FIRB approval fees and process: what foreign buyers need to know

Current fee schedule

FIRB application fees are set by regulation and are tiered based on the property's purchase price or market value, and by property type (Foreign Investment in Australia, Schedule of Fees, version 8, effective 1 July 2026).

For a new dwelling or vacant land valued at AUD 1 million or less, the fee is AUD 15,600. Above AUD 1 million and up to AUD 2 million, it is AUD 31,300. Above AUD 2 million and up to AUD 3 million, it is AUD 62,600. Fees continue to increase in tiers for higher-value property — check the current Schedule of Fees before applying.

Established dwellings carry a separate, much higher schedule, because the government's policy is to discourage foreign purchases of existing housing stock: AUD 46,800 for a property valued at AUD 1 million or less, rising to AUD 93,900 above AUD 1 million up to AUD 2 million. This only matters where one of the narrow exceptions to the established-dwelling ban applies (see the guide on buying property in Australia as a foreigner) — an individual buying a home to live in generally cannot use this pathway at all while the ban is in force.

The fees are non-refundable. If your application is refused, if you decide not to proceed with the purchase, or if you are outbid at auction after receiving approval, the fee is not returned. This makes it important to be reasonably certain about the property before applying.

How to apply

Applications are submitted online through the Foreign Investment in Australia website. The process requires creating an account, completing the application form, paying the fee, and submitting supporting documents.

The application form asks for your personal details (name, date of birth, citizenship, passport number, visa details), the property details (address, type of property, purchase price or expected price), the intended use of the property (residence, investment, development), details of any co-purchasers or related parties, and supporting information about your financial arrangements.

Supporting documents typically include a copy of your passport, your current visa grant notice, and the contract of sale or draft contract (if available).

The application must be submitted before you sign a binding contract for the property. For private sales, this means applying before exchanging contracts. For auctions, this means applying before the auction date. Signing a contract without FIRB approval is a breach of the foreign investment rules, even if you intend to apply afterwards.

Processing times and decision outcomes

The Treasurer (or their delegate) has a statutory period of up to 30 days to make a decision on a residential property application. This can be extended by up to an additional 90 days for complex cases.

Applications involving related-party transactions, corporate structures, or properties with mixed-use elements are more likely to take longer than the standard case of a foreign person buying a single new dwelling or a block of vacant land.

The possible outcomes are approval with conditions (the standard outcome for compliant applications), a no-objection notification (effectively approval with standard conditions), rejection (uncommon for standard residential applications but possible if the application does not meet the rules), or a request for further information (which extends the processing time).

Standard conditions attached to approval

FIRB approval for residential property purchases typically comes with conditions. The specific conditions depend on the type of property.

For new dwellings, approval is not usually subject to any condition on how the property is used afterwards — it can be lived in or rented out.

For vacant land, approval is generally conditional on construction of a dwelling being completed within four years of approval, and on the land not being sold before construction is finished (Guidance Note 6: Residential Land). Treasury has said it will take enforcement action against non-compliance with this condition.

Where an established dwelling is bought under one of the ban's narrow exceptions, the conditions are specific to that exception (for example, the redevelopment or housing-supply commitment that justified the approval) and are set out in the approval itself, together with reporting obligations to the ATO.

The vacancy fee

Foreign owners of residential property in Australia are subject to the annual vacancy fee if the property is not genuinely occupied or available for rent for at least 183 days in a 12-month period. The vacancy fee is generally set at the same amount as the FIRB application fee paid for the property — meaning a foreign owner of a new dwelling valued at AUD 1 million who leaves it vacant pays around AUD 15,600 per year in vacancy fees.

The vacancy fee is administered by the ATO, not the FIRB. Foreign property owners must lodge an annual vacancy fee return with the ATO, declaring whether the property was occupied or genuinely available for rent. Penalties apply for failing to lodge the return or for providing false information.

The vacancy fee is designed to discourage foreign buyers from purchasing Australian property and leaving it empty, which is seen as reducing housing supply for Australian residents. For temporary visa holders using the property as their residence, the vacancy fee typically does not apply because the property is occupied.

Compliance and enforcement

The government has increased enforcement of foreign investment rules in recent years. The ATO administers compliance on behalf of the FIRB and conducts audits of foreign property ownership.

Breaching FIRB conditions — including failing to sell when required under an established-dwelling exception, or failing to complete construction on vacant land within the approved timeframe — can result in infringement notices with civil penalties, forced divestiture orders requiring the sale of the property, criminal prosecution in serious cases (penalties include fines and imprisonment), and being barred from future foreign investment approvals.

The government has also introduced a voluntary disclosure framework that allows foreign buyers who have inadvertently breached the rules to come forward and regularise their position, potentially avoiding the most severe penalties. However, voluntary disclosure does not guarantee immunity from consequences.

Practical tips for the FIRB process

Apply early. The 30-day processing period means you should submit your application as early as possible, particularly if you are buying at auction or if there is a settlement date constraint. Applying the day before an auction is risky — processing delays could leave you without approval.

Be specific about the property. Approval is granted for a specific property at a specific address. If you change your mind and want to buy a different property, you need a new application with a new fee.

Understand the fee is non-refundable. Factor the FIRB fee into your total purchase budget alongside stamp duty, legal fees, and any surcharges. For a AUD 1 million property, the FIRB fee, stamp duty surcharge, and standard stamp duty can add over AUD 100,000 to the purchase price in some states.

Keep approval documentation. You will need to provide evidence of FIRB approval to your conveyancer or solicitor as part of the settlement process. Some lenders also require FIRB approval documentation before disbursing a mortgage to a foreign buyer.

Set reminders for ongoing obligations. If you are subject to vacancy fee returns, condition reporting, or a sale deadline, set calendar reminders well in advance to ensure compliance.

Can I apply for FIRB approval from overseas?

Yes. The online application can be submitted from anywhere in the world. You do not need to be in Australia to apply. This is relevant for non-resident foreign nationals buying new dwellings before moving to Australia.

What if my FIRB application is rejected?

Rejection is uncommon for standard residential applications that meet the rules. If your application is rejected, the fee is not refunded. You can reapply for the same or a different property, but you must pay a new application fee. If you believe the rejection was in error, you can seek a review.

Do I need FIRB approval if I'm buying with my Australian citizen spouse?

Generally, yes — if any party to the purchase is a foreign person, FIRB rules apply to the entire transaction. However, concessions may be available depending on the ownership structure. Consult a property lawyer for your specific situation.

Is the FIRB fee tax-deductible?

For investment properties, the FIRB fee may be deductible as part of the cost base for capital gains tax purposes. For properties used as your residence, it is not deductible. Consult a registered tax agent for advice specific to your situation.

Does FIRB approval guarantee I can get a mortgage?

No. FIRB approval is a regulatory permission to acquire the property — it is entirely separate from a lender's decision to provide a mortgage. You can have FIRB approval and still be refused a loan, particularly as lending to foreign buyers has become more restrictive in recent years.