FIRB Approval for Home Buyers: What It Costs and When You Need It

Key Takeaways

•        FIRB approval is required for foreign persons buying residential property, not for citizens or permanent residents.

•        Foreign buyers can generally buy new dwellings, off-the-plan or vacant land, but not established homes until mid-2029.

•        Application fees start at about $15,100 for a property up to $1 million and rise with value.

•        Approval must be in place before you buy, and the fee is not refunded if plans change.

If you are buying a home in Australia and you are not a citizen or permanent resident, you may need approval from the Foreign Investment Review Board, usually shortened to FIRB, before you can go ahead. It is a step that catches many buyers by surprise, both because of the cost and the rules about what you are allowed to buy. The reassuring part is that it is a well-defined process, and once you know how it works, it is straightforward to plan for.

This guide explains who needs FIRB approval, who is exempt, what you can and cannot buy, what it costs, how to apply, and the ongoing obligations once you own. It is general information, not legal, migration, or financial advice; because FIRB is a compliance matter with real penalties, it is worth confirming the details with a conveyancer, solicitor, or registered migration agent, and checking the current rules with the Australian Taxation Office, which administers it.

Working out the finance alongside an approval like this is easier with someone in your corner. If you would like to see how we can help you buy here, we are happy to talk it through, with no cost and no pressure.

What FIRB Approval Is

Start with what it actually is, because the name can sound more daunting than the process.

FIRB approval is the Australian Government's sign-off for a foreign person to buy residential property. Foreign investment in housing is governed by national law and administered by the Australian Taxation Office (ATO), which assesses applications and issues a no-objection notification when a purchase can proceed. The aim of the system is to direct foreign investment toward new housing that adds to supply, rather than competing for existing homes. For an individual buyer, it comes down to a straightforward question: are you a foreign person, and if so, what are you allowed to buy?

Who Needs Approval and Who Does Not

Whether FIRB applies depends on your residency status, not your nationality alone. You generally need approval if you are a foreign national, including temporary visa holders and people living overseas who are not Australian citizens. You generally do not need it if you are:

•        An Australian citizen, including one living overseas.

•        An Australian permanent resident who ordinarily lives here.

•        A New Zealand citizen holding a special category visa.

•        A foreign person buying as joint tenants with an Australian citizen, permanent resident or eligible New Zealand citizen spouse or partner.

If you fall into one of those groups, you can generally buy like any local. If not, approval is the first step, and it is worth confirming your status before you start.

What You Can and Cannot Buy

This is the part that surprises people most, so it is worth being clear.

As a foreign person, you can generally buy a new dwelling, an off-the-plan property, or vacant land on which you build a new home, usually within four years. What you generally cannot buy is an established dwelling: from 1 April 2025 to 30 June 2029, foreign persons are banned from purchasing existing homes, aside from very limited exceptions. This ban was recently extended; it had been due to finish in March 2027. The reasoning is to steer foreign investment into building new housing. So, before you settle on a particular property, check that you are permitted to buy it.

What It Costs

FIRB approval is not a token fee, so it pays to budget for it early.

Your application fee is based on the property's value and increases on a sliding scale. For a new dwelling or vacant land, the fee starts at around $15,100 for a property worth up to $1 million, then increases through higher value bands, for example, roughly $30,300 between $1 million and $2 million. The fees are set by the government, indexed each year, and are not refundable, even if your application is knocked back or the purchase falls through. So it is wise to apply only once you are confident about a property. FIRB is also just one cost: a separate foreign-buyer stamp duty surcharge, often 7% to 8% of the price, applies in most states on top of normal stamp duty.

How to Apply

The process runs through the ATO, and the order of steps matters.

You apply online through the ATO's services for foreign investors: you set up your details, lodge a residential application for the specific property, and pay the fee, at which point the assessment clock starts. The statutory timeframe is 30 days, though in practice, approvals in 2026 can take longer, often 30 to 90 days if more information is needed, so allow a comfortable buffer before settlement. Crucially, approval must be in place before you buy, so it is common to sign a contract that is conditional on FIRB approval. Once granted, your approval is generally valid for 12 months. If you are buying a brand-new property, ask the developer whether they already hold an exemption certificate, which can save you from applying yourself.

After You Buy: The Vacancy Fee

Approval comes with ongoing obligations, and one in particular can be an expensive surprise.

If you own residential property as a foreign person, you must lodge an annual vacancy fee return, and you may have to pay a vacancy fee if the home was not lived in or genuinely available for rent for at least 183 days, around six months, in the year. The fee is generally double your original application fee, so it is a significant holding cost if the property sits empty. The simplest ways to avoid it are to live in the home or rent it out. Build the vacancy rules into your plans from settlement, and set a reminder for the return, since the fee may apply even if you just miss the paperwork.

A Real-World Example: Budgeting for FIRB

Here is how the costs can stack up, with round figures. Treat it as a guide only.

Mina is on a temporary visa and wants to buy a new apartment for $700,000. Because she is a foreign person, she needs FIRB approval, and because it is a new dwelling, she is allowed to buy it. She budgets around $15,100 for the FIRB application fee, plans for the foreign-buyer stamp duty surcharge her state charges on top of normal duty, and signs a contract conditional on approval.

Her application is lodged through the ATO and approved within the validity period, and she settles comfortably within the 12 months. Because she will live in the apartment, no vacancy fee will apply. Knowing all of this upfront meant the costs were planned for, not a shock at settlement.

Where to Read More

Because the fees change each year, it is worth checking the latest figures. The ATO publishes the current schedule of FIRB fees for foreign residential investors.

Frequently Asked Questions (FAQs)

Do permanent residents need FIRB approval?

No. Australian permanent residents who ordinarily live here are not foreign persons for these rules, so they do not need FIRB approval and can buy like any local. The same applies to Australian citizens, including those living overseas, and to New Zealand citizens holding a special category visa. FIRB applies to foreign persons, mainly temporary visa holders and overseas residents who are not citizens. If you are unsure where you sit, it is worth confirming your status before you start looking.

Can I buy an established house as a foreign buyer?

Generally, no, at least for now. From 1 April 2025 to 30 June 2029, foreign persons are banned from buying established dwellings, with only very limited exceptions. You can still buy a new dwelling, an off-the-plan property, or vacant land to build on. The ban was recently extended, having previously been set to end in March 2027. One important exception is buying jointly with an Australian citizen or permanent resident partner as joint tenants, which can put established homes back within reach. A conveyancer can confirm what applies to you.

How much does FIRB approval cost?

The fee depends on the property's value and rises on a sliding scale. For a new dwelling or vacant land, it starts at around $15,100 for properties up to $1 million, then increases in higher-value bands, such as roughly $30,300 between $1 million and $2 million. The fees are indexed each year, so check the current figures before applying. They are also non-refundable, even if your application is declined or the purchase does not proceed, so it pays to apply only when you are confident about a property.

How long does FIRB approval take?

The official timeframe is 30 days from when you pay the fee. In practice, approvals in 2026 can take longer, often 30 to 90 days, particularly if the ATO asks for more information, which pauses the clock. It is sensible to allow a comfortable buffer, perhaps around 60 days, when setting your settlement date. Because approval must be in place before you buy, contracts are usually conditional on FIRB approval. Your broker and conveyancer can help line up the timing with your finance.

What happens if I buy without approval?

It is a serious matter. Buying residential property as a foreign person without the required approval, or breaching the conditions of an approval, can lead to significant civil and criminal penalties and, in some cases, an order to sell the property. The rules are administered by the ATO, which has wide powers to enforce them. This is why approval should be sorted before you commit to a purchase, and why it is worth getting advice from a conveyancer, solicitor, or registered migration agent if your situation is at all unclear.

Is the foreign-buyer stamp duty surcharge the same as FIRB?

No, they are two separate costs. FIRB is a federal approval with its own application fee, while the foreign-buyer stamp duty surcharge is charged by state and territory governments, often around 7% to 8% of the price, on top of normal stamp duty. A foreign buyer may face both. The surcharge rules vary by state, and buying jointly with an Australian partner can sometimes reduce or remove it. A conveyancer can confirm the total cost picture for your state before you commit.

The Bottom Line

FIRB approval sounds intimidating, but for most home buyers, it comes down to a few clear questions: are you a foreign person, what are you allowed to buy, and have you budgeted for the fee and the timing? Foreign buyers can generally purchase new dwellings, off-the-plan homes, or vacant land, but not established houses until at least mid-2029, and approval must be in place before you buy. The application fee starts at around $15,100 and increases with value; it is not refundable, so it pays to be sure of your property first.

Because the rules and fees change and the penalties are real, this is an area to get right with a conveyancer, solicitor, or registered migration agent, and by checking the latest details with the ATO. On the finance side, we can help you plan the purchase around your approval and find a lender that suits your situation. If you would like a hand putting it all together, we are here to help, with no cost and no pressure.