FIRB Rules 2026: Can Foreigners Still Buy Australian Property?
Foreign Investment Review Board (FIRB) rules governing foreign property purchases in Australia were tightened materially in 2024 and 2025. As of April 2026, foreign buyers (non-residents and temporary visa holders) face a two-year ban on buying established dwellings, tripled FIRB application fees, stricter enforcement, and per-state stamp duty surcharges of 7% to 9%.
This guide covers the 2026 FIRB framework, what foreign buyers can and cannot purchase, the fee structure, and the enforcement mechanisms the ATO now uses to detect breaches.
Who Counts as a "Foreign Buyer"?
Under FIRB law, a "foreign person" includes:
- Non-residents (people not ordinarily resident in Australia, regardless of citizenship)
- Temporary visa holders (student visas, skilled work visas, partner visas pre-permanent residency)
- Foreign corporations and trusts
- Australian-incorporated entities with substantial foreign ownership (generally 20%+ by one foreign person or 40%+ combined)
Australian citizens and permanent residents (including spouses of Australians who hold PR) are NOT foreign persons for FIRB purposes, regardless of where they live or hold other citizenships.
Ordinary residence is the key test for non-citizens: if you are physically in Australia for 200+ days of the preceding 12 months with no significant absence reason, you are ordinarily resident.
The 2025-2027 Two-Year Established Dwelling Ban
Announced in March 2025, effective from April 2025 to March 2027, foreign buyers are generally prohibited from purchasing established (existing) dwellings in Australia.
What is prohibited during the ban:
- Established homes
- Existing units and apartments
- Second-hand dwellings even if renovated
What remains allowed:
- New dwellings (off-the-plan, newly constructed)
- Vacant residential land (with a build commitment within 4 years)
- Commercial property (separate FIRB regime)
- Replacement dwellings (demolish and build new on existing land)
The policy aims to redirect foreign capital into new construction, which adds to housing supply rather than bidding up existing stock.
Narrow Exemptions to the Ban
A small number of exemptions remain during the 2025-2027 ban window:
- Housing supply pathway: Individual foreign buyers who commit to make a property available for rent or demolish and redevelop within 2 years
- Temporary residents purchasing a PPOR: Limited to one home, must be sold when they leave Australia, and subject to individual assessment
- Inherited property: No FIRB approval needed
- Spouse acquisitions: Where one spouse is an Australian citizen or PR
Exemptions are narrowly construed and do not apply to pure investment acquisitions of established stock.
FIRB Application Fees in 2026
FIRB fees were tripled on 9 April 2024 and are indexed annually. For the 2025-26 financial year, fees for residential property vary significantly depending on whether the acquisition is a new/near-new dwelling (or vacant land) vs an established dwelling. Established dwelling fees are roughly 3x the new dwelling fees, reflecting the policy preference for foreign capital to fund new supply.
New or near-new dwellings and vacant land (2025-26):
| Property Value | Fee | |---|---| | Up to $1M | $15,100 | | Up to $2M | $30,300 | | Up to $3M | $60,600 | | Up to $5M | $121,200 | | Up to $10M | $272,700 | | Over $10M | Tiered, scaling into the millions |
Established dwellings (2025-26) — mostly banned April 2025 to March 2027:
| Property Value | Fee | |---|---| | Up to $1M | $45,300 | | Up to $2M | $90,900 | | Up to $5M | $363,600 | | Up to $10M | $818,100 |
Fees are non-refundable, must be paid before the statutory 30-day decision timer starts, and are per transaction. A failed application does not recover the fee.
Vacancy fee. If a foreign-owned dwelling is not residentially occupied or genuinely available for rent for more than 183 days in a vacancy year, an annual vacancy fee applies. For vacancy years beginning 9 April 2024 and later, the vacancy fee is double the original FIRB application fee.
For a typical foreign buyer purchasing a $900,000 new apartment, the FIRB fee is $15,100. Combined with state stamp duty (base plus the 7% to 9% foreign surcharge), total transaction costs still commonly exceed 10% of purchase price.
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Start Free →State-Level Foreign Buyer Surcharges
Beyond federal FIRB fees, each state charges foreign purchaser additional duty (stamp duty surcharges) and additional annual land tax.
| State | Stamp Duty Surcharge | Annual Land Tax Surcharge | |---|---|---| | NSW | 9% | 5% | | VIC | 8% | 4% | | QLD | 8% | 3% | | WA | 7% | 4% | | SA | 7% | 0.5% | | TAS | 8% | 2% | | ACT | Flat per property | Varies | | NT | 0% | 0% |
NSW's 9% stamp duty surcharge on a $1.5M property adds $135,000 to the transaction cost. This is in addition to standard stamp duty and the FIRB fee.
For state-by-state stamp duty details see our stamp duty calculator guide and land tax every state.
Enforcement and Penalties
The ATO now administers FIRB enforcement with expanded funding and data matching capabilities. Breaches carry severe penalties:
- Civil penalties: Up to $4.7 million per breach for corporations, $940,000 for individuals
- Criminal penalties: Up to 10 years imprisonment for wilful breaches
- Forced divestment: Property acquired in breach must be sold, typically at a loss
- Profit confiscation: Any capital gain achieved may be forfeited to the Commonwealth
Data-matching reviews pull residency status from Home Affairs, bank account openings, Land Titles Offices in each state, and ATO returns. Breaches that may have gone undetected a decade ago are now routinely caught.
In 2024-25, the ATO issued approximately 300 divestment orders for FIRB breaches, compared to fewer than 50 in 2018-19.
New Dwellings: What Foreign Buyers Can Still Buy
The new dwelling channel remains the primary route for foreign buyers in 2026. Eligible purchases include:
Off-the-plan apartments and townhouses. Must be purchased from the developer before completion. Single FIRB approval for the project covers all foreign sales within the development (developer pre-approval).
Newly constructed houses and land packages. House and land packages from established developers are eligible if the construction is completed or substantially complete.
Spec builds within 12 months. A newly built home that has not been occupied since construction qualifies as "new" for up to 12 months post-completion.
Vacant residential land with build commitment. Foreign buyers can acquire vacant land, but must commence construction within 4 years or face divestment orders.
Developers now price these segments with foreign buyer demand in mind, often with bundled FIRB-friendly fee packaging and referral networks in Asia and the Middle East.
Temporary Resident Rules
Temporary residents (non-PR visa holders present in Australia) face their own sub-regime:
- Can apply to buy one established dwelling as a PPOR (not rental)
- Must sell within 6 months of ceasing to be ordinarily resident
- Can buy new dwellings without the PPOR restriction
- Are subject to the same FIRB fees and state surcharges as non-residents
- Cannot buy investment property without specific approvals
The 2025-2027 established dwelling ban has narrowed this PPOR pathway significantly. Many temporary residents now redirect into new dwellings to avoid the restriction.
Compliance Steps for Foreign Buyers
- Confirm FIRB status. Check your residency status and any spouse exemptions that might apply.
- Identify eligible property. Filter for new dwellings, spec builds, or off-the-plan during the ban window.
- Apply to FIRB before exchange. FIRB approval is required before contract exchange. Applications take 30 to 60 days for straightforward cases.
- Pay FIRB fee. Non-refundable, paid at lodgement.
- Factor in state surcharges. Plan for 7% to 9% stamp duty surcharge and 3% to 5% annual land tax surcharge.
- Register with Land Titles Office. Foreign ownership is flagged on the title for enforcement.
- Maintain compliance post-settlement. Ownership register updates, vacant land build commitments, and divestment triggers on status changes.
The Future of FIRB Rules
The 2025-2027 ban is legislatively time-limited but both major parties have signalled intent to tighten rules further:
- Labor: Support making the ban permanent and strengthening the foreign ownership register
- Coalition: Proposes permanent ban plus tougher penalties and a national register
Foreign buyers should not plan on a return to pre-2025 flexibility. If anything, the regime is likely to become stricter.
For a broader political context see our Labor vs Coalition property policy 2026.
Bottom Line
FIRB rules in 2026 make Australian established residential property effectively inaccessible to foreign buyers during the 2025-2027 ban. New dwellings, off-the-plan purchases, and vacant land with build commitments remain available but carry high transaction costs (FIRB fees, state surcharges, annual land tax surcharges).
Australian citizens and permanent residents are unaffected by FIRB rules and face no additional charges. For everyone else, strict compliance is essential to avoid severe financial and criminal penalties.
Use PropBuyAI to research the Australian property market and identify suitable new dwelling opportunities for foreign investor entry. Explore pricing.
This is general information only. Foreign persons should consult a qualified Australian migration and property lawyer before any transaction.