What happens if a FIRB application is refused or withdrawn?

How a decision can come out

Treasury's overview says the Treasurer's decision on an application will be one of three things: no objection, allowing the proposal to proceed; no objection with conditions that must be met; or an order prohibiting the proposal.

A prohibition order is the legal form of a refusal. The Act lets the Treasurer make one if satisfied that a proposed significant action would be contrary to the national interest. For residential land, Treasury's guidance says applications are generally considered against the principle that foreign investment should add to Australia's housing stock. That is why new dwellings and vacant land are generally approved and established homes are not, subject to the ban described in what foreigners can buy.

What the published figures show

Treasury's quarterly reports list residential real estate outcomes. The report for January to March 2026, published on 29 May 2026, is the latest checked.

The report's residential tables exclude variations and applications where the outcome was exempt, and it has no separate row for refusals, so the table cannot show applications that were declined in other ways. Treasury's glossary says proposals are withdrawn for a variety of reasons: the investor chose not to proceed or deferred a purchase, was unsuccessful in a competitive tender process, the target was withdrawn from the market, the investor consortium changed, concerns were identified by the Treasurer, or the proposal was lodged incorrectly.

Established homes

The ban on foreign purchases of established dwellings runs from 1 April 2025 to 30 June 2029, with narrow exceptions such as redevelopment adding at least 20 dwellings, commercial-scale housing and housing for Pacific island and Timor-Leste workers. Treasury's guidance says all such applications are considered case by case. An application for an ordinary established home to live in does not fit an exception.

If you withdraw: the application and the fee

Section 136 of the Act deals with withdrawing applications and notices, so ask the ATO how to withdraw one. The fee is a separate question, and Treasury's guidance on fee waivers and remissions is the reference point:

• Unlikely to be waived: where your application is not approved, you changed your mind, you withdrew, the investment did not proceed, or you paid a lower price than expected.
• Likely to be waived: where you withdrew a previous application and lodged one that is substantially the same, or where you apply to vary an approval only to update the description of the land, such as a lot number.
• Refunded: an overpayment, and the fee where the Treasurer considers you did not need to apply and you do not wish to apply voluntarily.
• Not available: the partial refund Treasury offers for unsuccessful competitive bids does not cover residential auctions.

Treasury says waiver decisions are case by case and final. They are not reviewable under the ADJR Act or the Administrative Review Tribunal Act, though common law judicial review may be open. For more on refunds, see whether the fee is refundable.

If the decision goes against you

The Act has a provision headed "ART review of decisions" (section 130A), which provides for review by the Administrative Review Tribunal. Whether it reaches a particular decision about a home, and whether any other legal avenue is open, is a question for a lawyer who works in foreign investment. Decisions on fee waivers are a separate matter, covered above.

If the timing goes wrong

Three situations come up:

• The purchase went ahead without approval. That is a breach. Treasury says a person who acquired residential land without approval may apply for retrospective approval, assessed under the national interest test at the time of application. For established dwellings, applications made on or after 1 April 2025 are assessed against the ban. Treasury's own example is a temporary resident who gave notice on 2 April 2025 of an earlier purchase: the application was not approved and the person may be required to sell and pay a penalty. Treasury's fee guidance says the fee for a disclosure of an action already taken is worked out as if the action were taken when the Treasurer gives an order or no objection notification, and is due within 30 days after. See penalties.
• The approval period ran out. A no objection notification usually gives 12 months to take the action. An application to extend must be made 2 months before the period ends, so ask the ATO what applies if it has already ended.
• The contract's deadline passed first. The contract's own end date for the FIRB condition decides whether either side can walk away. See FIRB approval in the contract of sale.

Treasury and the ATO encourage anyone who thinks they have breached the law to contact the ATO as soon as possible, and say lower penalties may apply if a breach is self-reported.

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.