Understanding FIRB in 2026: A Guide for Foreign Investors Buying Property in Australia

This 2026 FIRB guide explains approval requirements, property types, fees and the established-dwelling ban that generally applies until 30 June 2029.

Last updated: August 2026

Foreign investors play an important role in Australia’s property market—but they must follow strict regulations under the Foreign Investment Review Board (FIRB) framework. With major changes coming into effect in 2025, understanding these rules is critical for anyone considering buying property in Australia.

This guide explains what FIRB is, who needs approval, what has changed in 2025, and how Ensure Legal can help investors navigate the process confidently.

What Is FIRB?

The Foreign Investment Review Board (FIRB) is an Australian Government body that reviews and advises on proposals by foreign investors to ensure they align with Australia’s national interests.

Its oversight covers a wide range of asset classes—including residential real estate, commercial property, agribusiness, and infrastructure—with the aim of balancing economic growth and housing supply.

2026 Update: Established-Dwelling Ban Extended

From 1 April 2025 to 30 June 2029, foreign investors are generally prohibited from purchasing established dwellings, subject to limited exceptions.

This means that:

• Foreign individuals, temporary residents, and foreign-owned companies can no longer buy existing residential properties that have been previously occupied or sold.
• Exceptions apply only in limited circumstances—such as redevelopments creating at least 20 new dwellings, build-to-rent projects, or commercial-scale housing like aged-care or student-accommodation developments.

The Government’s intention is to prioritise housing supply for Australians while encouraging foreign capital to flow into new housing projects rather than existing stock.

Who Needs FIRB Approval

Foreign investors must seek FIRB approval before acquiring:

• New or near-new dwellings that have never been occupied or were only briefly used.
• Vacant residential land intended for development.
• Off-the-plan properties—for example, apartments or townhouses in new developments that have not yet been completed.
• Properties purchased by foreign-owned companies for the purpose of housing Australian-based employees.

Important: From 1 April 2025, purchases of established dwellings are not permitted for any foreign person unless an exemption applies.

When FIRB Approval Is Not Required

You generally do not need FIRB approval if you are:

• An Australian citizen, Australian permanent resident, or New Zealand citizen.
• Buying property jointly with your Australian citizen spouse as joint tenants (although the new 2025 ban may still restrict certain established-dwelling purchases).
• A developer who holds a New Dwelling Exemption Certificate, which permits the sale of multiple new dwellings to foreign buyers without individual applications.

How to Apply for FIRB Approval

1. Determine the correct application type.
   • If you are purchasing a specific property, lodge a standard application.
   • If you plan to bid across multiple properties, apply for an Exemption Certificate valid for up to 12 months.
2. Apply via the new Foreign Investment Portal.
   The Australian Government’s Foreign Investment Portal replaces previous paper-based processes.
   Applicants must now provide more detailed tax information and declare the source of funds at the time of submission.
3. Pay the application fee.
   The fee depends on the property’s value. Fees are non-refundable once processing begins, although new rules allow fee credits or partial refunds (up to 75%) for unsuccessful bidders in competitive sale processes.
4. Await assessment.
   Simple cases may be approved within 30 days, but complex or high-value transactions can take longer.

Exemption Certificates

An Exemption Certificate allows a foreign investor to bid on multiple properties within a defined area without lodging a new FIRB application each time.
However, once one purchase is completed, the certificate cannot be reused.

This option provides flexibility for buyers seeking new or off-the-plan properties but is not available for established dwellings under the 2025 restrictions.

Typical Approval Conditions

Every FIRB approval comes with conditions that must be met. Common examples include:

• Using the property as a principal residence (for temporary residents).
• Not renting out the property if purchased for personal occupation.
• Completing construction within four years for vacant land or redevelopment projects.
• Meeting build-to-rent or affordable-housing obligations for large-scale developments.

Failure to meet these conditions can result in penalties, including fines or forced sale orders.

Varying an Existing FIRB Approval

If your circumstances change, you can apply to vary your existing approval:

• Simple variations cover minor corrections (e.g., name spelling or property address).
• Complex variations involve substantial amendments—such as extending the approval period or adding a subsidiary buyer.

Significant changes may require submitting a new application rather than a variation.

Mortgagee Interests and Foreign Lenders

Foreign lenders who take mortgages over Australian property must also comply with FIRB rules.
A foreign lender acquiring or enforcing a security interest over residential property generally requires FIRB approval before doing so.

FIRB Fees and Refund Policy

Fees are tiered according to property value and are updated annually. Key 2025 updates include:

• Higher fees for residential acquisitions, especially established dwellings.
• Refund and credit options for competitive bid processes (75% refund or 100% credit if unsuccessful).
• All fees must be paid in full before assessment begins.

Vacancy Fee Obligations

Foreign owners of residential properties must file an annual vacancy fee return showing the property is either occupied or genuinely available for rent.
Leaving a property vacant for extended periods can lead to significant vacancy taxes, introduced to deter speculative ownership and keep housing supply active.

Penalties for Non-Compliance

The Australian Government has strengthened enforcement powers. Non-compliance can lead to:

• Heavy civil penalties and fines.
• Forced disposal of properties acquired without approval.
• Future investment bans for serious breaches.
  The Australian Taxation Office (ATO) has expanded its audit and site-inspection powers to verify compliance with FIRB conditions and vacancy-fee obligations.

How Ensure Legal Can Help

Applying for FIRB approval is increasingly complex under the new 2025 regime.
At Ensure Legal, our experienced property and commercial lawyers provide:

• Eligibility assessments to determine whether FIRB approval or exemptions apply.
• Application preparation and submission via the new online portal.
• Contract review and due-diligence support, ensuring transactions comply with FIRB rules.
• Variation and exemption-certificate management, helping clients adjust to evolving conditions.
• Vacancy-fee and compliance guidance, reducing regulatory risk after purchase.

Whether you are a Hong Kong, Taiwanese, or international investor looking to acquire property in Brisbane, the Gold Coast, or anywhere in Australia, our team will help you navigate FIRB approval with confidence and clarity.

Contact Ensure Legal

For professional legal advice on FIRB applications and Queensland property transactions:

Ensure Legal
Level 8, 193 North Quay, Brisbane QLD 4000
📞 +61 402 937 286 🌐 ensurelegal.com.au

Our FIRB and foreign investment legal services can advise on approval requirements, application documents and transaction timing.