What Is FIRB in Queensland Real Estate? Definition and Agent Guide
A foreign buyer calls your office about a Gold Coast apartment. They’re based in Singapore, they’re ready to move quickly, and they want to make an offer today. Before that offer goes anywhere near a contract, one question needs answering: has this person obtained FIRB approval? FIRB — the Foreign Investment Review Board — is the Commonwealth body that assesses applications from foreign persons seeking to purchase residential property in Australia. Without its approval, the transaction cannot legally proceed, and no amount of buyer enthusiasm changes that.
For Queensland agents, FIRB is not a peripheral compliance issue. It is a threshold condition that affects the structure of every contract involving a foreign buyer, the timing of the deal, and the financial exposure of your client. Understanding how it works — and how it intersects with Queensland-specific duties — is part of the job.
How FIRB Works in Queensland Real Estate
FIRB operates under the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA). In practice, the review process is carried out by the Foreign Investment Review Board. The Board does not make final decisions itself — it advises the federal Treasurer — but for practical purposes, its assessment determines whether an approval, known as a “no objection notification,” is issued or declined. If the assessment suggests the proposed action is not contrary to the national interest, a “no objection” notification will be issued.
Every foreign buyer must obtain approval from the Foreign Investment Review Board (FIRB) before purchasing residential property. The application is lodged through the ATO’s online portal and is accompanied by a fee calculated on the value of the property being acquired. The statutory timeframe of 30 days for making a decision will not start until the correct fee has been paid. In practice, straightforward residential applications are often resolved within that 30-day window, but complex cases or high-value transactions can take longer.
A point that frequently confuses buyers — and some agents — is that FIRB approval is granted for a category of purchase, not a specific property. When doing a FIRB application, it’s not for a specific property; it’s for a certain criteria. Say a buyer is in the up-to-$2 million range — if approved, they usually have up to 12 months to find the property that meets that criteria, so they don’t have to apply every time they are looking at a property. This matters significantly at open homes and auctions, where buyers sometimes assume that having approval for one price bracket automatically covers a higher bid — it does not. If a foreign person attends an auction where the bidding exceeds the value limit specified on their exemption certificate, that certificate will not be valid for a purchase price higher than the amount specified.
Who Qualifies as a Foreign Person
The definition under FATA is broader than many agents assume. The definition of foreign person under the Foreign Acquisitions and Takeovers Act 1975 (Cth) is very broad, generally encompassing: individuals who are not ordinarily residents of Australia; corporations in which foreign persons hold an aggregate interest of 20% or more; and trustees of trusts in which a foreign person or multiple foreign persons holds an aggregate substantial interest.
A buyer of residential land in Queensland may be a foreign acquirer if they fall into one of the following categories: a person who is not a permanent resident of Australia or an Australian citizen; a corporation where one or more persons holding a “substantial interest” is an individual not ordinarily resident in Australia; or a trust where a trustee of the trust is a foreign entity. When a buyer presents as an Australian-registered company or a discretionary trust, agents should not assume FIRB does not apply without proper legal confirmation.
What FIRB Approval Covers
New dwellings are generally permitted for foreign buyers. Vacant land is allowed, provided construction commences within four years. Established dwellings are typically restricted, with exceptions for redevelopment or if purchased by a temporary resident for use as a primary residence.
A significant development came into effect on 1 April 2025. From 1 April 2025 to 31 March 2027, foreign persons are banned from purchasing established dwellings. This is a Commonwealth-level restriction, separate from and additional to FIRB approval requirements. For Queensland agents listing established homes, this means the pool of eligible foreign buyers is effectively limited to those qualifying under narrow exemptions during this period. The ban does not affect new dwellings, vacant land, or off-the-plan purchases, which remain accessible to foreign buyers with appropriate FIRB approval.
Why FIRB Matters for Queensland Agents
FIRB is not your responsibility to administer, but it is absolutely your responsibility to identify. If you’re dealing with foreign buyers in Queensland property, you cannot afford to misunderstand 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 practical consequence of overlooking FIRB is a broken contract. Skipping this step can lead to severe penalties, including forced property divestment and significant fines. For your vendor, a deal that collapses because FIRB was not obtained — or because the buyer’s approval didn’t cover the final purchase price — means time lost, re-listing costs, and potential market perception damage. For you, it means a commission that evaporates and a professional reputation that takes a hit.
The standard REIQ contract for houses and residential land includes a buyer warranty regarding FIRB. There are standard terms in REIQ contracts which assume that a buyer warrants that FIRB approval does not apply to the contract. Where a buyer is a foreign person, that warranty cannot stand, and a FIRB special condition must be inserted instead. The special condition requires the buyer to apply to the FIRB for approval to purchase the property at the contract date and comply with all requests for further information, while the seller agrees to provide all information reasonably available that may be required by the FIRB, and the buyer agrees to notify the seller immediately upon becoming aware of the result.
The contract is made conditional on the buyer obtaining FIRB approval by the FIRB Approval Date; if approval is not obtained by that date, either party may terminate the contract by notice to the other party. Getting the FIRB Approval Date right is critical — too tight a timeframe leaves the buyer exposed; too long a window can leave the vendor in contractual limbo.
FIRB Fees: What Your Buyer Is Facing
FIRB application fees are dependent on the purchase price — the higher the price, the higher the fee, with residential land incurring the highest fee bracket. Fees for foreign investment applications are indexed each financial year on 1 July.
The fee changes that took effect from April 2024 were substantial. The minimum application fee payable for the acquisition of an established dwelling (those with a purchase price of $1,000,000 or less) increased from $14,100 to $42,300. For new dwellings, different (generally lower) fee tiers apply.
Beyond the upfront application fee, foreign buyers face an ongoing annual vacancy fee obligation. 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. A FIRB vacancy fee, if payable, will generally be equal to the FIRB application fee originally paid by the foreign investor to obtain approval to purchase the property. For vacancy years starting 9 April 2024, the fee will be double the foreign investment application fee. The compounding effect of tripled application fees plus doubled vacancy fees means the financial consequences of leaving a property idle are now very significant.
FIRB and Queensland’s Additional Tax Obligations
FIRB approval and Queensland’s Additional Foreign Acquirer Duty (AFAD) are two entirely separate obligations — one federal, one state — but they apply simultaneously to the same transaction. Agents working with foreign buyers must be fluent in both.
AFAD is an extra 8% of stamp duty that applies to transactions that are liable for transfer duty, landholder duty or corporate trustee duty. The Queensland Government increased the rate of AFAD from 7% to 8% from 1 July 2024. AFAD is levied on foreign buyers of residential property in Queensland. Separately, from July 2024, the Queensland Government also increased the surcharge rate of land tax applied in addition to land tax rates for foreign companies, trustees of foreign trusts and absentees, from 2% to 3%.
The cumulative cost impact on a typical foreign buyer transaction in Queensland is substantial. Consider a foreign person purchasing a new Brisbane apartment for $1.2 million. They face a FIRB application fee (indexed, based on the property value), AFAD at 8% of the dutiable value on top of the standard transfer duty, and ongoing vacancy fee exposure if the property is not occupied or available for rent for at least half the year. Together, AFAD and FIRB can add tens of thousands of dollars to a transaction or stop it altogether.
Post-Settlement Registration Requirements
FIRB approval does not end an overseas buyer’s compliance obligations. As of 1 July 2023, significant changes to the Foreign Acquisitions and Takeovers Act 1975 (Cth) came into effect. The introduction of the new Register of Foreign Ownership of Australian Assets brings forth additional reporting obligations for foreign persons involved in property transactions.
Foreign buyers must register their property purchase with the ATO’s Register of Foreign Ownership of Australian Assets within 30 days of settlement using the ATO’s online system. Agents should ensure their foreign buyer clients are aware of this post-settlement obligation — failure to comply carries its own penalties.
Change of status after purchase also carries obligations. If a buyer’s status changes within three years of purchase — for example, if they become a foreign corporation or foreign trust trustee — they must notify the Commissioner of State Revenue within 28 days. Failure to do so results in penalty duties and interest charges.
Exemptions Worth Knowing
Not every overseas-connected buyer requires FIRB approval. Understanding the principal exemptions helps agents identify when the standard buyer warranty in the REIQ contract can remain intact.
If a foreign person is purchasing a property with an Australian citizen or permanent resident, or a New Zealand citizen, as joint tenants, and they are in a spousal relationship, then they are exempt from needing FIRB approval.
FIRB is also not required if the real estate to be acquired is a new (or near-new) dwelling purchased from a developer that holds a new (or near-new) dwelling exemption certificate allowing them 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 to determine if it covers their intended purchase.
New Zealand citizens with a subclass 444 visa may be exempt from FIRB and AFAD in certain cases. Temporary residents occupy a middle ground: temporary residents may buy one established dwelling, but only as their primary residence. This is the primary exception to the established dwelling ban currently in effect.
Developers selling off-the-plan in Queensland need to understand the developer exemption certificate regime. Property developers applying for a New or near-new dwelling exemption certificate must pay an initial application fee of $65,200 for the 2025 to 2026 financial year. Developers are then required to report the sales of new or near-new dwellings every six months, with a separate fee per sale payable for each dwelling sold to a foreign person under the certificate. Agents working on large off-the-plan projects should confirm at the outset whether the developer holds this certificate and what price threshold it covers.
What Queensland Agents Need to Know About FIRB
The risk points for agents cluster around three moments: before the contract, in the contract, and after exchange.
Before the contract, the most important step is identifying buyer status early. Do not wait until a contract is being drafted to ask whether the buyer is a foreign person. Ask at first meaningful contact. If the answer is yes — or unclear — advise the buyer to obtain FIRB approval or confirm existing approval before proceeding. FIRB approval must usually be obtained before entering into a contract if the buyer is foreign. Alternatively, the contract must be structured as conditional on approval being obtained.
Never sign an unconditional contract on behalf of a foreign buyer without confirming FIRB approval is already in place and that it covers the specific property type and price. A foreign investor signing an unconditional contract for an established property unaware that FIRB approval was required is a scenario that has caused significant losses for buyers — and agents. Your obligation is not to provide legal advice, but it is to flag the issue clearly and direct the buyer to their solicitor or conveyancer before exchange.
In the contract, ensure the FIRB special condition is drafted correctly. The FIRB Approval Date must be realistic — 30 days is a minimum guide, with additional buffer advisable for complex applications or applications lodged near the end of a financial year when ATO processing volumes tend to increase. Ensure the condition is drafted to allow either party to terminate cleanly if approval is not obtained, with the deposit to be refunded in full.
After exchange, keep track of the FIRB Approval Date. If it is approaching without resolution, your buyer’s solicitor needs to know immediately. Failure to obtain approval by the condition date — and failure to take appropriate action — can leave the contract in an uncertain state that benefits neither party.
Trust and Corporate Structures Require Scrutiny
Foreign investment obligations are not limited to individual buyers. Agents should not assume that a buyer who is an Australian-registered company or trust has no FIRB obligations. The way a purchase is structured 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.
Where there is any doubt about the buyer’s structure, refer them to legal advice before contract. The REIQ contract warranty regarding FIRB should not be used as a substitute for actual due diligence on buyer status.
The Auction Complication
Auctions create particular risk with foreign buyers. An unconditional contract is formed at the fall of the hammer, and there is no cooling-off period available for the buyer to sort out FIRB approval after the fact. FIRB approval must usually be obtained before entering into a contract if the buyer is foreign. For auction campaigns, advise any potential foreign buyer to have FIRB approval in place before bidding, to confirm their approval covers the expected price range, and to understand that exceeding the price limit on an exemption certificate invalidates that certificate for the purchase.
The agent running the auction has no power to pause the process for a foreign buyer who wins but has not sorted their compliance. Prevention — through early identification and communication — is the only workable approach.
What This Means for Queensland Agents
FIRB sits at the intersection of federal law, state duty obligations, and the standard REIQ contract — and it has teeth. The consequences of getting it wrong are not technical oversights; they are broken contracts, potential divestment orders, and significant financial loss for buyers who were not properly informed.
Your role is not to advise on FIRB law, and you should not attempt to do so. Your role is to identify the issue early, flag it clearly, ensure the contract reflects the buyer’s status accurately, and direct all parties to appropriate legal advice before exchange. Given the complexity of foreign buyer regulations and the significant financial implications of non-compliance, professional legal and tax advice is essential throughout the property purchase journey. The penalties for mistakes can be severe, including forced sales and substantial fines.
The regulatory environment for foreign residential buyers in Queensland has tightened significantly since 2023. The two-year ban on purchasing established dwellings, the tripled FIRB application fees for established properties, the doubled vacancy fees, and the increase in AFAD to 8% — these changes collectively alter the economics and the legal landscape of every transaction involving a foreign buyer. Agents who treat FIRB as a box-ticking exercise rather than a substantive threshold condition will eventually pay for that attitude with a collapsed deal.
Know your buyer’s status before you open the contract. Make the FIRB special condition routine whenever it is required. Keep the Approval Date honest. And always, without exception, ensure your foreign buyers have qualified legal representation in place before any contract is signed.