FIRB Rules for Foreign Property Buyers in Australia: 2026 Update for Queensland Agents

A buyer presents as keen, pre-approved for finance, and ready to sign. Then you discover they’re on a subclass 482 work visa. Or they mention they’re a New Zealand citizen living in Brisbane. Or they’re a non-resident investor based in Singapore who wants a Gold Coast apartment. Each of those scenarios carries a different legal position under Australia’s foreign investment framework — and the consequences of getting it wrong fall heavily on the transaction, the buyer, and your reputation as the agent who didn’t catch it.

The rules governing foreign residential purchases have shifted materially over the past two years. Australia’s foreign direct investment regime underwent significant changes in 2025, including measures to streamline the process for assessing investment applications. The most consequential of those changes — the two-year ban on established dwelling purchases — remains in full effect through to 31 March 2027, and its interaction with Queensland’s Additional Foreign Acquirer Duty (AFAD) means the compliance picture for QLD agents is more layered than ever.

This guide covers the current framework as at mid-2026: who needs FIRB approval, who is exempt, what property can and cannot be purchased, the current fee schedule, the vacancy fee regime, and what Queensland agents need to do in practice.

The Legal Framework: What FIRB Actually Is

In Australia, foreign direct investment is generally encouraged, although prior notification to and approval by the Australian Treasurer is required for certain types of investments. Notifications are reviewed by the Treasurer, the Foreign Investment Review Board, and the Australian Department of the Treasury on a case-by-case basis with the stated objective of ensuring that the transaction is not contrary to Australia’s national interest or national security.

Australia’s foreign investment policy framework comprises the Foreign Acquisitions and Takeovers Act 1975 (Cth) (“FATA”) and its related regulations; the Foreign Acquisitions and Takeovers Fees Imposition Act 2015 (Cth) and its related regulations; Australia’s Foreign Investment Policy; and associated guidance notes. For residential real estate, the FATA is the primary instrument, and the Australian Taxation Office administers residential applications on behalf of Treasury.

The Foreign Investment Review Board is a non-statutory advisory body that examines and advises the Australian Treasurer on foreign investment proposals. Established in 1976, FIRB plays a central role in Australia’s foreign investment framework, ensuring that foreign investment is consistent with Australia’s national interest. Critically, FIRB itself does not issue approvals — technically, the Treasurer issues a “no objection notification” — but in common practice and in contracts, it is referred to as FIRB approval throughout the industry.

Foreign persons must give notice of certain actions relating to Australian land to the Registrar of the Register of Foreign Ownership of Australian Assets. Foreign investors are generally required to submit a foreign investment proposal before acquiring an interest in residential land, regardless of its value. That last phrase is critical: there is no monetary screening threshold below which a foreign buyer can simply proceed with a residential purchase. Value is irrelevant. Status is everything.

Who Is a “Foreign Person” for FIRB Purposes?

Understanding who triggers the regime is the first filter every Queensland agent needs to apply. The definition under the FATA is broader than most buyers expect.

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. The definition also captures foreign corporations and trusts where the controlling interest is held by a foreign person. These rules apply to all “foreign persons” under the Foreign Acquisitions and Takeovers Act 1975, including temporary residents and most foreign corporations and trusts.

For Queensland agents, the practical categories to recognise are:

• Non-resident foreign nationals — buyers living and working overseas with no Australian visa entitling them to reside here
• Temporary residents — holders of visas such as subclass 482 (Temporary Skill Shortage), 485 (Graduate Temporary), 491 (Skilled Work Regional), 500 (Student), and temporary partner visas 820/309
• Foreign-owned companies and trusts — entities where a foreign person holds a controlling or substantial interest

Australian citizens living abroad are exempt from needing to obtain FIRB approval before acquiring an interest in residential property in Queensland. Australian citizens can purchase residential property without applying to FIRB, regardless of how long they have lived overseas. The exemption is citizenship-based, not residency-based. This catches out a common misconception: the Australian expat who has lived in London for ten years is not a foreign person and needs no FIRB approval whatsoever.

A foreign national who has a permanent residency visa does not need FIRB approval. They can buy a new property, existing property or vacant land, and can live in the property or use it as an investment. Permanent residents — holders of subclasses 189, 190, 186, 887, 801, and equivalent — are not foreign persons under the FATA and are unconstrained in their residential purchasing.

New Zealand Citizens: A Specific Carve-Out

New Zealand citizens are treated differently from all other foreign nationals. New Zealanders don’t have to get approval from the Australian Foreign Investment Review Board before they buy an urban residential property in Australia. New Zealand citizens who either hold or can obtain a Special Category 444 Visa are generally not required to obtain FIRB approval to purchase residential land.

Visa subclass 444 holders buying residential property generally do not need Foreign Investment Review Board approval. In practice, a New Zealand citizen living and working in Queensland on a subclass 444 is treated similarly to a permanent resident for FIRB purposes. However, agents should note that New Zealanders who want to buy rural or commercial property in Australia, like all other foreign citizens, would likely need Foreign Investment Review Board approval. The carve-out applies to residential land — it is not a blanket exemption across all asset classes.

The Joint Tenants Spousal Exemption

This exemption catches many agents by surprise. Under subsection 38(3) of the Foreign Acquisitions and Takeovers Regulation 2015, a foreign buyer may be exempt from FIRB approval when acquiring residential land as joint tenants with their Australian citizen spouse, Australian permanent resident spouse, or New Zealand citizen spouse who is eligible for a Special Category visa.

The structure of ownership matters enormously here. FIRB’s current Guidance Note 2 makes clear that this exemption does not extend to purchases made as tenants in common. A foreign national purchasing 50/50 as tenants in common with their Australian citizen partner must still obtain FIRB approval. If you are planning to buy in Queensland, it is important not to assume that a relationship-based exemption automatically resolves every issue. FIRB approval, title structuring, Additional Foreign Acquirer Duty, and post-settlement land tax exposure are separate legal questions and should be reviewed carefully before contract signing.

The Established Dwelling Ban: Still in Force Through 2027

This is the single most significant change in recent years, and it remains widely misunderstood by buyers and some agents. The Federal Government announced a temporary ban on foreign persons — including temporary residents and foreign-owned companies — purchasing established dwellings in Australia, effective from 1 April 2025 and running until 31 March 2027. The aim is to ease pressure on Australia’s housing market and increase the availability of existing homes for local buyers by restricting foreign investment.

The ban is comprehensive. Even with FIRB approval, a foreign person usually cannot buy an established home unless it falls under an exception, such as certain redevelopment situations. FIRB approval is a necessary condition for many foreign purchases — but from 1 April 2025, it is no longer a sufficient condition for established dwellings. The two instruments are independent of each other.

A review will be undertaken by the government to determine whether the ban will stay in place after 2027. Queensland agents marketing established residential properties should treat this ban as a live constraint for at least the remainder of 2026 and through to at least 31 March 2027. Do not assume it will lapse early.

Exceptions to the Established Dwelling Ban

The ban is not absolute. Limited exceptions exist, and agents need to know them.

The most relevant for Queensland is the redevelopment exception. From 1 April 2025, the following conditions generally apply to purchases of established dwellings for redevelopment: the property must be vacant at settlement; no part of the existing dwelling is to be occupied from the date of settlement until construction of the additional dwellings is complete; at least 20 additional dwellings must be built on the land; and construction of all dwellings must be completed within 4 years. Additional conditions may be imposed.

The 20-dwelling threshold means this pathway is not available to most individual foreign buyers — it is a commercial developer proposition. Individual foreign nationals cannot use it to acquire a modest Queenslander and add a granny flat.

Other narrow exceptions exist for foreign companies housing Australian-based employees and for purchasers from Pacific Island countries and Timor-Leste participating in specific labour programs, but these are highly specific and rarely applicable in standard residential transactions.

What Foreign Buyers Can Purchase: The Property Type Rules

With the established dwelling ban now operative, the available pathways for foreign buyers in Queensland have narrowed significantly. The practical position as at mid-2026 is as follows.

New dwellings: Foreign persons may purchase new dwellings and vacant residential land, subject to conditions. A new dwelling is one that has never been previously sold or occupied as a residence. This captures off-the-plan apartments, newly completed houses that have never been inhabited, and developer stock sold under a New or Near-New Dwelling Exemption Certificate. A “new” dwelling is one that has never been previously sold or occupied as a residence, including off-the-plan apartments, newly built houses never lived in, and properties with substantial renovations increasing value by 50% or more.

Vacant residential land: Foreign buyers can purchase vacant residential land to build, subject to FIRB approval and conditions including requirements to commence and complete construction within specified timeframes. Vacant land comes with strict deadlines — construction of a home must begin within four years.

Temporary residents and established dwellings: This is where it gets nuanced. From 1 April 2025 to 30 June 2029, foreign persons are banned from purchasing established dwellings in Australia unless a limited exception applies. Note the ATO specifies the ban through to 30 June 2029 for fee-schedule purposes, though the policy review is set for 31 March 2027. Agents should verify the current status at foreigninvestment.gov.au as review dates approach.

The position on temporary residents buying an established home to live in — which was previously permissible with conditions — is now suspended under the ban. Prior to April 2025, temporary residents could apply to purchase one established dwelling to use as a residence while they lived in Australia, with purchase of an established dwelling in those circumstances normally conditional on the foreign person selling the property when they leave Australia or cease being a temporary resident. That pathway is unavailable under the current ban except where a narrow exception applies.

FIRB Application Fees: The 2025–26 Schedule

Fees for foreign investment applications are indexed each financial year on 1 July. The current fee schedule applies from 1 July 2025 to 30 June 2026.

The tripling of established dwelling fees implemented in April 2024 remains embedded in the base schedule. 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 new dwellings and vacant residential land, the 2025–26 fees are indexed from the previous year’s base. For 2025–2026, FIRB fees for new dwelling applications start at $15,100 for properties up to $1 million. The fee for established dwellings is significantly higher — three times the fee for new dwellings — to encourage foreign buyers to invest in new housing supply rather than competing with Australian residents for existing stock.

For established dwellings (where an exception applies): up to $1 million purchase price — $45,300 application fee; up to $2 million — $90,900; up to $3 million — $181,800. The application fee is generally based on the value of the property you intend to buy.

For developers, the fee structure differs. Property developers applying for a New or Near-New Dwelling Exemption Certificate must pay an initial application fee of $65,200 for 1 July 2025 to 30 June 2026. Developers are then required to report the sales of new or near-new dwellings every 6 months, and a separate fee per sale is payable for each dwelling sold to a foreign person under the certificate.

One procedural change worth knowing: applicants who do not succeed in a competitive transaction may opt for either a 75% refund or a full credit of the application fee, which can be applied to a future FIRB application lodged within 24 months of the original unsuccessful bid. Fee credits are single-use only. This is relevant in Queensland’s competitive new apartment market where foreign buyers may bid on multiple development projects.

For purchases as tenants in common, the fee payable for the interest is equal to the buyer’s percentage of ownership in the property. The full purchase price determines the applicable fee bracket, but only the proportionate share is payable by the foreign co-purchaser.

The Vacancy Fee: An Ongoing Compliance Obligation

The vacancy fee is one of the most overlooked ongoing obligations in foreign residential ownership, and it has teeth. For vacancy years starting 9 April 2024, the fee will be double the original foreign investment application fee.

There is an annual vacancy fee for foreign owners of residential dwellings if the dwelling is not residentially occupied or rented for at least 183 days — approximately six months — in a year. The ATO administers the vacancy fee return, and if a foreign owner fails to lodge their Annual Vacancy Fee Return by the deadline, the ATO will automatically assume the property was vacant and charge the vacancy fee, plus penalties for late lodgment.

The practical implication: a foreign-owned investment property in Queensland that sits vacant or untenanted for more than six months in any 12-month period will incur an annual fee equal to twice the original FIRB application fee. The vacancy fee can significantly increase annual holding costs, especially for investors who do not rent out their property immediately.

Agents managing property on behalf of foreign owners, or assisting in the sale of foreign-owned stock, should flag this obligation clearly. A foreign buyer must register their property purchase with the ATO’s Register of Foreign Ownership of Australian Assets within 30 days of settlement. Failure to register is a separate compliance failure with its own penalties.

FIRB in the Queensland Context: AFAD and the Two-Regime Problem

Queensland agents face a dual compliance challenge that agents in some other states do not. 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.

AFAD is enforced by the Queensland Revenue Office and means an extra 8% duty for foreign buyers. FIRB is a Commonwealth government enforcement mechanism where approval is required prior to purchase. Queensland’s Additional Foreign Acquirer Duty increased from 7% to 8% in July 2024.

The interaction is important: FIRB exemption status does not automatically mean AFAD exemption. Although a person may be exempt from needing to obtain FIRB approval, it is still possible that they will be required to pay Additional Foreign Acquirer Duty. A New Zealand citizen on a subclass 444 visa, for example, does not need FIRB approval for a residential purchase — but their AFAD position under Queensland’s Duties Act 2001 (Qld) must be assessed separately based on their residency and visa status at the date of contract.

Enforcement: What Non-Compliance Actually Looks Like

The enforcement posture around foreign residential purchases has hardened, and agents need to understand the risk profile. Failure to notify when required can result in criminal penalties, civil fines exceeding $825 million, and forced divestment of the investment.

The most recent FIRB quarterly report provides that, during the quarter ending 31 December 2024, 26 instances of potential non-compliance were reported or identified and one infringement notice was issued. Those numbers are the visible tip — the ATO’s audit program for foreign residential land ownership operates continuously, and compliance reporting is built into the registration regime.

The ATO and Treasury have implemented an audit program and enhanced their compliance approach to target land banking by foreign investors. The ban on established dwelling purchases was announced alongside these enhanced audit measures — the two were designed as complementary tools. The government announced a ban on foreign purchases of established dwellings in an attempt to address challenges in the housing market. This measure is intended to discourage land banking by foreign investors to help ensure that foreign investment in housing is in the national interest.

For Queensland agents, the practical risk is not criminal liability — agents are not the primary compliance target. The risk is a collapsed transaction, a buyer exposed to a forced divestment order, and reputational damage from facilitating a non-compliant sale. If FIRB approval is not obtained before contract signing, the purchaser could face penalties including forced divestment of the property. A contract that proceeds without the necessary approval, or without an adequate FIRB condition, exposes your buyer to exactly that outcome.

The Treasurer also holds a post-approval call-in power. The Treasurer can invoke a ten-year call-in power and reassess any foreign purchase that later raises national-security concerns. This is primarily relevant for commercial and strategic assets, but agents dealing in properties near sensitive infrastructure should be aware it exists.

Practical Process: Timing, Conditions, and Portals

While the statutory timeframe is 30 days, in practice, FIRB approvals in 2026 are taking 30 to 90 days. Agents should factor this into settlement timelines and ensure contracts allow sufficient time.

A foreign person making an acquisition that requires approval must apply to FIRB for a notification that the Treasurer has “no objection” to the acquisition before completion. Any agreement to make the acquisition must be conditional upon receipt of FIRB approval by the investor. In a Queensland context, this means the contract must carry a special condition making it subject to FIRB approval — not a standard finance clause, but a specifically drafted FIRB condition.

If FIRB approval has not been obtained prior to signing a contract for the purchase of residential property, it is important that the contract has the necessary special condition making it subject to FIRB approval being obtained prior to settlement. This is not optional, and a generic “subject to finance” clause does not cover it.

For most applications, the statutory timeframe of 30 days for making a decision will not start until the correct fee has been paid in full. The clock starts on payment, not on lodgement. Buyers who lodge without paying the correct fee create a significant delay — the 30-day clock does not commence.

Applications for residential FIRB approvals are lodged through the ATO’s residential portal. Residential FIRB applications are processed through a separate ATO portal, which has been in operation for some time. The application is the buyer’s responsibility, not the agent’s — but agents who understand the process can steer buyers towards their conveyancer or solicitor early, before the contract is signed.

What This Means for Queensland Agents

The single most important habit any Queensland agent can develop is to identify foreign buyer status before a contract is discussed. Foreign buyer status is a factual question, not a legal one: Where does this person ordinarily live? What visa are they on? Are they a citizen, permanent resident, or something else? Once you know the status, the compliance obligations follow.

On the established dwelling ban: If your buyer is a foreign person and the property is an established dwelling, the transaction cannot proceed under current law unless a narrow exception applies — most notably, a redevelopment requiring at least 20 additional dwellings. Do not allow a contract to be signed on an established home by a foreign non-resident or temporary resident buyer without first confirming whether an exception applies and taking qualified legal advice.

On New Zealand citizens and permanent residents: These groups do not need FIRB approval for standard residential purchases. However, their AFAD position under Queensland law must be assessed separately. Do not treat FIRB exemption as a full compliance clearance.

On contract drafting: Every contract with a foreign buyer who requires FIRB approval must include an appropriately drafted FIRB condition. The standard REIQ contract does not automatically include this. Flag it to the buyer’s solicitor immediately.

On timing: FIRB approvals in 2026 are taking 30 to 90 days in practice. Agents should factor this into the settlement timeline and ensure the contract allows sufficient time. A 30-day settlement timeline is incompatible with a FIRB application that has not yet been lodged.

On fees: The current fee schedule means a foreign buyer purchasing a new apartment at $1.5 million in Brisbane will pay the FIRB application fee on top of the AFAD surcharge on top of standard transfer duty. FIRB fees can exceed legal fees and, in some cases, rival stamp duty, especially for high-value acquisitions. Help your buyer understand the full cost of acquisition before they commit. Surprises at this stage kill deals.

On vacancy compliance: If you manage property for foreign owners, understand the vacancy fee regime. A property left vacant for more than six months in any vacancy year will incur a fee equal to double the original FIRB application fee. Tenancy records and lease documentation are the evidence base if the ATO investigates.

The foreign buyer market remains active in Queensland — particularly in the Gold Coast, Brisbane CBD precinct, and Sunshine Coast new development corridors. The rules are strict, but they are navigable. Agents who understand them operate at a professional advantage. Those who don’t can inadvertently facilitate a non-compliant transaction and expose a buyer to penalties that are severe, irreversible, and entirely avoidable.

Always refer buyers to a Queensland solicitor with FIRB experience before any contract is signed. Your role is to identify the issue early and ensure the right professionals are engaged promptly. That is risk management, and it is part of your professional obligation.

The FIRB framework, fee schedule, and policy settings described in this article reflect the position as at mid-2026. Fee schedules are indexed annually on 1 July. The established dwelling ban is subject to government review prior to 31 March 2027. Always verify current settings at foreigninvestment.gov.au and ato.gov.au before providing guidance to clients.