The Foreign Investment Review Board (FIRB) is an Australian government department. They assesses applications from foreigners who would like to buy a property in Australia.
FIRB makes recommendations to the Treasurer on those subject to the Foreign Acquisitions and Takeovers Act 1975 and Australia’s foreign investment policy.
Who needs an approval from FIRB?
Foreign investors
A foreign investor is someone who lives in another country outside Australia wanting to buy a property in Australia. As a foreign investor, you will:
- Need approval from the FIRB.
- You are not able to purchase an established property as an investment property.
- As it’s an investment property it must be brand new or an off-the-plan purchase. If off-the-plan, it can also be under construction. This may be an Apartment, Townhouse or house and land.
- You can purchase a new property and rent it out to their child that is on a temporary visa.
Temporary residents
A resident living in Australia on a temporary visa may have a ‘spouse visa’, ‘457 work visa’ or ‘student visa’ to name a few.
If you are a temporary resident, you will:
- Need approval from the FIRB.
- You can only purchase one established property, but you must be occupying it (living in it). Once you have no more need to occupy the property, you must sell it.
- If you purchase an investment property it must be brand new or an off-the-plan purchase. If off-the-plan, it can also be under construction. This may be an Apartment, Townhouse or house and land.
- If you are purchasing a property with a spouse who is an Australian citizen, you are not required to seek an approval from FIRB. If the ownership was shared with other relationships you still may require approval. This exemption doesn’t apply to investment properties. Legal advice is needed.
Are there exceptions?
There are exceptions for foreign citizens. You can be exempt in the event:
- A property developer has a certificate of exemption on the property you plan to purchase.
- The property was received through an inheritance.
- The property was received through a marriage breakdown/divorce.
Who doesn’t need FIRB approval?
Citizens of New Zealand do not require an approval form FIRB. They can purchase brand new, off-the-plan, existing and investment properties.
- An Australian expat is not a foreign investor. They can purchase property without seeking an approval from FIRB.
- A foreign national who has a permanent residency.
- When you don’t need approval from the FIRB.
- You can buy a new property, existing property or vacant land.
- You can live in the property or it can be an investment.
To learn more about this, you should speak to your solicitor or contact FIRB directly. We recommend confirming an approval before proceeding to contract.
Here is a link with more useful information: https://www.ato.gov.au/General/Foreign-investment-in-Australia/
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
Sept 2019
