FIRB Approval for Foreign Buyers in Queensland: What Real Estate Agents Must Know
Your buyer has a Singapore passport, a temporary skilled visa, and a budget of $1.2 million. They want to buy a house in Brisbane’s inner north. Before you get anywhere near a contract, there are two overlapping legal frameworks — one federal, one state — that will determine whether this sale can proceed at all, and at what cost. Getting either wrong doesn’t just delay settlement; it can collapse a transaction, expose your client to forced divestment, and damage your professional reputation.
If you’re dealing with foreign buyers in Queensland property, you cannot afford to misunderstand FIRB and AFAD. These are two separate legal regimes — one state, one federal — and together they can add tens of thousands of dollars to a transaction or stop it altogether. This article is your operational guide to both.
Who Counts as a Foreign Person Under Australian Law
The starting point is identifying whether your buyer is a foreign person for the purposes of the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA). The definition is broader than many agents assume.
In Australia, a “foreign person” is someone not ordinarily resident in the country. This includes non-citizens, temporary visa holders, and certain corporations and trusts. Understanding this status is crucial, as it determines the need for Foreign Investment Review Board (FIRB) approval when purchasing property.
A buyer of residential land in Queensland may be a foreign acquirer if they are a person who is not a permanent resident of Australia or an Australian citizen; or a corporation where one or more of the following holds a “substantial interest” in the corporation: an individual not ordinarily resident in Australia; or a trust where a trustee of the trust is a foreign entity.
This means the foreign buyer question is not just about citizenship. A buyer holding a 457, 482, 485, or 500 visa — regardless of how long they have lived in Australia — is generally a foreign person for FIRB purposes. So is a company with significant foreign ownership, and a discretionary trust with potential foreign beneficiaries. The way you structure a purchase can significantly affect tax exposure and approval requirements. If a trust has any potential foreign beneficiaries — even on a discretionary basis — it may still trigger surcharge land tax and stamp duty. Similarly, company structures with foreign shareholders are not exempt.
New Zealand citizens are a common point of confusion. New Zealand citizens with a subclass 444 visa may be exempt from FIRB and AFAD in certain cases. However, this exemption is not absolute, and the specifics of the buyer’s visa status and how the title is structured will determine what applies. Agents should not assume an NZ passport means no FIRB obligations — the question must be directed to the buyer’s legal adviser.
As the agent, your role is identification, not determination. If there is any reasonable question about whether a buyer is a foreign person, that question goes to their solicitor before a contract is prepared.
The FIRB Framework: What It Is and How It Works
The Foreign Investment Review Board is an advisory body within the Australian Treasury. The Foreign Investment Review Board sits within the Australian Treasury and is supported by Treasury staff who analyse proposals. The Board itself comprises senior business and public sector figures appointed by the Treasurer to provide independent advice. It is important to understand that FIRB is an advisory body — the final decision-maker is the Australian Treasurer.
For residential property, the day-to-day administration of foreign investment compliance falls to the Australian Taxation Office. Applications are lodged via the ATO’s online portal, and the ATO is also responsible for monitoring compliance after settlement.
Every foreign buyer must obtain approval from the Foreign Investment Review Board before purchasing residential property. This approval comes in the form of a “No Objection Notification” under the Foreign Acquisitions and Takeovers Act 1975.
A foreign person generally must apply to FIRB and obtain approval before buying residential property in Australia. If approval is not obtained before contract signing, the purchaser could face penalties, including forced divestment of the property.
For most applications, the statutory timeframe of 30 days for making a decision on an application or notification will not start until the correct fee has been paid in full. In practice, FIRB approvals are taking 30–90 days, depending on complexity. This has direct implications for the settlement timeframe in any contract you prepare.
Importantly, when doing a FIRB application, it is not for a specific property — it’s for a certain criteria and price range. If approved, the buyer usually has up to 12 months to find the property that meets that criteria. They do not have to apply every time they look at a property. This means a foreign buyer who has already obtained approval for a price range and property type may not need to apply again for a different property within the same parameters — though agents should always confirm the approval’s scope with the buyer’s legal adviser before assuming it covers the current transaction.
What Types of Property Foreign Buyers Can Purchase
This is the area where the rules have changed most dramatically, and where many agents — and buyers — hold outdated assumptions.
New Dwellings and Vacant Land
Foreign persons may purchase new dwellings and vacant residential land, subject to conditions. New dwellings — properties that have never been occupied or previously sold as a dwelling — are the primary pathway for foreign buyers into the Queensland market. Off-the-plan apartments in a qualifying development are the most common form.
Vacant land is allowed, provided construction commences within four years. Where a foreign buyer purchases a vacant block, FIRB approval will typically be granted with a condition requiring that construction begins within four years of acquisition. Agents selling vacant land to foreign buyers must make this condition clear — failure to build within the timeframe is a compliance breach.
The Established Dwelling Ban: 1 April 2025 to 30 June 2029
This is the single most important development in the foreign investment landscape for Queensland agents. Foreign individuals, including temporary residents, and foreign-owned entities are prohibited from purchasing established residential properties in Australia for a period that started on 1 April 2025. From 1 April 2025 to 30 June 2029, foreign persons are banned from purchasing established dwellings in Australia unless a limited exception applies. The government has extended the ban, which was due to end on 31 March 2027.
An established dwelling is any residential property that has been previously occupied or sold. That means virtually every resale listing in your database — houses, units, townhouses and apartments with prior owners — is off-limits to most foreign buyers for the duration of the ban.
The most dramatic change affects temporary residents. Before 1 April 2025, a person on a temporary visa could apply to FIRB for approval to purchase one established dwelling as their principal place of residence. That option no longer exists during the ban period.
There are narrow exceptions. A foreign person may buy an established dwelling if they plan to redevelop the site and the redevelopment will result in at least 20 additional dwellings. The previous threshold was just one additional dwelling. This change means small-scale knock-down-rebuild projects no longer qualify. A developer purchasing a single house to build a duplex will not receive approval. A developer purchasing multiple properties to construct an apartment building with 25 units may still qualify, provided the net increase is at least 20 dwellings.
Foreign persons can also purchase established dwellings where the acquisition supports housing availability on a commercial scale, including retirement villages, aged care facilities, and purpose-built student accommodation.
The established dwelling ban is a separate rule to FIRB approval and AFAD. It means that even with FIRB approval, a foreign person usually cannot buy an established home unless it falls under an exception.
Developer Exemption Certificates
An important shortcut relevant to off-the-plan sales: FIRB is not required if a foreign person purchases a new or near-new dwelling from a developer that holds a New (or Near-New) Dwelling Exemption Certificate that allows the developer to sell dwellings in the specified development to foreign persons. The foreign person should ask — or have their legal representative ask — for a copy of the exemption certificate for the development to determine if it covers their intended purchase.
Property developers applying for a New or Near-New Dwelling Exemption Certificate must pay an initial application fee of $65,200 for the 2025–26 financial year. Where a valid certificate exists and the individual sale falls within its scope, the buyer can proceed without a separate FIRB application. However, where the purchase price for a new dwelling is higher than the amount specified on the exemption certificate, the certificate will not be valid for the property purchase. This auction scenario is a genuine trap — a foreign buyer bidding beyond the certificate’s value limit is bidding without approval.
FIRB Application Fees: Current Schedule
The federal government has progressively increased application fees as a deliberate policy tool to dampen foreign demand for established residential stock. From 9 April 2024, application fees for established dwellings were tripled as part of government measures to discourage foreign acquisition of existing housing stock.
For the 2025–26 financial year, the indicative fee schedule for residential property is:
- Properties up to $1 million: $15,100 (new dwelling) / $45,300 (established dwelling, where exceptions apply)
- Properties $1 million–$2 million: $30,300 (new) / $90,900 (established)
- Properties $2 million–$3 million: $60,600 (new) / $181,800 (established)
Fees are significantly higher for established dwellings — three times the fee for new dwellings — to encourage investment in new housing supply rather than competing with Australian residents for existing stock.
Fees are indexed annually on 1 July. Always direct buyers to check the current schedule on the ATO’s website (ato.gov.au) at the time of application, as figures shift each financial year.
The fee assessment is based on the value at the time of application — not the final settlement price. Buyers should be advised to apply based on their maximum expected purchase price to avoid complications if the property is secured at auction or through competitive negotiation.
The Vacancy Fee
A cost that buyers frequently overlook — and agents almost never raise — is the annual vacancy fee. If a property remains unoccupied or unavailable for rent for more than half the year, the ATO may impose an annual fee equal to the original FIRB application fee. For vacancy years beginning 9 April 2024 and later, the vacancy fee is double the original FIRB application fee. On a $1.5 million new dwelling, this could mean an annual vacancy fee of over $50,000 — on top of all other holding costs. Buyers intending to leave a property untenanted, particularly international investors purchasing a pied-à-terre, need to understand this liability before they sign.
Foreign buyers must also register their property purchase with the ATO’s Register of Foreign Ownership of Australian Assets within 30 days of settlement using the online system. This is a post-settlement obligation that the buyer’s solicitor will typically handle, but agents should be aware it exists.
AFAD: Queensland’s State-Level Surcharge
Separate from the federal FIRB regime, Queensland imposes its own surcharge on foreign buyers of residential property. In Queensland, certain transactions that are liable for transfer duty, landholder duty or corporate trustee duty are subject to AFAD — an additional 8% surcharge if the acquirer is a foreign person and the land is residential.
Both AFAD and FIRB can apply at the same time in the same transaction, and the foreign buyer must satisfy both when applicable. On a $1 million Queensland residential purchase, AFAD alone adds $80,000 to the buyer’s costs, on top of standard transfer duty and the FIRB application fee.
Foreign owners are also subject to the land tax foreign surcharge, which is 3% in addition to the general rate of land tax. This applies to all land held by foreign persons in Queensland, not just residential property, and compounds annually for investors holding multiple properties.
The Queensland Government on 15 December 2025 published public rulings regarding new administrative arrangements that govern exemptions from AFAD and the land tax foreign surcharge. These administrative arrangements streamline the ex gratia relief process for certain investors, particularly those with significant commercial activity in Queensland. Buyers seeking exemptions from AFAD or LTFS should take specific advice from a Queensland property lawyer familiar with the Queensland Revenue Office’s current position.
The FIRB Exemption for Mixed-Nationality Couples
One of the most practically relevant exemptions in residential transactions involves buyers purchasing with an Australian partner. Acquisitions by an individual purchasing land as joint tenants with their Australian citizen spouse, Australian permanent resident spouse, or New Zealand citizen spouse (eligible for a special category visa) may be exempt from requiring a FIRB application — per FIRB Guidance Note 2: Key Concepts, Version 4, 27 May 2025.
The mechanics matter enormously here. The exemption depends not only on who the buyer is purchasing with, but also how the ownership is recorded. If the parties acquire the property as joint tenants, the exemption may apply. If they purchase as tenants in common, the foreign buyer’s interest may still require FIRB approval, even where the shares are equal.
Even if a mixed-nationality couple does not require FIRB approval, Queensland revenue consequences may still need detailed advice before exchange or settlement. The AFAD exemption does not follow automatically from a FIRB exemption — the Queensland Revenue Office applies its own tests. Agents working with international couples should ensure both parties receive qualified legal advice, particularly on how title is to be recorded.
The REIQ Contract and Your Obligations at Signing
The practical compliance question for agents comes down to contract preparation. There are standard terms in REIQ contracts — both residential and commercial — that assume a buyer warrants that FIRB approval does not apply to the contract. In the event this warranty is breached, the seller can terminate the contract. A purchaser must provide notice if they are subject to FIRB approval and follow the procedure as per the standard terms of the contract to obtain approval.
This is a critical clause. If a foreign buyer signs the standard REIQ contract without having obtained FIRB approval and without activating the relevant FIRB condition, they are in breach of the warranty from the moment of execution. The seller has a right to terminate. That is a live legal risk to the transaction and potentially to you as the preparing agent.
Contracts should include FIRB clauses. If a foreign buyer needs FIRB approval, the contract should be subject to that condition. The appropriate approach is either to ensure the buyer has current, valid FIRB approval before the contract is executed, or to insert a special condition making the contract subject to FIRB approval being obtained within a specified timeframe. Note that special conditions in Queensland contracts must be drafted by a legal practitioner — agents cannot draft them. FIRB approvals in practice are taking 30–90 days, so factor this into the settlement timeline and ensure the contract allows sufficient time.
Do not allow a foreign buyer to sign an unconditional contract in the hope of sorting out FIRB approval later. A foreign investor who signs an unconditional contract unaware that FIRB approval was required is immediately exposed to significant legal consequences. The burden is not on ignorance — FIRB applies regardless of whether the buyer knew.
Penalties for Non-Compliance
The federal government has significantly hardened its enforcement posture in recent years. The ATO actively uses data matching — visa information, land titles data, tax records — to identify breaches. They are looking for temporary residents who haven’t sold established properties as required, non-residents holding established properties illegally, and non-compliance with development conditions on vacant land.
Significant penalties — including infringement notices, civil and criminal penalties — may apply for breaches of the foreign investment law in relation to residential land. Civil penalties and fines can reach up to $3.3 million for individuals and $33 million for corporations. In severe cases, non-compliance may result in criminal penalties including imprisonment.
The Australian Government has the authority to order the forced sale of property acquired without the necessary approvals or in breach of FIRB conditions. Investors may be required to divest the property within a specified period and may face financial losses due to the forced sale.
Applications for retrospective approvals for established dwelling purchases received from 1 April 2025 will generally not be approved, even where the dwelling was purchased before 1 April 2025. In particular, a foreign person who acquired an established dwelling for use as their principal place of residence will generally not be granted retrospective approval.
Lower penalties may apply if a breach is self-reported. Where an agent discovers that a foreign buyer has already entered into a contract without appropriate approval, the buyer should be directed to seek urgent legal advice and consider voluntary self-disclosure to the ATO.
Structure, Trusts, and Corporate Buyers
Foreign buyers increasingly approach Queensland agents through company or trust structures. The FIRB and AFAD analysis changes with the structure, and agents need to know enough to ask the right questions — even if the answers belong to the buyer’s advisers.
The way you structure a purchase can significantly affect tax exposure and approval requirements. A trust with any potential foreign beneficiaries — even on a discretionary basis — may still trigger surcharge land tax and stamp duty. Similarly, company structures with foreign shareholders are not exempt.
A discretionary family trust, commonly used by Chinese and Singaporean investors, may be classified as a foreign person if any potential beneficiary is a foreign national — regardless of whether that person is likely to ever receive a distribution. Buyer identity and structure — individual, company, or trust — should be reviewed early, as FIRB consequences vary widely between structures.
Where a corporate entity is purchasing, the question of whether any foreign person holds a “substantial interest” — generally 20% or more — is determinative. The definition of associates under the FATA is also broad, meaning ownership structures designed to dilute foreign interest below the threshold may still trigger approval requirements if associates are aggregated.
What This Means for Queensland Agents
FIRB compliance is not your responsibility to manage, but it is your responsibility to identify. Every agent working with international buyers or buyers on temporary visas needs a consistent pre-contract checklist that starts with one question: is this buyer a foreign person?
If the answer is yes, or even possibly yes:
- Confirm whether the property type falls within what foreign buyers can currently purchase. As of the time of writing, established dwellings are banned for most foreign persons until 30 June 2029. Resale listings in your database are not available to most foreign buyers.
- Establish whether the buyer already holds current FIRB approval for the relevant price range and property type. If not, the contract cannot be signed unconditionally.
- Ensure the contract contains appropriate FIRB conditions, drafted by a legal practitioner. Do not use the standard REIQ warranty clause without modification for a foreign buyer.
- Remind buyers that AFAD adds 8% to Queensland transfer duty, and that the vacancy fee can double their original FIRB application fee if the property sits untenanted.
- Direct buyers to the ATO’s current residential fee schedule (ato.gov.au) for up-to-date fee calculations — figures are indexed annually on 1 July.
If you’re dealing with foreign buyers in Queensland property, you cannot afford to misunderstand AFAD and FIRB. These are two separate legal regimes — one state, one federal — and together they can add tens of thousands of dollars to a transaction or stop it altogether.
The reputational and transaction risk to your agency from a foreign buyer who signs a contract without FIRB approval, or who is caught in the established dwelling ban, is substantial. The agent who understood the framework early is the agent who closes the deal — and keeps it closed.
The legal framework governing foreign investment in residential property changes regularly. Agents should direct clients to seek independent legal advice specific to their circumstances before signing any contract. For current FIRB fees and guidance, refer to ato.gov.au and foreigninvestment.gov.au.