Foreign Investment Frameworks (FIRB)

33610 — Foreign Investment Frameworks (FIRB)

International Property Investment (33600)

Overview

The foreign investment framework administered through the Foreign Investment Review Board establishes the approval regime applicable to foreign persons proposing to acquire interests in Australian land, and in Australian entities whose assets substantially comprise Australian land. It exists to allow the Treasurer to screen proposed acquisitions against a national interest test before they proceed, and applies in addition to, rather than in place of, the general contractual and settlement process applicable to any property acquisition.

The framework distinguishes between categories of land and categories of foreign person, with different notification thresholds and approval outcomes applying to established residential dwellings, new dwellings, agricultural land, commercial land and land acquired by foreign government investors. Foreign government investors are generally required to notify proposed acquisitions of any Australian land interest regardless of value, reflecting a more conservative approach applied to that category of investor.

This node addresses the structure of the foreign investment approval framework as it applies to property acquisitions, and connects to the general international property investment framework established in node 33600 and to the cross-border taxation considerations addressed in node 33620.

Scope & Boundaries

This node covers:

The structure of the foreign investment approval regime as it applies to acquisitions of Australian land, the principal categories of notifiable action, the general conduct of the national interest test, and conditions commonly attached to approval

This node does not cover:

State-based foreign purchaser surcharge duty and land tax regimes → refer to Node 33450
The detailed national interest criteria applied to any specific transaction
Foreign investment approval requirements applicable to acquisitions of Australian businesses or assets unrelated to property

Scope Note

This node describes the general structure of the foreign investment approval framework applicable to Australian property acquisitions as at 1 October 2026. It does not constitute advice on whether a specific acquisition requires approval or on the likely outcome of an application, and prospective foreign investors should obtain specific advice and, where required, make direct application through the applicable government channel.

Key Concepts

Foreign Person

A foreign person is defined to include individuals not ordinarily resident in Australia, corporations in which a foreign person holds a substantial interest, foreign governments, and foreign government investors, among other categories. Whether a prospective purchaser meets this definition determines whether an acquisition of Australian land requires approval.

Notifiable Action

A notifiable action is a category of acquisition that a foreign person is required to notify to the Treasurer before completing, encompassing most acquisitions of interests in Australian land by foreign persons above the applicable monetary or land-category threshold.

National Interest Test

The national interest test is the standard applied by the Treasurer in deciding whether to approve, approve subject to conditions, or reject a notified acquisition, having regard to factors including national security, competition, and the impact on the community, without being confined to a fixed checklist of criteria.

New Dwelling Exemption Certificate

A new dwelling exemption certificate may be obtained by a developer of a qualifying residential development, permitting foreign persons to purchase new dwellings within that development without each purchaser separately notifying an individual acquisition.

Vacancy Fee

An annual vacancy fee applies to foreign owners of residential dwellings that are not occupied or genuinely available for rent for a specified minimum period each year, administered separately from the approval process itself.

Ban on Foreign Purchases of Established Dwellings

From 1 April 2025 to 31 March 2027, foreign persons, including temporary residents and foreign-owned companies, cannot buy an established dwelling in Australia unless a narrow exception applies, such as an investment that significantly increases or supports housing supply, or housing for the Pacific Australia Labour Mobility scheme. The ban is applied through the national interest test. The Government has said a review will decide whether it continues beyond 31 March 2027. Before the ban, temporary residents could generally buy one established dwelling to live in.

Regulatory & Legal Framework

Foreign Acquisitions and Takeovers Act 1975 (Cth)

Foreign Investment Review Board and the Treasurer

Establishes the core approval regime, notification thresholds and enforcement powers applicable to foreign acquisitions of Australian land.
Foreign Acquisitions and Takeovers Regulation 2015 (Cth)

Australian Treasury

Sets out detailed thresholds, exemptions and categories of land and action referred to in the Act.
Foreign Acquisitions and Takeovers Fees Imposition Act 2015 (Cth)

Australian Taxation Office

Imposes the application fees payable in connection with notified actions and vacancy fee liabilities.
Register of Foreign Ownership of Australian Assets

Australian Taxation Office

Records foreign ownership interests in Australian land and other assets notified or approved under the framework.

Practical Application

A foreign person proposing to acquire Australian property is generally required to determine, before entering into a binding contract, whether the proposed acquisition is a notifiable action and, if so, to obtain approval or a no-objection notification before completing the purchase. Contracts are commonly made conditional on foreign investment approval being obtained within a specified period, mirroring the treatment of other conditional due diligence periods described in node 33500.

The category of land involved materially affects the likely approval outcome — established residential dwellings cannot be bought by foreign persons, including temporary residents, during the ban described under Key Concepts, while new dwellings, vacant land for development, agricultural and commercial land are assessed on a case-by-case basis against the national interest test, generally subject to development or reporting conditions.

Scenario	Application	Outcome
Foreign national who is not a temporary resident wishes to purchase an established residential dwelling	Application is submitted for approval prior to exchange, noting the general restriction on foreign purchase of established dwellings	Approval is typically declined, or conditioned to require demolition and redevelopment, unless a specific exemption applies
Foreign company proposes to acquire a parcel of Australian agricultural land	A notifiable action is lodged given the land is classified as agricultural, and the national interest test is applied having regard to the size and nature of the holding	Approval is issued subject to conditions, including entry on the Register of Foreign Ownership of Australian Assets
Foreign investor purchases a new dwelling in an off-the-plan development covered by a developer’s new dwelling exemption certificate	Purchaser relies on the developer’s existing exemption certificate rather than lodging an individual notification	Purchase completes without a separate case-by-case approval, subject to compliance with the certificate’s conditions