What Is FIRB Approval and Who Needs It to Buy Property in Queensland?

A buyer submits an offer on a Brisbane new apartment. Their finances are solid, their offer is competitive, and they are keen to proceed. But they hold a temporary visa — and no one has yet raised the question of FIRB approval. If the contract goes unconditional without it, that buyer has broken federal law, and the agent has a problem.

Understanding the Foreign Investment Review Board approval framework is not optional knowledge for Queensland agents. Every agent working in new developments, south-east Queensland growth corridors, or any market with international buyer activity will encounter FIRB-affected transactions. Knowing who needs approval, what type of property they can purchase, and how the process works is the difference between a clean transaction and a derailed settlement.

What FIRB Actually Is

The Foreign Investment Review Board — universally known as FIRB — is a non-statutory advisory body that sits within the Australian Treasury. FIRB is a non-statutory body that advises the Australian Government and the Treasurer regarding Australia’s Foreign Investment Policy. In practice, the board reviews and provides recommendations on proposed foreign investments, but the legal authority to approve or reject applications rests with the federal Treasurer.

Under the Foreign Acquisitions and Takeovers Act 1975, proposed foreign investments are assessed using the national interest test or the national security test. Most investments are screened under the national interest test if they meet the monetary thresholds. For residential property, however, the thresholds are largely irrelevant — the requirement to seek approval applies to virtually all residential transactions by foreign persons, regardless of property value.

The purpose of the FIRB approval framework is to ensure that foreign investments align with Australia’s national interest. Without this approval, foreign buyers may not legally purchase residential or commercial properties in Australia. For agents, the practical consequence is straightforward: if a foreign person takes an interest in residential property before receiving approval, they are in breach of the Act. Applicants must wait to receive approval before taking an interest in residential real estate. To take any action before approval is received is a breach of the law.

Who Counts as a “Foreign Person”

This is where agents make their most common mistakes. The definition of a “foreign person” under the Foreign Acquisitions and Takeovers Act 1975 is broader than most people assume.

Under the Foreign Acquisitions and Takeovers Act 1975, a person is a “foreign person” if they are: an individual not ordinarily resident in Australia; a corporation where a foreign person holds at least 20 per cent interest; two or more foreign persons holding a combined 40 per cent interest; the trustee of a trust meeting those same thresholds. The definition extends well beyond individuals. Even an Australian family trust can become foreign if a relative marries a foreign spouse, because that spouse becomes a potential beneficiary. When the trustee buys property, FIRB approval may be required even if no foreign distribution has occurred.

Australian citizens are unequivocally exempt — always. Under the Foreign Acquisitions and Takeovers Act 1975, a “foreign person” is broadly defined as someone who is not: an Australian citizen — regardless of where they live or how long they have been overseas — an Australian permanent resident ordinarily resident in Australia, or a New Zealand citizen holding a special category visa (subclass 444). The citizenship exemption is absolute in its application to Australian nationals: the exemption is citizenship-based, not residency-based. That distinction is important and often misunderstood.

Permanent residents occupy a more complex position. A permanent resident who is “ordinarily resident in Australia” is not a foreign person and does not need FIRB approval. However, if a PR holder is living overseas and no longer ordinarily resident in Australia, they may be classified as a “temporary resident” under FIRB rules and subject to approval requirements. When a buyer presents a permanent residency visa but discloses they have been living outside Australia for several years, agents should flag this for their conveyancer’s attention rather than assume the buyer is exempt.

New Zealand citizens who hold or are eligible for a special category visa are exempt from requiring foreign investment approval for residential land. New Zealand citizens who do not hold a special category visa — typically those living outside Australia — are treated as foreign persons and must comply with the same requirements.

For temporary visa holders, the position is clear: under Australian law, “foreign persons” — which includes most temporary visa holders — must generally apply for and receive approval before they can legally purchase a property. This covers a wide range of visa subclasses commonly seen in Queensland’s buyer pool, including temporary visa holders on subclass 482 (TSS), 491 (Regional), 485 (Graduate), 500 (Student), and 820/309 (Partner — temporary).

What Foreign Persons Can and Cannot Buy

The type of property a foreign person can purchase depends on whether they are a temporary resident or a foreign non-resident, and on recent legislative changes that have significantly tightened the rules.

The Established Dwelling Ban

This is the single most significant change agents need to understand. From 1 April 2025 to 30 June 2029, foreign persons are banned from purchasing established dwellings in Australia (limited exceptions apply). The government has extended the ban, which was due to end on 31 March 2027. This includes temporary residents purchasing an established dwelling for use as a principal place of residence. Temporary residents can still apply for approval to purchase vacant land or new dwellings.

Prior to April 2025, temporary residents could apply to purchase a single established dwelling to use as their principal place of residence while they lived in Australia. That pathway is now closed. From 1 April 2025 to 30 June 2029, purchases of established dwellings by foreign persons to use as their principal place of residence in Australia are banned. Applications can no longer be made after 31 March 2025.

There are limited exceptions. Foreign developers can still apply to purchase an established dwelling for redevelopment — demolishing and replacing it with multiple dwellings — subject to strict conditions. From 1 April 2025, the government generally approves applications to buy and develop an established dwelling if it significantly increases Australia’s housing stock. At least 20 additional dwellings must be built on the land. Construction of all dwellings must be completed within 4 years. This is a high bar and relevant primarily to developers, not individual buyers.

New Dwellings and Vacant Land

Subject to FIRB approval, foreign persons are generally permitted to acquire “new dwellings.” A new dwelling is one that has never been previously sold or occupied as a residence. A “new” dwelling is one that has never been previously sold or occupied as a residence. This includes off-the-plan apartments, newly built houses never lived in, and properties with substantial renovations (increasing value by 50% or more). An “established” dwelling is any property that has been previously sold or occupied, even if only briefly.

This distinction matters enormously in Queensland’s apartment market. An off-the-plan purchase by a foreign buyer is generally approvable. A two-year-old apartment being resold by its original purchaser is established — and under the current ban, unavailable to foreign buyers.

Vacant land is subject to FIRB approval with conditions around development timelines. Foreign buyers approved to purchase vacant residential land are typically required to commence and complete construction within prescribed timeframes.

The Spousal Joint Tenancy Exemption

One exemption that regularly arises in Queensland transactions involves mixed-nationality couples. 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.

This is technically narrow: the exemption under the Foreign Acquisitions and Takeovers Regulation 2015 applies only where the purchase is structured as joint tenants with a qualifying spouse or de facto partner — not any co-purchaser — who is an Australian citizen, permanent resident, or eligible New Zealand citizen. You do not need FIRB approval if you are buying the property with an Australian citizen as joint tenants and you are in a spousal relationship. This does not apply to other relationships like business partners, mother/father and child, siblings, friends, or relatives.

The Application Process

Unlike other FIRB applications which must be applied through the FIRB, applications to purchase residential real estate are done through the Australian Taxation Office’s foreign investment application portal. The ATO portal is at ato.gov.au, and the process requires the buyer to create or log in to an ATO Online account.

The statutory timeframe of 30 days for making a decision will not start until the correct fee has been paid. That is, the clock only starts ticking once the fee payment clears. For residential property applications, the ATO generally takes up to 30 days to process an application after the application fee has been fully paid. In practice, however, the timeframe can extend beyond 30 days if the application is complex or requires additional information.

The practical implication for agents is straightforward: factor in at least 30 days for FIRB processing when negotiating settlement periods — 60 to 90 days is advisable when FIRB is involved. For off-the-plan purchases, the FIRB condition is less urgent at contract stage because settlement is years away — but approval should still be obtained well in advance of the expected construction completion date.

Foreign persons who want to minimise the risk of a property they are interested in purchasing being sold to someone else before they receive foreign investment approval can enter into a contract as long as the contract is conditional on receiving foreign investment approval. That FIRB condition clause is the standard mechanism for protecting both buyer and agent. The contract must include a “FIRB condition” allowing the buyer to withdraw or delay settlement if approval has not yet been received. Without this clause, the buyer could be forced to settle even if their FIRB application is still pending — risking breach of contract or forfeiture of deposit.

After settlement, the obligations do not end. The buyer must register the purchase within 30 days of settlement by completing the Land and Water Registration form on the ATO’s website.

FIRB Application Fees: What Foreign Buyers Pay

Application fees are non-trivial and have increased substantially in recent years. The amendments under the Foreign Acquisitions and Takeovers Fees Imposition Amendment Act 2024 (Cth) commenced on 9 April 2024. FIRB application fees for established residential premises tripled, and vacancy fees doubled.

For the 2025–26 financial year, the fee schedule for residential property is: properties up to $1 million attract a fee of $15,100 for new dwellings or $45,300 for established dwellings. Properties between $1 million and $2 million attract $30,300 (new) or $90,900 (established). Properties between $2 million and $3 million attract $60,600 (new) or $181,800 (established).

Fees for foreign investment applications are indexed each financial year on 1 July. Always direct buyers to the ATO’s current fee schedule at ato.gov.au rather than relying on figures from prior years.

FIRB application fees are 100% non-refundable, even if the application is rejected, the buyer decides not to proceed, or the property sale falls through. There is one narrow exception: if foreign investment applicants are unsuccessful in a competitive bid process, they have a choice between a 75% refund or a 100% credit of their FIRB application fees. The refund must be applied for within six months after being informed of an unsuccessful bid.

The Vacancy Fee

In addition to FIRB application fees, foreign investors who acquired a residential dwelling after 9 May 2017 must pay an annual vacancy fee. The vacancy fee is payable by foreign investors in circumstances where the dwelling is not occupied, or genuinely available for rent (for a term of at least 30 days), for at least 183 days in a 12-month period.

For vacancy years starting 9 April 2024, the fee is double the foreign investment application fee. In practice, this means the vacancy fee for a foreign buyer who purchases a new $1 million property and leaves it empty for more than six months could equal $30,200 per year — on top of all other holding costs.

The policy intent is explicit: the rationale behind these mechanisms is to ensure Australians have priority in access to housing, and that otherwise liveable dwellings are not sitting idle.

Queensland-Specific Obligations: AFAD

FIRB approval is a federal requirement, but Queensland imposes its own layer of cost for foreign buyers purchasing residential property in this state. The Additional Foreign Acquirer Duty (AFAD) is levied by the Queensland Revenue Office on top of standard transfer duty.

AFAD is an extra 8% of duty that applies to transactions that are liable for transfer duty, landholder duty, or corporate trustee duty. As of 1 July 2024, the AFAD rate in Queensland has increased from 7% to 8%. This means foreign acquirers purchasing residential property in Queensland will pay an additional 8% on top of the standard transfer duty.

The practical cost is significant. On a $1 million property, that is $80,000 in AFAD alone. That is in addition to the standard transfer duty and the FIRB application fee. The combined acquisition cost for a foreign buyer in Queensland is substantially higher than for a domestic purchaser.

AFAD applies when the acquirer is a foreign person for the purposes of the transaction and the transaction involves AFAD residential land. AFAD residential land is land in Queensland that is or will be used solely or primarily for residential purposes, where particular conditions are met.

Importantly, AFAD operates independently of FIRB approval requirements. Queensland also imposes separate surcharge rules in some land tax contexts, including absentee surcharge and foreign surcharge rules depending on the ownership entity and circumstances. These are distinct from FIRB approval requirements and must be assessed separately. Even where a transaction falls under the spousal joint tenancy FIRB exemption, Queensland revenue consequences may still need detailed advice before exchange or settlement.

From 1 July 2024, Queensland also increased its foreign owner land tax surcharge. The Queensland Government increased the surcharge rate of land tax applied in addition to the normal land tax rates for foreign companies, trustees of foreign trusts, and absentees, from 2% to 3%.

Penalties for Non-Compliance

The consequences of proceeding without FIRB approval are serious. The federal government has made clear its intention to increase enforcement activity. The Federal Government has announced enhancements to the ATO’s compliance regime to ensure foreign investors continue complying with their obligations under the FIRB rules. This suggests a potential uptick in the issuance of infringement notices and increased audit activity by the ATO.

Foreign persons who have acquired residential land without prior approval may apply for retrospective approval, but this is not guaranteed. Where a person has acquired an interest in residential land without prior foreign investment approval in breach of the Act, they may apply for retrospective approval. Retrospective applications will be considered in accordance with the national interest test at the time of application. For established dwelling purchases after 1 April 2025, a retrospective application would be assessed against the current ban — meaning approval is extremely unlikely.

Queensland agents cannot prevent a buyer from transacting without FIRB approval, but they can ensure they have raised the question, documented that discussion, and confirmed the contract includes the appropriate FIRB condition clause where required. Failing to ask is not a neutral position.

What This Means for Queensland Agents

FIRB is a live issue in every segment of the Queensland market that attracts overseas buyers — new apartment developments, Gold Coast prestige property, Brisbane inner-city off-the-plan projects, and any listing marketed to migration visa holders.

The key practical points agents must carry into every foreign buyer transaction:

• Australian citizens never need FIRB approval, regardless of where they live. Permanent residents ordinarily resident in Australia are also generally exempt. Everyone else requires careful assessment.
• From 1 April 2025 to 30 June 2029, foreign persons are banned from purchasing established dwellings in Australia — including temporary residents who previously had a principal residence pathway. The market for foreign buyers in Queensland is, at present, effectively limited to new dwellings, off-the-plan, and vacant land.
• If FIRB approval is required, lenders will typically need to sight the approval before formally approving the loan. This adds time to the settlement process. Agents should negotiate settlement periods accordingly — typically a minimum of 60 days for FIRB-affected transactions.
• Every FIRB-affected contract must include a condition making the contract conditional on receiving foreign investment approval. The contract should not go unconditional until that approval is in hand.
• FIRB approval and Queensland AFAD are separate obligations. A buyer may be exempt from one but not the other, and the cost implications of AFAD at 8% of dutiable value are significant enough to affect buyer budgets.
• Fee structures and policy settings have changed materially since 2023 and continue to evolve. Always direct buyers to ato.gov.au and foreigninvestment.gov.au for current figures, and encourage them to engage a conveyancer or property lawyer before exchanging.

The established dwelling ban in particular has reshaped the foreign buyer conversation in Queensland. The clients who previously purchased resale apartments to live in while on skilled or partner visas no longer have that pathway. For developers and project marketers, the new dwelling pipeline remains open — but agents must ensure their buyers understand the distinction clearly before any offer is made.