Certificate for an individual buyer
Treasury’s residential land exemption certificate (other than established dwellings) is for a person who wants to buy one new dwelling or one vacant lot without having identified the property yet.
- What it coversOne new or near-new dwelling, or one vacant residential lot
- WhereIn the state or territory named in the certificate
- PriceNo more than the value stated in the certificate
- ValidityGenerally 12 months from approval
- ReuseOnce used for a purchase it cannot be used again
- FeeThe same as an ordinary application for that price band
Bidding above your limit
Treasury’s own example is a certificate for $1 million used on a $1.3 million purchase. The buyer has breached the law and may face significant penalties. Treat the price in your certificate as a hard ceiling, including at auction.
Why it matters at auction
An auction sale is unconditional, so you need approval or a certificate before you bid. A certificate suits people who may be outbid several times, because it is not tied to one property. It does not give you a way to buy an established home during the ban. It covers new dwellings and vacant land only.
The ATO also says you can apply for a certificate after signing a contract, provided the contract is still conditional.
Certificate held by a developer
Developers of larger projects can apply for a new dwelling exemption certificate (or a near-new dwelling certificate). If the home you are buying is covered, you do not need to make your own application.
- The developer pays an initial fee of $67,400 (2026–27), plus a reconciliation fee per foreign sale equal to what the buyer would have paid on their own.
- No more than 50% of the dwellings can be sold to foreign persons under the certificate.
- No more than $3 million of dwellings can be sold to any one foreign person in a development.
- The developer must market the dwellings in Australia, give each foreign buyer a copy of the certificate and report every six months.
Treasury’s guidance says buyers should check the certificate to make sure it covers their purchase. If your total spend goes above the $3 million limit in one development, you need your own approval for the rest. Ask the developer or agent for a copy before you sign.
Buyers under a developer’s certificate still have obligations after settlement. They must register the property, and they must lodge an annual vacancy fee return.
Established dwellings
A third kind of certificate covers established dwellings, but only in the limited cases where an exception to the ban applies, such as a Pacific worker accommodation provider buying at auction.
Frequently asked questions
What is an exemption certificate?
A form of approval that lets a foreign person, or a developer’s foreign buyers, buy residential property without a separate application for each purchase.
Can foreigners buy at auction in Australia?
Yes, for a new dwelling or vacant land, if they hold approval or a residential exemption certificate before bidding. Foreign persons cannot buy established homes at auction during the ban, except in limited exception cases.
How long is an exemption certificate valid?
Generally 12 months from the date of approval, for one purchase, in the state or territory named.
What if the developer’s certificate does not cover me?
You would need your own approval before the purchase becomes binding. Check the certificate before you sign.
Does a certificate take longer than a normal application?
Treasury’s guidance says exemption certificates generally take longer to process than a no objection notification.
Sources
- Treasury — Guidance Note 6: Residential land (v5, 1 July 2026)
- Treasury — Guidance Note 9: Exemption certificates (v4, 27 May 2025)
- Treasury — Guidance Note 10: Fees (v12, 19 September 2026)
- ATO — Apply to buy residential property as a foreign person
- ATO — How to apply or vary an approval to buy residential property
Checked 5 October 2026.
firbapproval.com.au is an independent guide. It is not affiliated with, endorsed by or connected to the Foreign Investment Review Board, the Australian Treasury or the Australian Taxation Office. We do not lodge or process applications. Applications are made to the ATO. General information only, not legal, tax, migration or financial advice.