Foreign Buyers and Queensland Property: Why FIRB and AFAD Must Be Checked Before Signing
Foreign buyers, temporary residents, foreign companies and foreign trusts should be cautious before signing a residential property contract in Queensland.
In the 2026–27 Federal Budget, the Australian Government confirmed that it is extending the ban on foreign buyers purchasing established homes until mid-2029. The Budget states that the Government is “extending the ban on foreign buyers purchasing established homes until mid-2029”.
This is an important development for anyone looking to buy property in Brisbane, the Gold Coast, the Sunshine Coast or elsewhere in Queensland. For foreign buyers, the question is no longer simply whether finance is available or whether the property is affordable. Before signing a contract, buyers should consider whether FIRB approval is required, whether the property type is permitted, whether an exception applies, and whether Queensland Additional Foreign Acquirer Duty, commonly known as AFAD, will be payable.
This article explains the key issues foreign buyers should consider before purchasing residential property in Queensland.
What Is the Established Home Ban?
The Federal Government previously announced that from 1 April 2025, foreign persons, including temporary residents and foreign-owned companies, would be temporarily banned from purchasing established dwellings in Australia unless an exception applies.
An established dwelling generally refers to an existing residential property that has already been built and occupied or sold as a home. In practical terms, this may include many second-hand houses, apartments and townhouses.
The policy is designed to direct foreign investment into new housing supply rather than competing for existing homes. Foreign investment guidance states that Australia’s residential property policy is to channel foreign investment into new dwellings, with the broader principle that the proposed investment should increase Australia’s housing stock.
For foreign buyers in Queensland, this distinction is critical. A newly built dwelling, a vacant block intended for residential development, or a developer exemption certificate scenario may be treated differently from an established home. However, the correct pathway depends on the buyer’s status, the property type and the proposed use.
Who Is Affected?
The rules may affect a wide range of buyers, including:
Foreign individuals who are not Australian citizens or permanent residents; temporary visa holders living in Australia; foreign-owned companies; trustees of foreign trusts; overseas investors purchasing through corporate or trust structures; and buyers relying on family funds from overseas.
Temporary residents should be especially careful. Living in Australia does not automatically mean a person can buy any residential property. A temporary resident may still be treated as a foreign person for FIRB purposes and may also be exposed to Queensland AFAD depending on the transaction.
FIRB Approval: Do Not Assume the Contract Is Safe
Foreign buyers generally need to notify or obtain approval before acquiring Australian residential land. Foreign investment guidance states that foreign investors will generally need to notify the Australian Taxation Office before acquiring residential land, regardless of value.
This is why FIRB should be considered before signing the contract, not after.
A buyer may need to consider:
Whether they are a “foreign person”; whether the property is an established dwelling, new dwelling, near-new dwelling, vacant residential land or development site; whether an exception applies; whether the contract should be conditional on FIRB approval; whether the settlement period allows enough time; and whether the purchase must later be registered on the Register of Foreign Ownership of Australian Assets.
A common mistake is assuming that FIRB is only a “formality”. It is not. If the wrong property type is selected, if the buyer’s visa or ownership structure is misunderstood, or if the contract is signed without appropriate conditions, the buyer may face serious legal and financial risk.
Established Homes vs New Homes: The Property Type Matters
The legal treatment of a property may change depending on whether it is an established home, a new or near-new dwelling, vacant land, or land being acquired for development.
Foreign investment guidance states that vacant residential land for development is generally subject to conditions requiring construction to be completed within four years and preventing sale until construction is complete. The same guidance notes that a new or near-new dwelling is not usually subject to usage conditions.
This means foreign buyers should not treat all residential property the same way.
For example, an existing apartment in Brisbane may raise different FIRB issues from an off-the-plan apartment in a new development. A house and land package may raise different issues from an established house. A redevelopment site may require a different legal analysis again.
The contract should be reviewed before signing to confirm whether the property description, conditions and buyer obligations are consistent with the buyer’s FIRB position.
Queensland AFAD: The Extra 8% Duty Foreign Buyers Often Miss
FIRB is only one part of the analysis. Queensland has its own foreign buyer duty regime.
Queensland Revenue Office states that Additional Foreign Acquirer Duty, or AFAD, is an extra 8% duty that applies to transactions liable for transfer duty, landholder duty or corporate trustee duty.
For residential land, AFAD applies when the buyer is a foreign person, the transaction involves AFAD residential land, and the liability arises on or after 1 October 2016.
AFAD residential land can include homes, apartments, vacant land on which a home or apartment will be built, residential development land, housing subdivisions, major developments with a residential component, and buildings refurbished, renovated or extended for residential use.
This is a significant cost. A buyer purchasing Queensland residential property should check AFAD before signing, because the extra duty may affect affordability, finance approval and settlement planning.
FIRB and AFAD Are Different
Foreign buyers often confuse FIRB and AFAD. They are not the same.
FIRB is a federal foreign investment approval issue. AFAD is a Queensland state duty issue.
A buyer may need FIRB approval and also need to pay AFAD. In some cases, a buyer may satisfy one set of requirements but still have exposure under the other. For example, receiving FIRB approval does not automatically remove Queensland AFAD. Likewise, calculating Queensland transfer duty does not answer whether the buyer has complied with federal foreign investment rules.
For this reason, foreign buyers should obtain advice that considers both regimes together.
Why Contract Review Is Important Before Signing
For foreign buyers, contract review is not just about standard conveyancing.
Before signing a Queensland residential property contract, a solicitor should consider whether the buyer is a foreign person, whether FIRB approval is required, whether the property is an established dwelling or another property type, whether the contract should be subject to FIRB approval, whether the settlement period is realistic, whether AFAD applies, whether the buyer structure creates extra duty or compliance issues, and whether the buyer has ongoing reporting or vacancy fee obligations.
This is particularly important for off-the-plan property, developer sales, company buyers, trust buyers, foreign investors, temporary residents and buyers using funds from overseas.
Practical Examples
A temporary resident in Brisbane wants to buy an established townhouse to live in. The buyer should not assume that living in Australia gives them the same rights as an Australian citizen or permanent resident. FIRB restrictions, the established home ban and AFAD should be checked before signing.
A foreign company wants to buy a residential development site in Queensland. The analysis may depend on whether the transaction increases housing supply, whether the land is residential land, whether development conditions apply, and whether AFAD or other duty issues arise.
A foreign buyer wants to buy an off-the-plan apartment. The property may not be treated the same way as an established home, but FIRB, developer exemption certificate issues, contract timing and Queensland duty still need to be reviewed.
A buyer signed an off-the-plan contract several years ago and settlement is now approaching. The buyer should review whether FIRB approval was required at the time of signing, whether any approval remains valid, whether AFAD applies at settlement, and whether any change in visa or residency status affects the transaction.
What Foreign Buyers Should Do Before Signing
Foreign buyers should obtain legal advice before signing any Queensland residential property contract. Ideally, the review should occur before the buyer signs, pays the deposit or becomes legally bound.
The buyer should also prepare supporting documents early, including passport and visa details, company or trust documents if relevant, details of the property, contract documents, funding information and any previous FIRB correspondence.
Early review can reduce the risk of signing the wrong contract, missing a required condition, underestimating duty, or delaying settlement.
Need Advice on FIRB, AFAD or Buying Property in Queensland?
Ensure Legal can assist foreign buyers, temporary residents, overseas investors, companies and trusts with Queensland property transactions.
We can review your contract, advise on FIRB issues, consider Queensland AFAD exposure, check whether the property type creates additional risk, and assist you before signing or before settlement.
If you are a foreign buyer considering a property purchase in Brisbane or elsewhere in Queensland, contact Ensure Legal before signing the contract.
This article is general information only and is not legal advice. Your position will depend on your visa status, ownership structure, property type, contract terms and timing.
Frequently Asked Questions
Can foreign buyers buy established homes in Australia?
Foreign buyers are generally restricted from purchasing established homes in Australia while the ban applies, unless an exception is available. The 2026–27 Federal Budget confirms that the ban is being extended until mid-2029.
Does the ban apply to temporary residents?
The original announcement stated that the temporary ban applies to foreign persons, including temporary residents and foreign-owned companies, unless an exception applies.
Is FIRB approval required for buying property in Queensland?
Foreign investors will generally need to notify the Australian Taxation Office before acquiring residential land in Australia, regardless of value.
What is AFAD in Queensland?
AFAD is Queensland’s Additional Foreign Acquirer Duty. It is an extra 8% duty that may apply to foreign buyers acquiring residential land in Queensland.
Does FIRB approval mean AFAD does not apply?
No. FIRB and AFAD are separate regimes. FIRB is a federal foreign investment issue, while AFAD is a Queensland duty issue. A buyer may need to deal with both.
