FIRB approval is mandatory. Any foreign person buying residential real estate in Australia must obtain FIRB approval, no matter the property value. Applications are made through the Australian Taxation Office (ATO) via its online services for foreign investors. Application fees are non-refundable if the contract does not settle.
What foreign buyers can and can't buy. Approvals typically cover only vacant land for development, residential development, or newly constructed dwellings. Non-resident foreign persons generally cannot purchase established dwellings. Temporary residents may purchase only one established dwelling, and only as their principal place of residence.
Protect yourself in the contract. Because approval must be in place before you take title (in NSW, before you even enter into the contract), insert a special condition allowing you to terminate the contract if FIRB approval cannot be obtained before settlement. Without it, a failed or delayed approval can cause serious financial loss.
Penalties for getting it wrong. Buying without the required approval is an offence. Consequences can include monetary penalties, infringement notices, forced sale of the property, and — in the most serious cases — imprisonment.
Register with the ATO after settlement. Within 30 days of settlement, foreign owners must register their acquisition on the Register of Foreign Ownership of Australian Assets using the ATO's online notification system.
Ongoing occupancy / vacancy obligations. If the property is not occupied or genuinely available for rent for at least half the year, the ATO may charge an annual vacancy fee equal to the foreign investment application fee. These fees increased significantly from April 2024.
Foreign-buyer surcharges by state at a glance
| State | Foreign purchaser duty surcharge | Foreign owner land tax surcharge |
|---|---|---|
| NSW | 9% (from 1 January 2025) | 5% (2025 land tax year) |
| VIC | 8% (foreign purchaser additional duty) | 4% (absentee owner surcharge, from 2024) |
| QLD | 8% (additional foreign acquirer duty, from 1 July 2024) | 3% (foreign/absentee surcharge) |
Federally, you also need FIRB approval before an unconditional contract, must register on the Register of Foreign Ownership of Australian Assets within 30 days of settlement, and may face an annual vacancy fee if the home isn't occupied or genuinely available for rent for at least 183 days a year. Rates change — confirm current figures with the relevant state revenue office.
Costs differ by state. Foreign buyers pay additional transfer/purchaser duty and land tax surcharges on top of the standard amounts. The rates and how they are calculated vary by state — see your state's page for the exact figures (Queensland, Victoria and New South Wales each differ).