Why a home has a zero dollar threshold
Under the Act, buying land is a notifiable action only if the threshold test is met. For some kinds of land the regulations set no value, so the test is always met. Section 52 of the Regulation ("Land") sets the land thresholds, and Treasury's table gives residential land a threshold of $0 or more.
Treasury's residential guidance treats vacant land as residential land when fewer than 10 dwellings could reasonably be built on it and it is not used wholly and exclusively for primary production. Land with a dwelling on it is dealt with as a new or established dwelling. A low-priced block of vacant land can therefore be residential land.
Treasury's 2026 table, effective 1 January 2026, shows how residential land compares with other land types:
| Land type | Threshold from 1 January 2026 |
|---|---|
| Residential land | $0 or more, all investors |
| National security land | $0 or more, all investors |
| Vacant commercial land | $0 or more, all investors |
| All land held by foreign government investors | $0 or more |
| Developed commercial land | More than $1,498 million for private investors from certain free trade agreement partners, more than $347 million for other private investors (lower for sensitive land) |
| Agricultural land | More than $15 million cumulative for most private investors, higher for investors from a few partners |
Treasury indexes thresholds each 1 January, except the $15 million agricultural figure and one agricultural figure for Thailand. A $0 threshold does not move.
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What counts as acquiring an interest
Approval is needed before acquiring an interest in Australian land, and the Act defines that term broadly:
- a legal or equitable interest in land, such as ownership
- entering an agreement to acquire such an interest, although where the agreement is conditional on approval the action is taken only once it becomes binding
- shares in a land corporation or units in a land trust
- a lease or licence that is reasonably likely to last more than five years, counting renewals
Most shorter leases fall outside the definition, so an ordinary residential tenancy is generally not an acquisition of an interest in land. Buying with others does not remove the need to check: the ATO's application asks whether the buyer is a sole buyer, joint tenants or tenants in common.
Purchases that need approval, and those that do not
| Situation | Approval needed? |
|---|---|
| Foreign person buys a new dwelling | Yes. If the developer holds an exemption certificate that covers the dwelling, the buyer generally does not need their own approval |
| Foreign person buys off the plan | Yes, with the same developer certificate rule, which generally covers up to $3 million of dwellings per buyer in one development |
| Foreign person buys vacant residential land | Yes, and approval is generally conditional on building within four years |
| Foreign person buys an established dwelling | Banned from 1 April 2025 to 30 June 2029, with limited exceptions that themselves need approval |
| Australian citizen not ordinarily resident in Australia | No, regulation 35 |
| Holder of a permanent visa, or a special category visa (or eligible New Zealand citizen) | No, regulation 38(2) |
| Foreign person buying as joint tenants with a spouse or de facto partner who is a citizen or holder of one of those visas | No, regulation 38(3) |
| Timeshare interest of no more than four weeks a year | No, regulation 38(4) |
The property rules are covered on the what you can buy page and the exempt groups on the New Zealand citizens and expat pages. The joint tenant exemption is written for interests held as joint tenants. A couple buying as tenants in common should confirm their position with a conveyancer.
Timing against the contract
Treasury's guidance says that where an agreement is subject to foreign investment approval before taking effect, the action is taken only when the agreement becomes binding. That is why buyers use contracts conditional on approval, and Treasury's residential guidance says a foreign person can enter a contract that is conditional on foreign investment approval.
The ATO's application page words it more tightly: it says that before you enter any contract you need the ATO to grant approval or an exemption certificate. It also says a certificate can be applied for after signing if the contract is still conditional. The two statements differ, so timing is something to settle with a conveyancer before bidding or signing. How a FIRB condition works in a contract explains the usual wording.
Keep reading
- Who counts as a foreign person for FIRB?
- What are the FIRB approval requirements for buying a home?
- Australia's ban on foreign buyers of established homes: dates, exceptions and what is still allowed
- How does a FIRB condition work in a contract of sale?
- Can foreign investors buy investment property in Australia in 2026?
- The FIRB Act and regulations: which laws apply to foreign home buyers?
Frequently asked questions
Is there a minimum price below which approval is not needed?
No. The threshold for residential land is $0, so price does not decide whether approval is needed. Price does affect the application fee and, for new dwellings, whether a developer's certificate covers the purchase. The fees page shows how fees step up with price.
Do I need approval to rent a home in Australia?
Generally not. The Act's definition of an interest in land leaves out most leases and licences, though one reasonably likely to run beyond five years counts. Anyone planning a long lease with renewal options should check the position with a lawyer first.
Does buying through a company or trust change the answer?
It can make the entity a foreign person. A company or trust is generally a foreign person if one foreign person holds a substantial interest (usually 20%) or two or more hold an aggregate of 40%. The foreign person definition covers this.
What happens if I buy without approval?
The Act has offences and civil penalties for taking a notifiable action without notice. Treasury's guidance says lower penalties may apply if a breach is self-reported, and that retrospective approval can be applied for, although applications for established dwellings received from 1 April 2025 will generally not be approved. Retrospective approval does not remove liability for the original breach. The penalties page covers the consequences.
Sources
- Monetary thresholds applicable from 1 January 2026, Treasury
- Foreign Acquisitions and Takeovers Regulation 2015, Federal Register of Legislation
- Foreign Acquisitions and Takeovers Act 1975, Federal Register of Legislation
- Guidance Note 6: Residential land, version 5, Treasury
- Guidance Note 1: Overview, version 3, Treasury
- Guidance Note 2: Key concepts, version 5, Treasury
- Guidance Note 14: Compliance and penalties (residential land), version 4, Treasury
- Residential property application for foreign investors, ATO
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.