What is FIRB approval and do I need it?

FIRB rules (Foreign Acquisitions and Takeovers Act 1975) require foreign buyers to apply + get approval BEFORE signing a contract. Approval is typically conditional: approval applies only to specific properties (or vacant land for new build), and only new dwellings or vacant-land-with-build commitment are generally permitted.

Established (existing) homes are mostly off-limits to foreign purchasers - approval is only granted in narrow circumstances (temporary residents buying their PPOR, with conditions to sell within 3 months of leaving Australia). The intent is to channel foreign investment into housing supply (new builds), not bidding up existing stock.

Application fees: $13,200 for residential under $1M, $26,400 under $2M, $52,800 under $3M, etc - increase non-linearly. Plus the state-specific foreign-purchaser additional duty (3-9% on top of standard stamp duty).

Process: lodge online via FIRB portal, typical approval 30 calendar days, conditional approvals attach 'develop within 4 years' or 'occupy as PPOR' conditions. Breaching conditions = forced divestment + civil penalty.