Complete FIRB Guide 2025: Everything You Need to Know About Foreign Investment in Australian Property

Thinking about investing in Australian property as a foreign buyer? Understanding FIRB (Foreign Investment Review Board) requirements isn't just recommended—it's mandatory. This comprehensive guide breaks down everything you need to know about FIRB approval, fees, and compliance in 2025.

What is FIRB and Why Does It Matter?

The Foreign Investment Review Board (FIRB) examines foreign investment proposals in Australia and advises the Treasurer on whether they align with Australia's national interest. For property investors, FIRB approval is the gateway to legally purchasing Australian real estate.

Think of FIRB as the gatekeeper ensuring that foreign investment benefits Australia while protecting domestic housing availability and national interests.

FIRB's Key Responsibilities

Reviewing and assessing foreign investment applications
Advising the Treasurer on national interest concerns
Monitoring compliance with approval conditions
Protecting Australia's strategic and economic interests

Do You Need FIRB Approval?

Foreign Persons Who Need Approval

You'll need FIRB approval if you're:

A foreign national (non-Australian citizen)
A temporary resident (including 457, 482, or student visa holders)
A foreign company or trust
Representing a foreign government or its agencies

Who Doesn't Need FIRB Approval?

You're exempt from FIRB requirements if you're:

An Australian citizen
An Australian permanent resident
A New Zealand citizen with a Special Category Visa (subclass 444)

Understanding Property Types and Current Rules

New Dwellings (Off-the-Plan and New Homes)

Approval Status: Required for foreign persons
Purpose: Investment or primary residence
Restrictions: None on the number of properties you can buy

New dwellings include properties that have never been occupied or sold as a place of residence. This category encompasses off-the-plan apartments, newly constructed houses, and substantially renovated properties that meet the "new dwelling" definition.

Established Dwellings (Existing Homes)

⚠️ IMPORTANT: TEMPORARY BAN IN EFFECT

From April 1, 2025 to March 31, 2027, foreign persons (including temporary residents) cannot purchase established dwellings in Australia. This ban aims to ease housing pressure and increase availability for local buyers.

Limited Exceptions to the Ban

The ban doesn't apply if you're:

Redeveloping property that will create at least 20 additional dwellings
Investing in commercial-scale housing developments (build-to-rent with specific criteria)
Purchasing under the Pacific Australia Labour Mobility scheme

What This Means for Temporary Residents

Previously, temporary residents could buy one established dwelling to live in while in Australia. This is no longer possible during the ban period. If you're on a temporary visa and want to buy property, you'll need to focus on new developments or vacant land.

After the Ban Ends (Post-March 2027)

Historical rules will likely resume:

Established dwellings can only be purchased as your primary residence
The property must be sold when it's no longer your main home
You cannot rent the property to others while you own it

Vacant Land

Approval Status: Required for foreign persons
Key Conditions:

Construction must begin within 24 months of purchase
All construction must be completed within 4 years of approval
The land cannot be sold until construction is finished

These timelines are strictly enforced, with the government cracking down on "land banking" practices.

FIRB Application Fees 2025/26

Application fees are indexed annually and vary significantly based on property type and value. Here's what you'll pay for applications from July 1, 2025 to June 30, 2026:

New Dwellings & Vacant Land Fees

Property Value	Application Fee
Under $75,000	$4,500
Up to $1M	$15,100
Up to $2M	$30,300
Up to $3M	$60,600
Up to $4M	$90,900
Up to $5M	$121,200
Up to $10M	$272,700
Up to $20M	$575,700
Up to $30M	$878,700
Up to $40M	$1,181,700
Over $40M	$1,205,200

For the complete fee schedule including all price points, visit the ATO website.

Established Dwellings Fees (Tripled Rates)

⚠️ Note: While established dwellings are banned during April 2025–March 2027, these tripled fees apply to exceptional circumstances and will apply again after the ban ends:

Property Value	Application Fee
Under $75,000	$13,500
Up to $1M	$45,300
Up to $2M	$90,900
Up to $3M	$181,800
Up to $5M	$363,600
Up to $10M	$818,100
Up to $20M	$1,727,100
Up to $30M	$2,636,100
Up to $40M	$3,545,100
Over $40M	$3,615,600

The tripling of established dwelling fees reflects the government's policy to encourage foreign investment in new housing stock rather than existing homes.

Additional Fee Information

Expedited Processing: You can pay double the standard fee for 10-day priority processing (subject to approval).

Variation Fees: If you need to modify an existing approval:

Simple variation: $4,500
Complex variation: $30,300

Developer Certificates: Property developers pay a flat $65,200 initial fee for New or near-new dwelling exemption certificates, plus per-sale fees for each dwelling sold to foreign persons.

The FIRB Application Process: Step by Step

Step 1: Determine Your Eligibility

Start by using the FIRB Calculator on PropertyCosts.com.au to:

Confirm whether you need approval
Calculate your exact application fee
Understand applicable conditions

Step 2: Gather Required Documents

Before applying, prepare:

Passport copy (certified if required)
Current visa documentation (if applicable)
Property details (address, purchase price, property type)
Financial statements demonstrating capacity to purchase
Proof of funds or financing pre-approval
Company documents (if purchasing through a corporate entity)

Step 3: Submit Your Application

Applications for residential property are submitted through the ATO's online portal. The process includes:

Creating an account or logging in
Completing the online application form
Uploading supporting documents
Paying the application fee
Receiving acknowledgment of submission

Important: The 30-day assessment period only begins once the correct fee is paid.

Step 4: Assessment and Approval

The Treasury and FIRB typically assess applications within 30 days, though this can be extended if additional information is needed or if the application raises national interest concerns.

You'll receive either:

A no objection notification with conditions
A request for more information
In rare cases, a rejection

Step 5: Compliance and Ongoing Obligations

Once approved, you must:

Purchase within the specified timeframe (usually 12 months)
Comply with all conditions attached to your approval
Report to FIRB as required (e.g., when construction is completed)
Lodge annual vacancy fee returns if applicable

Understanding FIRB Conditions

Every FIRB approval comes with conditions you must follow. Here are the most common:

For New Dwellings

If purchasing as an investment, the property must eventually be sold to Australian citizens or permanent residents
The property cannot be rented to foreign persons
You must notify FIRB of any material changes to your circumstances

For Vacant Land

Construction must commence within 24 months
All dwellings must be completed within 4 years
Regular progress reports may be required
The land cannot be sold until development is complete (with limited exceptions)
Land banking is strictly prohibited

For All Property Types

The property must be used in accordance with the stated purpose in your application
You must comply with all Australian laws and regulations
You may be required to submit annual compliance reports

The Cost of Non-Compliance: Penalties and Enforcement

The Australian government takes FIRB compliance seriously. In recent years, penalties have significantly increased, and enforcement has become more aggressive.

Civil Penalties (Updated 2023–2025)

As of 2025, civil penalties for breaching FIRB regulations can include:

Individuals: Up to $1.65 million (5,000 penalty units)
Corporations: Up to $16.5 million (50,000 penalty units)

Common civil penalty offenses include:

Failing to obtain FIRB approval before purchasing
Breaching conditions of your approval
Making false or misleading statements in your application
Failing to advertise new dwellings to Australian buyers

Criminal Penalties

Serious breaches can result in criminal prosecution:

Imprisonment: Up to 10 years for severe violations
Criminal fines: In addition to or instead of imprisonment
Criminal record: Affecting future visa applications and business opportunities

Criminal charges typically apply to:

Willful violations of FIRB requirements
Fraud or deliberate misrepresentation
Repeated non-compliance after warnings
Schemes designed to circumvent FIRB rules

Unauthorized Acquisition Penalties

If you acquire property without proper FIRB approval, penalties are calculated as the greater of:

Double the capital gain when you sell the property
50% of what you paid for the property
50% of the property's current market value

This means a $1 million property purchased without approval could result in a $500,000 penalty, plus you may be forced to sell.

Vacancy Fee Penalties

Failing to comply with vacancy fee requirements can cost:

Up to $165,000 for failing to lodge returns or pay fees
From April 9, 2024, vacancy fees are double the original application fee
Additional penalties for false declarations

Forced Divestment

Beyond financial penalties, you may be ordered to sell the property:

Often under unfavorable market conditions
With no guarantee of recovering your investment
Including all associated costs (legal fees, agent fees, stamp duty losses)

Real Enforcement Examples

The government actively pursues non-compliance:

2015-2021: 434 properties were forcibly disposed of
April 2022: Federal Court imposed a $250,000 fine on a foreign investor for unauthorized purchases
Ongoing: Enhanced audit programs targeting land banking and non-compliance
2024-2025: Increased ATO enforcement with dedicated funding for residential property compliance

Annual Vacancy Fees: What You Need to Know

If you purchased a residential property after May 9, 2017 with FIRB approval, you may need to pay an annual vacancy fee.

When the Vacancy Fee Applies

You'll pay this fee if your property is:

Not occupied for at least 183 days (6 months) during the "vacancy year"
Not available for rent for at least 183 days during the vacancy year
Available for rent but at an unrealistic price that prevents renting

How Much You'll Pay

The vacancy fee equals double your original FIRB application fee (for properties purchased after April 9, 2024).

Example: If you paid $30,300 for FIRB approval to purchase a $2 million new apartment, your annual vacancy fee would be $60,600 if the property remains vacant for more than 6 months.

How to Comply

Each year you must:

Lodge a vacancy fee return by the due date (usually within 30 days after your "vacancy year" ends)
Pay any fees owing
Keep records proving occupancy or rental availability

Tips for Successful FIRB Applications

Before Applying

Start early: FIRB approval takes at least 30 days, often longer
Get professional advice: Consider engaging a lawyer or specialist consultant
Check the ban: Ensure your intended purchase isn't affected by the established dwelling ban
Calculate all costs: Use the PropertyCosts calculator to understand total expenses
Arrange finance: Get pre-approval before applying to FIRB

During the Application

Be thorough: Incomplete applications cause delays
Be honest: False information can lead to criminal charges
Respond quickly: If FIRB requests more information, provide it promptly
Keep records: Save all correspondence and documents
Check your timeline: Don't sign purchase contracts before receiving FIRB approval

After Approval

Read your conditions carefully: Understand exactly what you must do
Set reminders: For construction deadlines, vacancy returns, and reporting requirements
Maintain records: Keep proof of compliance (rental agreements, construction invoices, etc.)
Seek clarification: Contact FIRB or the ATO if you're unsure about anything
Report changes: Notify FIRB if your circumstances change materially

Frequently Asked Questions

Q: Can I buy property with my Australian citizen spouse?
A: Yes, but the structure matters. If you're purchasing as joint tenants or tenants in common, you'll typically need FIRB approval for your share. If your spouse is purchasing alone and you're not on the title, FIRB approval isn't required. Be cautious: arrangements designed to circumvent FIRB can be illegal.

Q: What happens if the ban extends beyond March 2027?
A: The government will review the ban before it expires and announce any extension. If it's extended, existing approvals remain valid, but new applications for established dwellings will continue to be rejected (except for exempted categories).

Q: Can I buy multiple new properties?
A: Yes. Foreign persons can purchase unlimited new dwellings and vacant land, subject to obtaining FIRB approval and paying the fee for each property.

Q: How long does FIRB approval last?
A: Typically 12 months from approval date. If you don't complete the purchase within this period, you may need to reapply and pay a new fee.

Q: Can I rent out my property while I'm overseas?
A: For new dwellings purchased as investments, yes—this is expected. For established dwellings purchased as your primary residence (after the ban ends), no—you must sell when you leave Australia permanently or it's no longer your main residence.

Q: What if I purchased property without FIRB approval?
A: Contact a lawyer immediately. You may be able to apply for retrospective approval, but expect significant penalties regardless. During the current ban period, retrospective approval for established dwellings is generally not being granted.

Looking Ahead: FIRB Policy Changes

Australia's foreign investment policy evolves in response to housing market conditions and national interest considerations. Recent changes include:

2023-2024: Tripling of established dwelling fees and doubling of vacancy fees
April 2025: Implementation of the two-year established dwelling ban
2025: Enhanced compliance measures and increased audit activity
2025-2026: Streamlined processing for "low-risk" investments in new housing

The government has signaled that FIRB policy will continue adapting to support housing affordability for Australians while still welcoming beneficial foreign investment.

How PropertyCosts Can Help

Understanding FIRB is complex, but getting started doesn't have to be. The PropertyCosts FIRB Calculator provides:

Instant eligibility assessment – Find out if you need FIRB approval
Accurate fee calculation – Know exactly what you'll pay
Condition breakdown – Understand your obligations
Timeline estimates – Plan your purchase properly
Comprehensive cost analysis – See all property acquisition costs in one place

Calculate your FIRB costs now →

Key Takeaways

FIRB approval is mandatory for most foreign property purchases in Australia
Established dwellings are banned for foreign persons until March 31, 2027 (limited exceptions apply)
Application fees vary significantly based on property type and value—new dwellings use standard rates while established dwellings (when permitted) incur triple fees
Penalties are severe—up to $16.5 million for corporations, 10 years imprisonment, and forced property sale
Compliance is ongoing—annual vacancy returns, development deadlines, and condition adherence are required
Professional advice matters—FIRB rules are complex and continuously evolving

Understanding FIRB requirements is your first step toward successful property investment in Australia. With proper planning, professional guidance, and the right tools, navigating the FIRB process becomes manageable—setting you up for a compliant and rewarding investment experience.

This guide is for informational purposes only and does not constitute legal or financial advice. FIRB regulations are complex and change frequently. Always seek professional advice for your specific situation.

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