenants vs Tenants in Common

This is where most couples go wrong—and it can cost you over $100,000.

Joint Tenants (Required for Exemption)

Characteristics:

• Equal ownership (always 50/50)
• Right of survivorship (if one owner dies, the other automatically inherits their share)
• Cannot be divided unequally
• Both parties must agree to sell

FIRB status: ✅ Qualifies for spousal exemption

Tenants in Common (Does NOT Qualify)

Characteristics:

• Can be unequal shares (e.g., 70/30, 99/1)
• No right of survivorship (each person's share passes to their estate)
• Can sell or will your share independently
• More flexible for estate planning

FIRB status: ❌ Does NOT qualify for exemption

Why This Distinction Matters

Many couples choose tenants in common for legitimate reasons:

• Unequal financial contributions
• Protecting assets from previous relationships
• Estate planning with children from previous marriages
• Tax or asset protection structures

However, choosing tenants in common means:

• The foreign person requires separate FIRB approval for their share
• FIRB fees apply based on the foreign person's share value
• Stamp duty surcharges apply to the foreign person's share
• All standard foreign buyer restrictions apply

Real Example: The Cost of Getting It Wrong

Scenario: Maria (UK citizen on 482 visa) and John (Australian citizen) purchase a $1,000,000 house in NSW.

Option A: Joint Tenants

• FIRB fee: $0 (exempt)
• Standard stamp duty: ~$40,000
• Foreign buyer surcharge: Depends on state rules (see below)

Option B: Tenants in Common (50/50)

• FIRB fee: ~$15,600 (on Maria's $500,000 share, 2025-26 indexed rate)
• Standard stamp duty: ~$40,000
• Foreign buyer surcharge (9% on Maria's share): $45,000
• Additional cost: $60,600+

---

State-by-State Stamp Duty Surcharge Rules

Critical Warning: The FIRB spousal exemption is a federal exemption. State stamp duty surcharges are completely separate taxes with their own eligibility rules. Being exempt from FIRB does NOT mean you're exempt from state surcharges.

For a comprehensive overview, see our complete state-by-state guide to foreign buyer stamp duty surcharges.

New South Wales: 9% Surcharge (Complex Rules)

Current surcharge rate: 9% (increased from 8% on January 1, 2025)

Is there a spousal exemption from the surcharge?

⚠️ Partial—with strict conditions

NSW does NOT provide an automatic spousal exemption from surcharge purchaser duty. However, exemptions may apply in specific circumstances:

Potential exemption pathway: "Exempt Permanent Resident" status

If the foreign spouse meets ALL of these conditions, they may be treated as an "exempt permanent resident" and avoid the surcharge:

1. Physical presence: Present in Australia for at least 200 days within the 12 months before the contract date
2. Principal place of residence: The property will be used as the purchaser's principal place of residence
3. Eligible visa status: Certain visa holders (including partner visas 309/820) may qualify

What if conditions aren't met?

If the foreign spouse doesn't qualify as an exempt permanent resident:

• The 9% surcharge applies to the foreign person's beneficial interest
• For joint tenants, this is typically calculated on 50% of the property value
• For a $1,000,000 property: $45,000 surcharge on the foreign spouse's 50% share

NSW Example Calculation:

Couple: Australian citizen + foreign spouse (482 visa, less than 200 days in Australia)
Property: $900,000 house, joint tenants, for PPR

Cost	Amount
Standard stamp duty	~$35,000
Surcharge (9% on 50% share)	$40,500
FIRB fee	$0 (exempt)
Total duty	$75,500

Compare to foreign buyer purchasing alone:

Cost	Amount
Standard stamp duty	~$35,000
Surcharge (9% on 100%)	$81,000
FIRB fee	$15,100
Total	$131,100

Savings with spousal structure: $55,600

Victoria: 8% Surcharge (PPR Exemption Available)

Current surcharge rate: 8% (Foreign Purchaser Additional Duty - FPAD)

Is there a spousal exemption from the surcharge?

✅ Yes—for principal place of residence only

Victoria provides a specific exemption from FPAD for foreign purchasers buying jointly with an Australian citizen or permanent resident, but ONLY for the purchaser's principal place of residence.

Requirements for Victorian FPAD exemption:

1. Joint purchase: With an Australian citizen, permanent resident, or New Zealand citizen who is ordinarily resident in Australia
2. Principal place of residence: Property must be used as the purchaser's PPR
3. 12-month occupancy: Must occupy the property as PPR for a continuous period of 12 months
4. Timing: Occupancy must commence within 12 months of becoming entitled to possession

What about investment properties?

❌ No exemption. If purchasing an investment property (not PPR), the 8% FPAD applies to the foreign spouse's share, even if purchasing as joint tenants with an Australian citizen.

Victoria Example Calculation:

Couple: Australian PR + foreign spouse (student visa)
Property: $850,000 apartment, joint tenants, for PPR, will occupy for 12+ months

Cost	Amount
Standard stamp duty	~$46,000
FPAD (8%)	$0 (PPR exemption)
FIRB fee	$0 (spousal exemption)
Total duty	~$46,000

If same couple purchasing as investment property:

Cost	Amount
Standard stamp duty	~$46,000
FPAD (8% on 50% share)	$34,000
FIRB fee	$0 (still exempt)
Total duty	~$80,000

Key Victorian warning: You must actually occupy the property as your PPR for 12 continuous months. If you fail to meet this condition, FPAD becomes payable retrospectively.

Queensland: 8% Surcharge (PPR Relief Available)

Current surcharge rate: 8% (Additional Foreign Acquirer Duty - AFAD)

Is there a spousal exemption from the surcharge?

✅ Yes—for principal place of residence only

Under Section 245 of the Duties Act 2001 (QLD), relief from AFAD is available for foreign persons purchasing jointly with their Australian spouse.

Requirements for Queensland AFAD relief:

1. Joint purchase: With an Australian citizen or permanent resident spouse
2. Principal place of residence: Property must be used as the purchaser's PPR
3. Application required: Relief may be waived upfront or refunded after purchase

What about investment properties?

❌ No relief. The Section 245 relief applies strictly to principal places of residence. Investment properties attract the full 8% AFAD on the foreign spouse's share.

Queensland Example Calculation (PPR):

Couple: Australian citizen + foreign spouse (482 visa)
Property: $750,000 house, joint tenants, for PPR

Cost	Amount
Standard stamp duty	~$26,000
AFAD (8%)	$0 (PPR relief)
FIRB fee	$0 (exempt)
Total duty	~$26,000

Queensland Example Calculation (Investment):

Same couple purchasing investment property

Cost	Amount
Standard stamp duty	~$26,000
AFAD (8% on 50% share)	$30,000
FIRB fee	$0 (exempt)
Total duty	~$56,000

Other States: Quick Reference

State	Surcharge Rate	Spousal Exemption Available?
South Australia	7%	⚠️ Limited—verify with RevenueSA
Western Australia	7%	⚠️ Limited—verify with WA Revenue
Tasmania	0%	N/A (surcharge abolished July 1, 2024)
Northern Territory	0%	N/A (no foreign buyer surcharge)
ACT	0%	N/A (no foreign buyer surcharge)

Tasmania update: The Tasmanian Government abolished the Foreign Investor Duty Surcharge (FIDS) for residential property effective July 1, 2024. Tasmania now joins the Northern Territory and ACT as surcharge-free jurisdictions—making it one of the most affordable states for foreign buyers.

---

The 2025-2027 Established Dwelling Ban: Spousal Purchases Are EXEMPT

What Is the Ban?

From April 1, 2025 to March 31, 2027, foreign persons (including temporary residents) are generally prohibited from purchasing established dwellings in Australia.

For complete details on the ban and its exceptions, see our complete FIRB guide 2025.

Does the Spousal Exemption Override the Ban?

Yes. This is one of the most valuable aspects of the spousal exemption.

Under Regulation 38 of the Foreign Acquisitions and Takeovers Regulation 2015, a purchase by a foreign person jointly with their Australian citizen or permanent resident spouse (as joint tenants) is exempt from the Foreign Acquisitions and Takeovers Act entirely.

Because the transaction is exempt from the Act, the prohibition on foreign persons acquiring established dwellings does not apply to qualifying spousal purchases.

What This Means for Couples

During the ban period (April 2025 – March 2027):

✅ Spousal purchases CAN include established dwellings — You can buy existing houses and apartments

✅ No restriction to new dwellings only — Unlike other foreign buyers who are limited to new/off-the-plan properties

✅ Full market access — You can compete for any property on the market

Requirements remain the same:

• Must be married or de facto partners
• Must purchase as joint tenants (not tenants in common)
• Must be purchasing with an Australian citizen, permanent resident, or eligible NZ citizen

This makes the spousal exemption even more valuable during the ban period — it's one of the only ways foreign persons can legally purchase established residential property in Australia.

---

Qualifying Relationships: Marriage and De Facto

What Counts as a Qualifying Relationship?

The FIRB spousal exemption applies to:

1. Legally married spouses — Marriage certificate required
2. De facto partners — Including same-sex relationships

De Facto Relationship Requirements

To qualify as a de facto relationship for FIRB purposes, you generally need to demonstrate:

• Genuine domestic relationship similar to marriage
• Typically 12+ months of cohabitation (though not a strict FIRB requirement)
• Evidence of relationship: Joint bank accounts, shared bills, statutory declarations, photos, etc.

State variations: Some states have specific de facto recognition requirements for stamp duty exemptions that may differ from FIRB rules. Check state-specific guidelines.

For more information on visa-specific requirements, see our temporary resident vs foreign investor FIRB visa guide.

What Does NOT Qualify

The following relationships do NOT qualify for the spousal exemption:

❌ Parent and child (even adult children)
❌ Siblings
❌ Extended family members (aunts, uncles, cousins)
❌ Friends purchasing together
❌ Business partners
❌ Boyfriend/girlfriend without established de facto relationship
❌ Engaged couples not yet married or in established de facto relationship

---

Common Mistakes That Cost Couples Thousands

Mistake #1: Assuming FIRB Exemption = Stamp Duty Exemption

The error: Couples assume that because they don't need FIRB approval, they also don't need to pay foreign buyer stamp duty surcharges.

The reality: These are completely separate. You can be exempt from FIRB while still owing the full state surcharge.

The cost: $40,000 to $100,000+ in unexpected surcharges.

Mistake #2: Choosing Tenants in Common for Flexibility

The error: Couples choose tenants in common to allow unequal ownership or estate planning flexibility, not realizing it disqualifies the FIRB exemption.

The reality: Only joint tenants qualifies. Any other structure means the foreign person needs separate FIRB approval.

The cost: Full FIRB fees ($15,100 to $1.2M+) plus potential surcharges on the foreign person's share.

Mistake #3: Not Meeting Victoria's 12-Month Occupancy Requirement

The error: Couples claim the Victorian PPR exemption then move out before completing 12 continuous months of occupation.

The reality: FPAD becomes payable retrospectively if the occupancy condition isn't met.

The cost: 8% FPAD on the foreign person's share, plus potential penalties and interest.

Mistake #4: Forgetting NSW's 200-Day Rule

The error: Assuming a partner visa holder is automatically exempt from NSW surcharges.

The reality: The foreign spouse must have been physically present in Australia for 200+ days in the 12 months before contract to qualify as an "exempt permanent resident."

The cost: Full 9% surcharge on the foreign person's share.

Mistake #5: Buying Investment Property and Expecting State Exemptions

The error: Couples use the spousal structure for investment properties expecting to avoid all surcharges.

The reality: Most state exemptions (particularly Victoria's) only apply to principal place of residence. Investment properties attract full surcharges on the foreign spouse's share.

The cost: 7-9% surcharge on the foreign person's share of the investment.

Mistake #6: Not Realizing Spousal Purchases ARE Exempt from the Established Dwelling Ban

The error: Couples assume they can't buy established dwellings during 2025-2027 because of the federal ban.

The reality: Spousal purchases (as joint tenants) are exempt from the Foreign Acquisitions and Takeovers Act entirely under Regulation 38. The established dwelling ban applies to transactions requiring FIRB approval—which spousal purchases don't.

The opportunity: This is one of the only ways foreign persons can legally purchase established residential property during the ban period. Couples using the correct structure have full access to the market.

---

Practical Considerations: Structuring Your Purchase

When Joint Tenants Makes Sense

✅ You want to maximize FIRB savings
✅ You're comfortable with 50/50 ownership
✅ Right of survivorship aligns with your estate planning
✅ You don't need to protect assets from previous relationships

When Tenants in Common May Be Preferable (Despite FIRB Costs)

⚠️ Unequal financial contributions you want reflected in ownership
⚠️ Children from previous relationships need inheritance protection
⚠️ Asset protection concerns
⚠️ Your financial/legal advisor recommends it for specific reasons

The trade-off: Tenants in common provides flexibility but triggers FIRB requirements and may increase stamp duty exposure.

Getting Professional Advice

Given the complexity and potential costs, always consult:

1. Immigration lawyer — Verify visa status and relationship recognition
2. Property lawyer/conveyancer — Confirm optimal ownership structure and state-specific exemptions
3. Tax accountant — Understand land tax, CGT, and other ongoing implications
4. Financial advisor — Assess impact on borrowing capacity and overall financial plan

The cost of professional advice ($2,000-$5,000) is minimal compared to potential errors costing $50,000+.

---

Step-by-Step: Buying Property with Your Australian Partner

Step 1: Verify Your Eligibility

• ✅ Confirm your partner is an Australian citizen, permanent resident, or eligible NZ citizen
• ✅ Confirm your relationship qualifies (married or de facto)
• ✅ Confirm you'll purchase as joint tenants
• ✅ Note: Unlike other foreign buyers, you CAN purchase established dwellings during the 2025-2027 ban period (spousal purchases are exempt from the ban)

Step 2: Understand Your State's Surcharge Rules

• ✅ Research your state's foreign buyer surcharge rate
• ✅ Identify any spousal exemptions available
• ✅ Confirm you meet exemption requirements (PPR, occupancy period, etc.)
• ✅ Calculate expected stamp duty with and without exemptions

Step 3: Calculate Your True Costs

Use our comprehensive FIRB calculator to estimate:

• Standard stamp duty
• Foreign buyer surcharge (based on your state and eligibility)
• FIRB fees (if any—should be $0 if spousal exemption applies)
• Ongoing land tax surcharges

Step 4: Engage Professional Advisors

• ✅ Property lawyer/conveyancer with foreign buyer experience
• ✅ Confirm ownership structure before signing any contracts
• ✅ Ensure contract correctly specifies joint tenants

Step 5: Document Your Relationship (If De Facto)

For de facto relationships, prepare evidence including:

• Statutory declarations
• Joint financial accounts
• Shared bills and correspondence
• Evidence of cohabitation
• Photos and relationship timeline

Step 6: Complete Settlement

• ✅ Ensure title registration correctly shows joint tenants
• ✅ Pay applicable stamp duty (verify exemptions have been applied)
• ✅ No FIRB registration required (exemption applies)

Step 7: Meet Ongoing Obligations (If Applicable)

For Victorian PPR exemption:

• ✅ Move in within 12 months of settlement
• ✅ Occupy continuously for 12 months
• ✅ Maintain evidence of occupation

---

FAQs: Spousal Exemption Questions Answered

Q: We're engaged but not yet married. Does the exemption apply?

A: Not automatically. Engagement alone doesn't qualify. You must be either legally married or in an established de facto relationship. If you've been living together for 12+ months and can demonstrate a genuine domestic relationship, you may qualify as de facto partners.

Q: Can we buy as joint tenants with unequal financial contributions?

A: Yes. Joint tenants always means 50/50 legal ownership regardless of who contributes more financially. If one party contributes more, you can document this separately (e.g., through a loan agreement between partners), but the title must show joint tenants for the exemption to apply.

Q: What if we break up after buying?

A: Joint tenancy can be severed (converted to tenants in common) by either party. If you separate:

• The property may need to be sold or one party buys out the other
• The foreign partner may need FIRB approval for any future purchases
• Family law applies to property division regardless of FIRB rules
• Previous stamp duty exemptions generally aren't clawed back

Q: Does the exemption apply if my Australian partner is overseas?

A: Yes, for FIRB purposes. Your partner being overseas doesn't affect the FIRB spousal exemption, provided they're still an Australian citizen or permanent resident. However, state stamp duty exemptions may have residency requirements (e.g., NSW's 200-day rule applies to the foreign person).

Q: Can we buy multiple properties using the spousal exemption?

A: Yes, for FIRB purposes. There's no limit on the number of properties you can purchase using the FIRB spousal exemption. However, state stamp duty exemptions typically only apply to your principal place of residence—investment properties will attract surcharges on the foreign person's share.

Q: What if I become a permanent resident after buying?

A: Great news—once you become a permanent resident, you're no longer a foreign person for FIRB purposes. Any future purchases won't require FIRB approval (regardless of ownership structure), and you'll be exempt from foreign buyer stamp duty surcharges on future purchases. Past purchases aren't affected—you don't need to pay additional surcharges retroactively.

Q: Do NZ citizens qualify as the "Australian" partner?

A: Yes, if they hold a Special Category Visa (subclass 444) and meet any state-specific requirements. In Victoria, from November 26, 2025, NZ citizens must be "ordinarily resident" in Australia (not just holding the 444 visa) for the FPAD spousal exemption to apply.

Q: Is there any advantage to buying in NT, ACT, or Tasmania?

A: Significant advantage. The Northern Territory, ACT, and Tasmania (since July 2024) do not charge foreign buyer stamp duty surcharges. If you purchase in these jurisdictions as joint tenants with your Australian partner:

• FIRB exemption applies (no FIRB fee)
• No foreign buyer surcharge (0%)
• You pay only standard stamp duty

For a $700,000 property, this could save $50,000-$60,000 compared to purchasing in NSW or Victoria.

Q: Does the spousal exemption work for investment properties?

A: Yes, for FIRB purposes. The FIRB spousal exemption applies to investment properties as well as principal places of residence. However, most state stamp duty surcharge exemptions (particularly in Victoria and Queensland) only apply to principal places of residence. Investment properties will typically attract surcharges on the foreign spouse's share even when using the spousal structure.

Q: What happens if we already bought as tenants in common?

A: Unfortunately, tenants in common purchases do not qualify for the spousal exemption retroactively. You would have needed to structure the purchase as joint tenants from the start. However, joint tenancy can sometimes be converted to tenants in common (severed), but not the reverse. For future purchases, ensure you use joint tenants structure to qualify for the exemption.

---

Summary: Key Takeaways

1. FIRB exemption ≠ State stamp duty exemption
These are separate. You can qualify for one without the other.

2. Joint tenants is mandatory
Tenants in common does NOT qualify for the FIRB spousal exemption.

3. Spousal purchases ARE exempt from the 2025-2027 established dwelling ban
Under Regulation 38, spousal purchases (as joint tenants) are exempt from the Act entirely—meaning you CAN buy established dwellings during the ban period.

4. State rules vary significantly

• Victoria: PPR exemption available (12-month occupancy required)
• NSW: Complex rules, 200-day physical presence may be required
• Queensland: PPR relief available under Section 245 Duties Act 2001
• Tasmania/NT/ACT: No surcharges at all (Tasmania abolished surcharge July 2024)

5. Investment properties attract surcharges in most states
State exemptions typically only apply to your principal place of residence.

6. Professional advice is essential
The potential savings ($50,000-$150,000+) justify proper legal and tax advice.

---

Calculate Your Spousal Purchase Costs

Use our comprehensive calculator to estimate your total costs including:

✅ Standard stamp duty for your state
✅ Foreign buyer surcharge (if applicable)
✅ FIRB fees (if applicable)
✅ Ongoing land tax surcharges
✅ Complete cost comparison scenarios

Calculate Your Costs Now →

---

Additional Resources

• Temporary Resident vs Foreign Investor: Which FIRB Rules Apply to Your Visa?
• Complete State-by-State Guide to Foreign Buyer Stamp Duty Surcharges
• FIRB Fees Tripled in 2024: Complete Guide
• Complete FIRB Guide 2025
• FIRB Guidance Note 2: Exemptions

---

Disclaimer: This article provides general information only and should not be relied upon as legal, tax, or financial advice. FIRB rules and state stamp duty regulations are complex and change frequently. Always verify current rules with official sources and seek professional advice specific to your circumstances before making property purchase decisions.

Last updated: January 10, 2026. FIRB rules and state stamp duty surcharge rules current as of this date but subject to change.