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. The current fee schedule for residential property applications is as follows.

For properties valued at AUD 1 million or less, the fee is AUD 14,100. For properties above AUD 1 million to AUD 2 million, the fee is AUD 28,200. For properties above AUD 2 million to AUD 3 million, the fee is AUD 56,400. For properties above AUD 3 million to AUD 4 million, the fee is AUD 84,600. For properties above AUD 4 million to AUD 5 million, the fee is AUD 112,800. For properties above AUD 5 million, fees continue to increase in bands (FIRB).

For vacancy fee-related applications and established dwelling applications by temporary visa holders, additional fee structures may apply. Always check the current fees on the FIRB website, as they are indexed and updated periodically.

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 through the FIRB's online portal at firb.gov.au (FIRB). 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, the contract of sale or draft contract (if available), and evidence of your Australian residential address (for temporary visa holders claiming the established dwelling exemption).

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, but extensions are uncommon for standard residential applications.

In practice, straightforward applications — a temporary visa holder buying an established dwelling as their residence, or a non-resident buying a new dwelling — are often processed within 20–30 days. More complex applications (those involving related-party transactions, corporate structures, or properties with mixed-use elements) may take longer.

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 and the buyer's status.

For temporary visa holders buying an established dwelling, conditions typically include that the property must be used as the applicant's principal place of residence, the property must not be rented out (wholly or partially) while owned by the applicant, the property must be sold within a specified period (usually 90 days) after the applicant ceases to hold a valid temporary visa or leaves Australia permanently, and the applicant must report to the ATO if any of the conditions change.

For non-residents buying new dwellings, conditions typically include that the property may be rented out (new dwelling purchases are not subject to the residence requirement), vacancy fee obligations (discussed below), and reporting obligations.

For vacant land purchases, conditions include that construction of a dwelling must commence within 24 months of approval and must be completed within a reasonable timeframe. The land must not be left undeveloped.

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 equivalent to the FIRB application fee paid for the property — meaning a foreign owner of a AUD 1 million property who leaves it vacant pays AUD 14,100 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, renting out a property that is subject to a residence condition, or failing to commence construction on vacant land — 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.