Can foreigners buy land in Australia? The vacant land rules and the build condition

Which land needs approval

Treasury's monetary thresholds table, current from 1 January 2026, sets out when a foreign person needs approval for different kinds of land:

Foreign government investors have a $0 threshold for all investments. The thresholds are indexed each 1 January, except for the $15 million agricultural figure and the $50 million figure for agricultural land for Thai investors. See when approval is required for more.

What counts as vacant residential land

Treasury's residential land guidance note says land is vacant residential land if fewer than 10 dwellings could reasonably be built on it and it is not used wholly and exclusively for a primary production business. The ATO describes vacant land as land with no substantive permanent building on it that can be lawfully occupied, and that generally has not previously had an established dwelling on it.

That last point matters. Land that previously had a dwelling on it is generally not treated as vacant land, and Treasury treats a single dwelling built to replace a demolished one as established. Those cases are subject to the rules for established dwellings, including the ban. A proposal that adds at least 20 dwellings is the main exception. The established home ban guide covers it.

The conditions that usually come with approval

If an application for vacant residential land is approved, Treasury's guidance says it will generally be approved subject to:

• the purchase price being no greater than the value stated in the approval;
• at least one residential dwelling being built on the land;
• construction of all dwellings being completed within four years from the date of notice of approval;
• evidence of completion being given to the Government within 30 days of being received; and
• no sale, transfer or other disposal of the land until construction of all dwellings is complete.

The four years run from the date of the notice of approval, not from settlement. As an illustration, a notice of approval dated 1 March 2027 would generally mean completion by 1 March 2031.

Treasury says a new dwelling is not usually subject to conditions about how it is used, so once the home is built the owner can generally live in it or rent it out. There is no limit on the number of vacant land parcels a foreign person can acquire. A fee is payable on every application, and the fees page sets out the amounts.

Buying before you have found the block

An exemption certificate lets a foreign person buy one title of vacant residential land, in the state or territory the certificate names, up to a stated value, without applying again for each block. The ATO says it can be valid for 12 months and that you can apply for one even after signing a contract, as long as the contract is still conditional on approval. Check the conditions of any certificate before relying on it. See exemption certificates.

If the land is not built on

Treasury and the ATO say they run audits aimed at land banking by foreign investors, and the residential land note says enforcement action will be taken over non-compliance with approval conditions.

The compliance guidance notes explain the penalty framework, including penalties for breaching a condition of approval, and the process for self-reporting a breach. A lawyer can advise on a specific situation.

State and tax points for land buyers

• The ATO says a foreign owner does not have to lodge a vacancy fee return while the land is vacant, but must lodge one once a dwelling is built.
• Revenue NSW applies surcharge purchaser duty to vacant land zoned for residential use. The State Revenue Office Victoria publishes its own rules on land for foreign purchaser additional duty. The Queensland Revenue Office includes vacant land on which a home will be built in its additional foreign acquirer duty. See the state surcharge pages.

Frequently asked questions

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.