FIRB residential real estate — temporary residents (established-dwelling ban to 30 June 2029)
Temporary residents need foreign investment approval before buying residential land; established dwellings are generally banned from 1 April 2025 to 30 June 2029.
Who must comply
Foreign persons acquiring residential land in Australia, including temporary visa holders, who until 30 June 2029 can generally buy only new dwellings or vacant land (an established dwelling only where a ban exception applies). Australian citizens living abroad, New Zealand citizens holding or eligible for a special category visa, permanent residents, and spouses buying as joint tenants with an Australian citizen, permanent resident or eligible New Zealand citizen spouse do not need an application. Developers can notify on behalf of foreign buyers of new dwellings.
What triggers it
Proposing to buy a new dwelling, vacant residential land or (where an exception applies) an established dwelling while a foreign person; selling residential land; or a dwelling owned under approval being left vacant.
When due
Before entering the purchase: approval must be obtained first. Purchases and sales are notified to the Register of Foreign Ownership of Australian Assets; construction on vacant land is generally due within 4 years, and the land cannot be sold until it is complete; approval conditions, reporting and any vacancy fee obligations continue after purchase.
Evidence required
Residential property application and the approval with its conditions; evidence of the exemption relied on if no application was made; Register of Foreign Ownership notifications for purchase and sale; construction completion evidence for vacant land; vacancy fee returns; any self-disclosure of a breach.
Max penalty
Significant penalties, including infringement notices and civil and criminal penalties, apply to breaches of the foreign investment law for residential land (see the Treasury's Guidance Note 14); a disposal order may be made. Lower penalties may apply where a breach is self-reported, and retrospective approval can be sought. Penalty amounts were not restated here.
Summary
Under the Foreign Acquisitions and Takeovers Act 1975, a foreign person, including a temporary resident, must generally submit a foreign investment proposal and obtain approval before acquiring an interest in Australian residential land, whatever its value. Residential applications are lodged and paid through the ATO's Online services for foreign investors, and the ATO handles residential compliance and enforcement. Government policy channels foreign investment into new dwellings: from 1 April 2025 to 30 June 2029 foreign persons are generally prohibited from buying established dwellings, with limited exceptions such as redevelopment, commercial-scale housing supply and certain Australian-based employees. Approvals for vacant land are generally conditional on completing construction within 4 years. Every purchase and sale must also be notified to the Register of Foreign Ownership of Australian Assets, and a vacancy fee may apply.
Enforced by
Source legislation
Topics
Related
- CWLTHConduct conveyancing via PEXA (e-conveyancing) where mandatedMost state property transactions must be lodged electronically via PEXA or sympli.
- CWLTHNotify FIRB before foreign investment in Australian assetsForeign persons must notify the Foreign Investment Review Board before acquiring interests above prescribed thresholds.
Frequently asked questions
- Who must comply with FIRB residential real estate — temporary residents (established-dwelling ban to 30 June 2029)?
- Foreign persons acquiring residential land in Australia, including temporary visa holders, who until 30 June 2029 can generally buy only new dwellings or vacant land (an established dwelling only where a ban exception applies). Australian citizens living abroad, New Zealand citizens holding or eligible for a special category visa, permanent residents, and spouses buying as joint tenants with an Australian citizen, permanent resident or eligible New Zealand citizen spouse do not need an application. Developers can notify on behalf of foreign buyers of new dwellings.
- What triggers FIRB residential real estate — temporary residents (established-dwelling ban to 30 June 2029)?
- Proposing to buy a new dwelling, vacant residential land or (where an exception applies) an established dwelling while a foreign person; selling residential land; or a dwelling owned under approval being left vacant.
- When is FIRB residential real estate — temporary residents (established-dwelling ban to 30 June 2029) due?
- Before entering the purchase: approval must be obtained first. Purchases and sales are notified to the Register of Foreign Ownership of Australian Assets; construction on vacant land is generally due within 4 years, and the land cannot be sold until it is complete; approval conditions, reporting and any vacancy fee obligations continue after purchase.
- What is the maximum penalty for FIRB residential real estate — temporary residents (established-dwelling ban to 30 June 2029)?
- Significant penalties, including infringement notices and civil and criminal penalties, apply to breaches of the foreign investment law for residential land (see the Treasury's Guidance Note 14); a disposal order may be made. Lower penalties may apply where a breach is self-reported, and retrospective approval can be sought. Penalty amounts were not restated here.
- What evidence is required for FIRB residential real estate — temporary residents (established-dwelling ban to 30 June 2029)?
- Residential property application and the approval with its conditions; evidence of the exemption relied on if no application was made; Register of Foreign Ownership notifications for purchase and sale; construction completion evidence for vacant land; vacancy fee returns; any self-disclosure of a breach.
Source: https://foreigninvestment.gov.au/guidance/types-investments/residential-land. Rules Mate is not a law firm. Always verify against the live regulator source before acting.