Foreign buyers and FIRB approval for a home

Who is a foreign person

For an individual, Treasury’s key concepts page says “a person not ordinarily resident in Australia” is a foreign investor. “To be ordinarily resident in Australia you must be in Australia during 200 or more days of the preceding 12-month period”, and your continued presence must not be subject to any limitation. The page adds that “temporary residents, foreign non-residents, and New Zealand citizens not ordinarily resident in Australia are taken to be foreign investors”.

Who does not need to apply

The residential page lists these exemptions (it points to the Key Concepts note for the full list):

• Australian citizens living abroad;
• New Zealand citizens who hold, or are eligible for, a special category visa;
• holders of Australian permanent residency visas;
• joint tenants purchasing with an Australian citizen spouse, an Australian permanent resident spouse, or a New Zealand citizen spouse eligible for a special category visa.

Treasury’s guidance gives examples: a New Zealander eligible for a special category visa, or a permanent visa holder, does not need approval to buy an established dwelling.

What needs approval

Foreign persons generally require foreign investment approval before acquiring an interest in residential land, regardless of its value (Guidance Note 6). You apply through the ATO website before you buy, not through the Foreign Investment Portal. A fee is payable for every application. Buying or selling residential land also requires notice to the Register of Foreign Ownership of Australian Assets.

Significant penalties, including infringement notices, civil and criminal penalties, may apply for breaches. The guidance gives an example of a temporary resident who bought an established dwelling without approval and gave notice after the ban began: the application was not approved and he “may be required to sell the property and pay a penalty”.

The three types of purchase

Established dwellings. “From 1 April 2025 to 30 June 2029, foreign investors are generally prohibited from purchasing established dwellings.” Limited exceptions, subject to approval and considered case by case:

• redevelopment that will significantly increase housing stock by at least 20 additional dwellings (including Build to Rent);
• purchases that support the availability of housing on a commercial scale (for example multi-unit developments such as Build to Rent, retirement villages, student accommodation);
• foreign-controlled companies that employ workers from Pacific island countries and Timor-Leste and must house them.

Mortgages from foreign lenders are not subject to the ban. Applications made before 1 April 2025 are considered under the earlier guidance. The 30 June 2029 end date is the date shown on Treasury’s pages read on 14 October 2026.

New dwellings. Approval is not usually subject to conditions about use. A developer selling off the plan can apply for approval on behalf of foreign customers; where the developer holds approval, the foreign person generally does not need their own.

Vacant land. Approval is generally conditional on construction being completed within four years and the land not being sold until construction is complete.

Annual vacancy fee

Foreign owners of residential property pay an annual vacancy fee if the property is not residentially occupied or genuinely available for rent for more than 183 days in a year. The return is due within 30 days of the end of each vacancy year. The ATO administers compliance.

Fees for the 2026-27 financial year

These come from Treasury’s Schedule of Fees (version 8, 1 July 2026). Amounts can differ for a specific proposal because of special rules in the Fees guidance note.

Fees continue to step up with price; the schedule lists each $1m band. Fees are paid by BPAY, direct deposit or international bank transfer: from 19 September 2026 Treasury no longer accepts credit or debit cards.

State taxes that come on top

Purchase duty and any surcharge on foreign purchasers are state taxes, set by each state and territory. See foreign purchaser surcharge duty and the stamp duty calculator. On a later sale, see also foreign resident capital gains withholding.

Which professional to consult

A conveyancer or solicitor who handles foreign purchases can check whether you are a foreign person and that approval is a condition of the contract; see conveyancer. Treasury’s guidance describes an example of a contract that “is not binding until” the buyer receives foreign investment approval. Treasury and the ATO give the official information; this guide is not legal or tax advice.