Civil penalties
For buying residential land without notifying, or before approval, the maximum civil penalty is the greatest of:
- double the capital gain made, or that would be made, on disposing of the interest;
- 50% of the purchase price; or
- 50% of the market value of the interest.
Criminal offences
Failing to give notice, or taking action before approval, is also a criminal offence. The maximum is 10 years’ imprisonment, or 15,000 penalty units, or both. For a corporation the maximum is 150,000 penalty units. A penalty unit is $364 for offences on or after 1 July 2026, so the individual maximum is $5.46 million.
Infringement notices
| Tier | Individual | Corporation |
|---|---|---|
| Tier 1: breach you report yourself | 12 units ($4,368) | 60 units ($21,840) |
| Tier 2: land worth less than $5 million | 60 units ($21,840) | 300 units ($109,200) |
| Tier 3: land worth more than $5 million | 300 units ($109,200) | 1,500 units ($546,000) |
Dollar figures are our conversion of Treasury’s penalty units at $364 a unit.
Forced sale
The Treasurer can make a disposal order where a foreign person’s holding of residential land without approval is contrary to the national interest. Land will generally have to be sold within three months. Treasury’s own example of a temporary resident who bought an established home to live in without approval says they may be required to sell and to pay a penalty.
Other breaches
- Breaking a condition, for example not finishing construction within four years: criminal and civil penalties on the same scale as above.
- Not lodging a vacancy fee return: 500 penalty units ($182,000).
- Not giving a register notice: 250 penalty units ($91,000).
- False or misleading information in an application: civil penalties and, under the Criminal Code, up to 12 months’ imprisonment.
- Schemes to avoid the rules can be prohibited or unwound, and third parties who knowingly help can be penalised.
Enforcement is real
In February 2026 Treasury reported that the Federal Court had ordered $14 million in penalties against two foreign investors who failed to comply. The ATO has also obtained civil penalties against residential land-bankers, and the 2025 announcement of the ban came with extra funding for ATO enforcement.
Reporting a breach yourself
Government guidance says lower penalties may apply if a breach is self-reported. Since 1 April 2025, retrospective approval for an established dwelling will generally not be given.
Frequently asked questions
What is the penalty for buying property without FIRB approval?
The maximum civil penalty is the greatest of double the capital gain, 50% of the price or 50% of the market value. Criminal penalties go up to 10 years in prison, and the property can be ordered sold.
Can I be forced to sell my property?
Yes. The Treasurer can issue a disposal order, and the land generally has to be sold within three months.
Are penalties lower if I tell the government myself?
Government guidance says lower penalties may apply where a breach is self-reported.
How much is a penalty unit?
$364 for offences on or after 1 July 2026.
Sources
- Treasury — Guidance Note 14: Residential compliance (v4, March 2025)
- Foreign Acquisitions and Takeovers Act 1975 (legislation.gov.au)
- Crimes (Amount of a Penalty Unit) Instrument 2026
- Treasury — Penalties ordered against foreign investors for non-compliance (6 February 2026)
- Foreign Investment — Residential compliance
- ATO — Foreign investment in residential assets: our compliance approach
- Treasurer’s media release, 16 February 2025 — original ban announcement
Penalty-unit figures checked 5 October 2026. Dollar amounts are our multiplication of penalty units by $364.
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.