In short: Foreign persons, including most temporary visa holders, must obtain approval under the Foreign Acquisitions and Takeovers Act 1975 (Cth) before buying residential property in Australia. New dwellings and vacant land to build on are generally approved with conditions. Established homes are, at the time of writing, subject to a federal ban on foreign purchases running to 30 June 2029, with limited exceptions. Citizens and permanent residents do not need approval.
FIRB approval is a federal step that sits before the Victorian contract, duty and loan process, and it is the first thing to settle when buying property as a temporary resident. Getting it wrong is expensive: the penalties include forced sale. This page covers who needs approval, what they can buy, and how to sequence it with your contract and your finance.
What the law says
The Foreign Acquisitions and Takeovers Act 1975 (Cth) and its regulations require a foreign person to notify the Treasurer and receive a no-objection notification before acquiring an interest in Australian residential land. The Foreign Investment Review Board (FIRB) advises the Treasurer, and residential real estate applications are processed by the Australian Taxation Office (ato.gov.au) on the Treasurer's behalf.
A foreign person includes:
- an individual who is not ordinarily resident in Australia, which includes most temporary visa holders;
- a foreign government or its entities;
- a corporation or trust in which a foreign person holds a substantial interest.
Australian citizens (wherever they live) and permanent residents are not foreign persons. New Zealand citizens are treated in the same way as permanent residents for residential property. A foreign person buying jointly with an Australian citizen spouse as joint tenants is generally exempt.
What can be approved
| Property type | Foreign person (non-resident) | Temporary resident |
|---|---|---|
| New dwelling (never occupied or sold as a dwelling) | Normally approved | Normally approved |
| Vacant residential land | Approved on condition a dwelling is completed within 4 years | Same |
| Off-the-plan apartment | Normally approved (developer may hold an exemption certificate) | Same |
| Established dwelling | Not permitted, and subject to the temporary ban | Historically one to live in, but currently subject to the ban with limited exceptions |
| Established dwelling to redevelop | Case by case, must genuinely increase housing stock | Same |
At the time of writing, the federal government has a ban on foreign persons buying established dwellings that applies from 1 April 2025 until 30 June 2029 — the 2026–27 Budget extended the original 31 March 2027 end date — with limited exceptions such as certain redevelopments and some Pacific and labour-mobility scheme participants. Temporary residents who previously relied on the "one established home to live in" pathway should check the current position on the ATO's foreign investment pages before signing anything.
Fees, conditions and penalties
- Application fees are payable up front and scale with the purchase price, and they are larger than most buyers expect. Under the 2026–27 schedule, residential land other than an established dwelling — a new dwelling, an off-the-plan apartment or vacant land — costs $15,600 where the consideration is $1 million or less, $31,300 to $2 million and $62,600 to $3 million. Established dwelling fees are triple the equivalent tier ($46,800 at $1 million or less). Fees are indexed on 1 July each year and are not refunded if the application is refused or the purchase falls through. (Source: Treasury, Schedule of Fees version 8, 1 July 2026, foreigninvestment.gov.au — checked 2 September 2026.)
- Conditions typically require completion of construction within 4 years for vacant land, and for temporary residents historically required sale of an established dwelling within a set period after leaving Australia.
- Annual vacancy fee. A foreign owner of a residential dwelling must lodge an annual vacancy fee return, and pays a fee if the dwelling is not occupied or genuinely available for rent for at least 183 days in the year.
- Penalties for buying without approval or breaching conditions include civil penalties, criminal penalties for serious breaches, and orders requiring the property to be sold.
How the FIRB process works, step by step
- Confirm whether you are a foreign person. Your visa type at the contract date decides it. If you are a permanent resident or citizen, stop here: you don't need approval.
- Choose an eligible property. Given the current ban, that means a new dwelling, an off-the-plan purchase, or vacant land in a house-and-land package for most temporary residents.
- Apply through the ATO's online portal before signing, or sign a contract that is expressly conditional on FIRB approval. Pay the fee.
- Wait for the no-objection notification. The statutory timeframe is 30 days, extendable, and it can be faster or slower in practice. Build this into your finance and contract dates.
- Comply with conditions after settlement: build within the deadline, lodge vacancy fee returns, and notify the ATO when you settle and when you sell.
- Reassess on visa change. Once you become a permanent resident, most conditions cease to apply, and you become eligible to buy established homes without approval. Our guide to home loans for new migrants covers the next stage.
Worked example
Priya is on a temporary skilled visa and wants to buy in Melbourne's north. An established $650,000 house in Craigieburn is, at the time of writing, off the table under the federal ban. She instead signs a house-and-land package in Donnybrook: $320,000 for the land and a $330,000 build contract, total $650,000.
Her conveyancer makes the land contract conditional on FIRB approval. She applies to the ATO, pays the $15,600 application fee that applies to consideration of $1 million or less, and receives a no-objection notification within a few weeks with a condition to complete construction within 4 years. Her lender issues formal approval once the FIRB letter is on file.
At the Victorian level, she pays general duty on the $320,000 land value (not the build), plus foreign purchaser additional duty of 8% on the land. Her partner, a permanent resident, later joins the title; had he been on the contract from the start as her domestic partner buying their home, her share would have been exempt from the additional duty.
What it means for your home loan
- Lenders require the FIRB letter before unconditional approval, and some require it before pre-approval for a specific property.
- Fewer lenders, tighter terms. Lenders that accept temporary residents often limit the LVR, require a longer visa remaining, and want foreign income verified. Our visa holder home loan page sets out the typical rules.
- Construction loans for house-and-land purchases have their own approval steps and progress payments; see construction loan progress payments.
- Higher deposit needed. A $15,600 FIRB fee, the 8% Victorian surcharge and lower LVRs stack up. Plan the cash position before you fall in love with a floor plan.
- Off-the-plan timing. A pre-approval expires long before an apartment completes, so plan to reapply and confirm your visa status at that time.
Gorakh Timilsina's years assessing visa-holder applications as a senior credit officer mean GNT Finance can quickly identify which lenders will work for your visa and property type. Our home-loan service is at no cost to you in most cases.
Common mistakes
- Signing an unconditional contract before approval. If FIRB refuses, you are still bound and can lose your deposit.
- Assuming a partner's PR covers you. The joint-purchase exemption applies to spouses and domestic partners buying together, not to a purchase in the visa holder's sole name.
- Buying an established home through a relative to get around the rules. The ATO treats this as an avoidance scheme.
- Forgetting the vacancy fee return after settlement.
- Not updating the ATO when you become a permanent resident or sell.
Frequently asked questions
Do I need FIRB approval to buy a house on a temporary visa?
Yes. Temporary residents are foreign persons under the Foreign Acquisitions and Takeovers Act 1975 (Cth) and must apply before buying residential property, or sign a contract conditional on approval. New dwellings and vacant land are normally approved. Established homes are currently subject to a federal ban running to 30 June 2029 with limited exceptions, so check the ATO's current guidance.
How long does FIRB approval take?
The statutory period is 30 days from payment of the fee, which the Treasurer can extend. Straightforward applications for new dwellings from temporary residents are often decided faster, but you should not rely on it. Make your contract conditional on approval, or apply before you start making offers, and tell your broker so the finance timetable matches.
Can a temporary resident buy an established house in Australia?
At the time of writing, generally no. A ban on foreign persons, including temporary residents, buying established dwellings runs from 1 April 2025 to 30 June 2029, with limited exceptions. Before the ban, temporary residents could buy one established home to live in and had to sell it on leaving. Once you become a permanent resident, you can buy established homes without approval.
What happens if I buy property without FIRB approval?
Buying without approval is a breach of the Act. Consequences range from civil penalties and retrospective application fees to criminal penalties and orders forcing you to sell the property. Lenders will also refuse to fund a purchase without evidence of approval or exemption, so the transaction may fail at settlement regardless.
Do I need FIRB approval to buy with my Australian citizen spouse?
Generally no, if you buy together as joint tenants and your spouse is an Australian citizen. The exemption applies to spouses and domestic partners, not other relatives or friends. You may still be a foreign purchaser for Victorian additional duty purposes unless the home will be your principal place of residence, so check both the federal and state rules together.
Talk to GNT Finance
If you are buying on a visa, GNT Finance will confirm which lenders accept your visa and property type, line up the FIRB step with your contract dates, and structure the purchase to keep duty as low as the law allows. Book a free consultation or call 0426 403 703.
This page is general information only and not legal, tax or financial advice. Laws change — confirm current rules with the State Revenue Office, the ATO or a licensed professional.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.