What an investor can buy
| Property | Foreign investor position |
|---|---|
| New dwelling, including off the plan | Allowed with approval, or with a developer's exemption certificate |
| Near-new dwelling (sold by the developer but never settled, not occupied for more than 12 months) | Treated like a new dwelling |
| Vacant residential land | Allowed with approval and a requirement to build |
| Established dwelling for redevelopment adding at least 20 dwellings | Exception, including build-to-rent developments |
| Established dwellings at commercial scale (existing build-to-rent, retirement villages, aged care, student accommodation) | Exception, assessed case by case |
| Any other established dwelling, such as a resale house or apartment | Banned until 30 June 2029 |
The full list of exceptions is in the established home ban guide.
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No cap on numbers, and few conditions on use
Treasury's guidance says there is no limit on the number of new dwellings a foreign person can acquire, and no limit on the number of vacant land parcels bought for residential development. Approval for a new dwelling is not usually subject to conditions about how it is used, so it can be lived in or rented out. Vacant land is different: approval is generally conditional on completing construction within four years and not selling the land before that.
Every purchase still needs its own approval, unless an exemption certificate covers it. There are two kinds:
- A developer's certificate. A developer whose project has 50 or more dwellings (other than townhouses) and development approval can apply for a certificate covering sales to foreign buyers. A foreign buyer then does not generally need their own approval. The certificate generally covers purchases of up to $3 million per foreign person in the one development. Treasury's example: a buyer of a $2 million apartment who later wants a second for $1.3 million in the same project passes the $3 million line at $3.3 million, and needs separate approval for the second.
- A buyer's certificate. An investor can apply for a certificate for one new dwelling or one vacant block in a stated state or territory, with a value cap, valid for 12 months. It suits buyers who may be outbid before they succeed.
The guidance tells buyers who rely on a developer's certificate to check that it covers what they intend to buy. See the exemption certificate guide.
Running costs that arrive after the purchase
Application fee. A fee is payable on every application. The fees page has the schedule.
State duty and land tax surcharges. Rates for three states, as read from the revenue offices in October 2026 (Victoria's land tax surcharge is not shown because its rules are on the State Revenue Office's pages):
| State | Extra duty on purchase | Annual land tax surcharge |
|---|---|---|
| New South Wales | 9% of dutiable value | 5% of land value, no tax-free threshold |
| Victoria | 8% foreign purchaser additional duty | Absentee owner surcharge, set out by the State Revenue Office |
| Queensland | 8% on top of transfer duty | 3% of taxable value above $350,000 |
Other states and territories differ. The state surcharge pages cover each.
Register and report. The ATO says a foreign owner of residential property registers it within 30 days of settlement, lodges a vacancy fee return each year and lodges an Australian income tax return to declare rental income.
Vacancy fee. The ATO says a vacancy fee is payable when a residential property is vacant for 183 days or more in one vacancy year, and that the fee for vacancy years starting from 9 April 2024 is double the application fee. See the vacancy fee guide.
Compliance is the larger risk
Treasury's compliance guidance says that its approach and the ATO's include audits to target land banking by foreign investors, meaning land that is not put to productive use within the development conditions. For acquiring residential land without notifying first, the compliance guidance lists a maximum criminal penalty of 10 years' imprisonment (or a fine, or both) and a maximum civil penalty that is the greatest of double the capital gain, 50% of the consideration or 50% of the market value. Lower infringement notice penalties may apply if a breach is self-reported.
Keep reading
- Australia's ban on foreign buyers of established homes: dates, exceptions and what is still allowed
- What are the FIRB rules for buying off the plan as a foreign buyer?
- Can a foreign company or trust buy a house in Australia?
- The total cost of buying property in Australia as a foreign buyer
- What counts as occupied for the vacancy fee, and which homes are exempt?
- Buying property with a citizen or resident partner: what changes for the foreign buyer
Frequently asked questions
Does the ban apply to investment properties?
Yes. The ban covers any purchase of an established dwelling by a foreign person, whether to live in or to rent out. The exceptions are the redevelopment, commercial-scale and PALM worker housing categories set out in Treasury's guidance. A new dwelling or vacant land is still available with approval.
Can a foreign investor buy a resale apartment in a new building?
It depends on whether the apartment still counts as new. Treasury's definition requires that a dwelling has not previously been sold as a dwelling and has not been occupied. A resale from a first owner may not qualify. A lawyer can check the history of the specific apartment before signing.
Can a foreign investor buy through a company or trust?
A company or trust can itself be a foreign person, and the same approval rules and the ban apply to it. State surcharge tests for entities differ by state: New South Wales uses 20% and 40% tests, Queensland looks at a foreign controlling interest of at least 50%, and Victoria has its own tests on the State Revenue Office's pages. See foreign companies and trusts.
Can a foreign investor rent out a new dwelling straight away?
Treasury says approval for a new dwelling is not usually subject to conditions about its use, so renting is possible. The annual vacancy fee return still applies, and the ATO says the fee is avoided when the property is occupied or rented out for 183 or more days in a 12-month period.
Sources
- Guidance Note 6: Residential Land, version 5 (1 July 2026), Treasury Foreign Investment website
- Types of property a foreign person can buy, Australian Taxation Office
- Apply to buy residential property as a foreign person, Australian Taxation Office
- Steps to buying Australian residential property, Australian Taxation Office
- Vacancy fee return for foreign owners, Australian Taxation Office
- Guidance Note 14: Compliance and Penalties (Residential Land), version 4, Treasury Foreign Investment website
- What is surcharge purchaser duty?, Revenue NSW
- What is surcharge land tax?, Revenue NSW
- Understanding foreign purchaser additional duty, State Revenue Office Victoria
- Changes to foreign purchases of established dwellings, Treasury Foreign Investment website
- Assessing and calculating AFAD, Queensland Revenue Office
- Land tax for absentees, Queensland Revenue Office
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.