FREQUENTLY ASKED QUESTIONS (FAQ)

The questions and answers below provide a brief response to the most commonly asked questions. For more information, refer to the relevant sections of the website or Contact Us.

• General
• Real Estate
  • Developer pre-approval for new dwellings
  • Foreign non-residents
  • Temporary residents
  • Contracts
  • Auctions
  • Application forms
  • Retrospective applications
  • Compliance and monitoring
• Australia-United States Free Trade Agreement (AUSFTA)

General

Q1. I am a foreign person. Can I invest in Australia?

Yes, depending on what you wish to invest in.

Acquisitions of residential real estate require prior foreign investment approval before the purchase can proceed (with certain exemptions).

Certain acquisitions of commercial real estate also require prior foreign investment approval (with certain exemptions).

Acquisitions of shares or other assets of businesses also require prior foreign investment approval in certain instances based on the size and type of investment.

For further information, please refer to the Foreign Investment Policy and the Monetary Thresholds .

Q2. Do I need to apply for foreign investment approval?

The following acquisitions require approval, irrespective of the value or the nationality of the investor (unless you are exempt):

• vacant non-residential land;
• residential real estate;
• shares or units in Australian urban land corporations or trust estates; and
• direct investments by foreign governments or their agencies.

Q3. Are there any exemptions?

Yes. Refer to the exemptions page.

Q4. What does it mean if the acquisition is exempt?

If the acquisition is listed on the exemptions page, it means you do not need to notify us or seek our approval for the acquisition. Please note that we do not issue exemption letters.

Q5. Are there any limits or monetary thresholds for foreign investment approvals?

Yes. Refer to the relevant monetary thresholds page – for US investors and other investors.

Q6. What forms do I have to fill out to apply?

It depends on the nature of the proposal. Refer to the relevant page under How to apply.

Q7. Do I have to post the originals or hard copies of the signed form(s) and other documents to you?

No, just email or fax us your application.

Q8. How long does it normally take to get a decision?

Residential real estate applications which meet the eligibility criteria will generally be finalised within a short period of time after we receive the completed application (that is, the relevant statutory notice or retrospective form as well as the relevant Declaration of eligibility), depending on current workloads. However, all other applications are more complex in nature and may take up to 30 days to examine and up to a further 10 days to advise the parties of the decision. In rare cases, that time period may be extended by a further 90 days if necessary.

If you wish to seek urgent consideration of your application, valid supporting reasons must be provided (for example, if the property is scheduled for auction or if you have an urgent commercial deadline).

Q9. How do we contact you?

Our contact details are listed in the Contact Us section.

Q10. According to the list of exemptions, I don’t need approval – should I contact you to confirm that the exemption applies to my particular circumstances?

No, you should determine whether your proposed acquisition is exempt and if in doubt, seek legal advice.

Real Estate

Q11. According to the list of exemptions, I don’t need approval – can you provide written confirmation of this for my bank/mortgage provider?

No, we do not issue individual exemption letters.

Q12. Can I apply before finding a property?

No, foreign investment approval is required for a specific property you wish to acquire. You cannot apply for a general or ‘in principle’ pre‑approval.

Q13. Can I apply for several properties at once?

Yes, but you must submit a separate application for each property you wish to purchase.

Q14. How many properties can I purchase?

There are no restrictions on the number of properties you are permitted to purchase, but you must obtain approval and meet the eligibility criteria for each property.

Q15. Can I rent out the property?

If you purchase a new dwelling – yes.

If you purchase vacant land – you can rent out the dwelling(s) that you construct on the land.

If you purchase an established dwelling for redevelopment purposes – you cannot rent out the existing dwelling, but you can rent out the new dwellings that you construct after demolishing the existing dwelling.

If a company purchases an established dwelling for their Australian-based staff – you may rent out the dwelling if it is expected to remain vacant for more than 6 months and you are unable to sell it.

Q16. Do I need approval to sell the property?

No, but you should be aware that the foreign investment policy may apply if foreign person(s) want to purchase it from you (that is, you should ensure that the contract of sale is conditional upon the foreign purchaser(s) receiving foreign investment approval).

However, you will need approval if you intend to sell the property without complying with the conditions specified in your approval – for example, if you purchased vacant land and you wish to sell the land without constructing any dwelling(s); or if you purchased property for redevelopment and you wish to sell it without demolishing the existing dwelling and building new dwellings.

Q17. Will you contact me about my application?

We will contact you or the nominated contact person (preferably by email) if we require more information.

The decision advice will normally be sent to the nominated contact person via email.

Q18. I have received an ‘approval’ email – will you also send me an ‘approval’ letter in the post?

No, the email represents official ‘approval’ under the FATA.

Q19. What if I change my mind about purchasing the property?

If you no longer intend to purchase the property and wish to withdraw your application before receiving approval, please notify us in writing (preferably by email or fax).

Q20. What if I want to change or add purchaser(s)?

Approval is granted for specific person(s) – the approval will not apply to any other person(s). If you wish to change the person(s) who will be acquiring the property, you must submit separate application(s).

Q21. What if I want to change the property?

Approval is granted for a specific property – the approval will not apply to any other property. If you wish to purchase a different property (or additional properties), you must submit separate application(s).

Q22. What if I become a permanent resident?

You are not required to inform us if you become a permanent resident (unless this is specifically listed as a condition of your approval). You are still required to comply with any development conditions (for example, if you purchase vacant land or property for redevelopment).

Q23. Do I need approval to inherit property which someone left me in their will?

No, you are not required to apply for foreign investment approval. Any acquisition of residential property by way of an inheritance (settlement of a legal will) or by a court ruling is exempt from the requirement to seek foreign investment approval.

Q24. I am in a same-sex relationship with an Australian citizen. Am I exempt if we purchase residential property together as joint tenants?

Yes, the spouse exemption applies to you if you 'have a relationship as a couple living together on a genuine domestic basis' (as defined in the Acts Interpretation Act 1901).

Q25. I bought a property as joint tenants with my Australian citizen spouse (I didn’t need approval at that time). Our relationship has ended, but we wish to retain the house in joint names. Do I need approval now?

No, the FATA only applies at the time of acquisition – if you were exempt at that time and you are not going to acquire any additional interest in the property, you do not need to seek approval.

Q26. I bought a property as joint tenants with my Australian citizen spouse (I didn’t need approval at that time). Our relationship has ended and I wish to transfer the house solely into my name as part of the property settlement. Do I need approval?

You are acquiring an additional interest in the property, therefore the FATA applies. However, whether approval is required or not depends on the nature of the property settlement:

• If you acquire the property by way of a court order, approval is not required.
• If the parties agree to the property settlement without court intervention, approval is required (unless you qualify for a separate exemption under the FATA – for example, if you qualify for the temporary resident exemption).

Q27. I am a temporary resident and I wish to purchase a property to live in while I am in Australia, but I cannot afford to buy a property by myself.  Can my parents (who live overseas) purchase a property with me?

Yes. As foreign non-residents, they will need approval if they wish to purchase any property (even if they are purchasing it together with other person(s) who are exempt). Approval will be granted according to the eligibility criteria – that is, they can purchase vacant land (subject to the relevant development conditions) or new dwellings, but they will not be permitted to purchase established property.

Developer pre-approval for new dwellings

Q28. The developer has given me a copy of a pre‑approval letter dated several years ago, and told me I don’t need to submit an application for approval. Is this correct?

If the developer has been granted pre‑approval to sell new dwellings to foreign persons, this means that the individual foreign purchaser doesn’t need to submit an application for approval. The pre-approval does not expire – it remains valid as long as you are buying a new dwelling in the development identified in the pre‑approval letter from the developer named in the pre‑approval letter.

Q29. I have been told that the developer has pre‑approval. Can I still submit an application for individual approval?

No. We do not issue individual exemption or approval letters if approval is not required. The developer must provide you with a copy of the pre‑approval letter, which you should keep with your records. You should only apply for individual approval if the developer’s pre‑approval is not valid – for example, if the dwelling is no longer new, or if you are not purchasing it from the developer named in the pre‑approval letter.

Q30. I am a developer. If I don’t have pre-approval for a residential development, can I still sell the dwellings to foreign persons?

Yes, but you should ensure that the contracts are conditional (unless the purchaser is exempt), and that they remain conditional until approval is granted to the purchasers.

Q31. I am a developer. If I don’t have pre-approval for a residential development, can I submit the applications on behalf of the individual foreign purchasers?

Yes. You can email or fax us the completed forms (including the new dwelling Declaration signed by the purchasers). Under the new streamlined arrangements, we expect such applications to be routinely approved in a short period of time.

Foreign non-residents

Q32. I do not hold a temporary residency visa but I wish to purchase residential property, do I need to seek approval?

Yes. Applications by foreign persons to acquire residential real estate will be approved if they meet the eligibility criteria. If you are not eligible for approval under the policy, then the acquisition is generally considered to be contrary to the national interest and will not normally be approved.

Q33. I am a permanent resident and my mother is a retired foreign person who wishes to come to Australia to be near her family. Does she require foreign investment approval to purchase a property?

Yes. As a foreign non-resident, your mother is required to apply for foreign investment approval to purchase any real estate. Approval will be granted according to the relevant eligibility criteria.

Q34. I am a foreign non-resident – do I need approval if I buy property through an Australian company or trust arrangement?

Yes. If you are a foreign non-resident you require approval regardless of the way you buy the property.

Q35. I am a foreign national and was recently told that I would not need approval if I bought real estate through an Australian incorporated company or unit trust which has at least one Australian director or shareholder/unitholder. Is this true?

No, and moreover, we would like to know the source of such advice so that we can advise them accordingly. Australian incorporated companies or trusts where 15 per cent or more of the shares or units are beneficially held by foreign persons are themselves considered to be "foreign" under the Act and policy. It is wise to talk to us about particular structures before making any offers on property.

Q36. I am a foreign person who regularly visits family in Australia. Can I buy a second-hand property with a family member who is an Australian citizen/permanent resident?

No. As a foreign non-resident, you are not permitted to acquire any interest in second-hand residential property, irrespective of whether you purchase it solely in your name or jointly with eligible persons (Australian citizens, permanent or temporary residents).

Q37. I am a foreign person and I want to buy a transportable home in a caravan park. Even though I won’t be acquiring any land with this proposal, do I need approval?

You will need approval if you enter a lease for the site in the caravan park for a period in excess of five years.

Q38. I'm a foreign non-resident and my spouse is an Australian permanent resident. If we're buying a house together, do I require approval?

Yes. Even though your spouse doesn't require approval, you are still required to seek foreign investment approval and submit an application. Approval will be granted according to the relevant eligibility criteria.

Q39. I'm a foreign non-resident and my spouse is a New Zealand citizen. If we're buying a house together, do I require approval?

Yes. Even though your spouse doesn't require approval, you are still required to seek foreign investment approval and submit an application. Approval will be granted according to the relevant eligibility criteria.

Q40. We are British citizens and we often visit family here. We want to retire next year and live in Australia. Do we need to get FIRB approval to buy a house now? What if we buy jointly with our son and daughter-in-law who are Australians?

Yes, you will need to seek approval to purchase property before you move to Australia. Approval will be granted depending on whether you meet the eligibility criteria for the type of property you wish to buy. The fact that you may buy jointly with family members does not affect how your proposal will be viewed under policy.

Q41. I am a temporary resident, but my parents are not. Can they buy a property for me to live in while I am in Australia?

Yes. As foreign non-residents, they will need approval if they wish to purchase any property, and approval will be granted according to the eligibility criteria (that is, they will not be permitted to acquire established property).

Q42. My foreign citizen parents want to move into a unit in a retirement village here in Australia to be near our family. They won’t actually own the unit – they will have a ‘lifetime’ lease permitting them to live in the unit. Will they need approval?

They will need approval if they wish to acquire the property (that is, enter the lease) before they qualify for the temporary resident exemption. However, if they wait until after they become temporary residents, then they will no longer require approval.

Temporary residents

Q43. I was told that, as a temporary resident, I no longer needed approval to purchase property. I signed an unconditional contract before 31 March 2009. Should I apply for approval?

No, even though the Regulations did not commence until 31 March, the temporary resident exemption applies to any contract that was entered into on or after 18 December 2008 (the date that the Assistant Treasurer announced the policy changes). As long as you qualify for the exemption, you don't need to notify us (irrespective of whether your contract is conditional or unconditional).

Q44. I have submitted an application for a temporary resident visa. In the meantime, I have been granted a bridging visa. Do I qualify for the temporary resident exemption?

No, not until you receive your temporary resident visa (the temporary resident exemption applies to bridging visa holders only if they are awaiting the outcome of an application for permanent residency).

Q45. I have just been granted a temporary resident visa and intend to move to Australia within a few months. Do I qualify for the temporary resident exemption?

No. You are not a temporary resident if you are not living in Australia.

Q46. I have a tourist visa valid for 12 months. Do I qualify for the temporary resident exemption?

No. You must be living in Australia (not just visiting or holidaying for an extended period of time), and your temporary visa must allow you to stay in Australia for a continuous period of more than 12 months.

Q47. I have a business visa valid for 3 years, but it only allows me to stay for periods up to 3 months at a time. Do I qualify for the temporary resident exemption?

No. You must be living in Australia (not just visiting or staying for short periods of time), and your temporary visa must allow you to stay in Australia for a continuous period of more than 12 months.

Q48. I have been living in Australia on a temporary resident visa for several years, but my current visa expires in less than 12 months. Do I qualify for the temporary resident exemption?

Yes, it does not matter how much time is remaining on your current visa, as long as it was valid for more than 12 months when it was issued.

Q49. My spouse and I are temporary residents and already own a home purchased with Government approval. Can we buy another property for investment purposes?

Yes, provided it is not a second-hand residential property. You do not need approval to purchase new dwellings or single blocks of vacant land (that is, a block of land suitable for building one residential dwelling). Approval is required if you wish to purchase other vacant land for development or property for redevelopment.

Q50. I am a temporary resident. A few years ago, I received approval to buy a second-hand dwelling to live in while in Australia. When I go back overseas, can I keep it and rent it out?

No. Approval would have been granted on condition that it was your principal place of residence, and that you would be required to sell it when it was no longer used for this purpose.

Q51. I wish to rent a property to live in while I am working/studying in Australia. Do I need foreign investment approval to enter a lease?

Only if the lease (and any options) is for a period longer than five years (this is uncommon for residential real estate).

Contracts

Q52. Can I sign (or exchange) a contract before receiving approval?

Yes, but you should ensure that the contract remains conditional until after you receive foreign investment approval – if it becomes unconditional before you receive approval, you will be in breach of the FATA.

Q53. Can you give me an example of a ‘condition’ to include in the contract?

‘This contract is subject to foreign investment approval. If such approval is not obtained within 40 days, this contract is terminated and all monies deposited will be refunded.’

Auctions

Q54. Can I purchase a property at auction?

Yes, but you should obtain foreign investment approval before the auction (auctions generally require bids and contracts to be unconditional).

Q55. I want to purchase a house at auction, but I can't make the contract conditional, what should I do?

If you submit your application before the auction and give us reasonable time (approximately 5 working days before the auction), we try to ensure that you have the decision before the auction.

Q56. I received foreign investment approval to purchase a property at auction but my final bid was unsuccessful. Do I have to seek another approval to attend an alternative auction?

Yes. The approval only applies to the property identified in the approval advice – you must seek further approval if you wish to purchase a different property (unless you are exempt).

Application forms

Q57. What forms do I have to fill out to apply for approval to buy residential real estate?

It depends on:

• the type of property you are purchasing;
• whether you are purchasing in your own name(s) or in the name of a company or trust; and
• whether you have already acquired the property (including if you have already entered an unconditional contract) in breach of the FATA.

On the How to apply: Residential real estate page, click on the relevant link to download the appropriate forms.

Q58.  I have already submitted an application (via email/fax/post) using the old forms. Do I need to re-submit the application on the new forms?

Yes, all applications must now be submitted on the new forms (applications submitted on the old forms are no longer valid).

Q59.  I started an online application in FIOLA, but I cannot access FIOLA to finish the application. What should I do?

The Foreign Investment Online Application System (FIOLA) is no longer available, so you will not be able to complete your application online. You must download and print the new application forms, then email or fax the completed and signed forms to FIRB - please note that applications submitted on the old forms from 31 March 2009 will not be valid.

Q60.  I submitted an online application in FIOLA, but I have not yet uploaded the signed forms. What should I do?

The Foreign Investment Online Application System (FIOLA) is no longer available, so you will not be able to upload the signed forms. Even if you 'submitted' the application in FIOLA, it is not considered a valid application until we receive the signed forms. You must download and print the new application forms, then email or fax the completed and signed forms to FIRB - please note that applications submitted on the old forms from 31 March 2009 will not be valid.

Q61. Do I have to attach any other documents to my application?

If you meet the eligibility criteria – no, just the relevant form and Declaration (see How to apply: Residential real estate).

If you do not meet the eligibility criteria – yes, additional information will be required (see How to apply: Residential real estate).

Q62. What if I don’t have a passport?

Alternative information is required for identification purposes (such as a Driver’s Licence or identity card).

Q63. Why do I have to provide details of other properties and FIRB applications?

This will help us locate your details in our database and may be used for compliance purposes.

Q64. What does ‘land title details’ mean?

The official land title details can be found on the contract. The type of details shown on your contract will depend on the State or Territory in which the property is located. You do not need to fill in all the boxes – just those with the relevant details from your contract. If you can’t find the ‘lot and plan’ or the ‘volume and folio’ numbers, please provide alternative details under ‘other’ (for example, ‘folio identifier’).

Q65. What if we haven’t agreed on the purchase price yet?

Please provide an approximation of the expected purchase price.

Q66. Do I have to provide details of an agent on the application form?

No, do not complete that Part if you would like us to deal with you directly, rather than through a third party. However, if you are overseas, please provide details of a contact person in Australia.

Q67. Should I tick ‘yes’ or ‘no’ in the Declaration?

Tick ‘yes’ if the statement is correct (for example, New Dwelling Declaration: tick ‘yes’ to confirm that the dwelling has been occupied for less than 12 months (including if it has never been occupied)). 

If you tick ‘no’ to any statements, it means you are not eligible under the policy and you cannot submit a Declaration with your application.

Q68. Does it matter if I leave some of the boxes empty on the form or Declaration?

Yes, your application is not valid and will not be processed until we receive the fully completed forms (for example, you must print the address of the property being acquired on the Declaration as well as on the statutory notice/retrospective form).

Q69. Can I sign the Declaration on behalf of the applicant(s) as their agent?

No, the Declaration is not valid unless it is signed by the applicant(s).

Retrospective applications

Q70. I did not know I needed approval and have already entered an unconditional contract to purchase property – does that mean my contract is invalid?

No, the contract remains valid, but by entering an unconditional contract you have breached the FATA. You should submit a retrospective application. If you meet the eligibility criteria, retrospective approval is generally granted (that is, no action will be taken with respect to the breach as long as you comply with the standard conditions).

Q71. I did not know I needed approval and have already purchased property – what should I do?

You should submit a retrospective application. If you meet the eligibility criteria, retrospective approval is generally granted (that is, no action will be taken with respect to the breach as long as you comply with the standard conditions).

Q72. I was unaware of the requirement for foreign investment approval when I bought some land about 6 months ago to build a house and recently a friend told me that I may have breached the FATA because I should have obtained approval prior to purchasing the property. What action will the Government take against me now?

Action will depend on whether your acquisition would have been approvable under the current guidelines. Worst case scenario - where it is considered inconsistent with policy you may be ordered to sell the land within a certain time. Provided you sell within the required time, prosecution is unlikely though details of the breach will be sent to the immigration authorities for any action they deem necessary.

Compliance and Monitoring

Q73. I bought vacant land with FIRB approval but am unable to start construction on my property by the required commencement date – who should I contact?

You or your representative should contact us as soon as possible with an explanation of your circumstances and request a formal extension of time before the original timeframe expires. The matter will be looked at on a case-by-case basis. Extensions may be given where good cause is shown.

Q74. Due to unforeseen circumstances, we are unable to build the house on the land we bought. How will the Government view us selling without undertaking development?

The Government is most concerned about foreign interests acquiring residential real estate in Australia without complying with the development conditions. You must contact us to explain your circumstances. Your claims will be considered and a decision given to you on what action you should take.

Q75. Can a breach of the Foreign Acquisitions and Takeovers Act 1975 (FATA) get me into trouble with any other Government agency?

Yes. Breaches of the FATA are treated seriously and other Government Agencies may be advised of such breaches (including the Department of Immigration and Citizenship, the Australian Federal Police and the Australian Taxation Office). This may result in delays in visas being issued, further character assessment and an assessment of any tax payable.

Q76. Our company purchased a house with your approval which we intend to demolish and build three units on the land. However, we have experienced a delay in the planning process and wondered whether the property can be occupied before demolition begins?

No. The conditions of your approval state clearly that the property must remain vacant until demolition begins.

Q77. I think a non-resident person may have purchased a particular property without getting approval from the Government - Who should I inform?

You should contact us providing all details known to you. We will look into the matter thoroughly and treat in confidence your identity and all information given. Quite often though, such reports do not require further action as the purchase meets the policy requirements, or foreign investment approval was not required.

Q78. Do I still have to build on vacant land I acquired with foreign investment approval now that my visa status has changed and I have become an Australian permanent resident?

Yes, you are still required to comply with the condition(s) specified in your approval advice. If you are having problems meeting the requirement(s) you should contact us.

Australia-United States Free Trade Agreement (AUSFTA)

Q79. I am a US Citizen. Do I require foreign investment approval to buy residential real estate in Australia?

Yes. While the AUSFTA liberalises United States sourced investment, the Government’s foreign investment policy in relation to the acquisition of residential property remains unchanged. Foreign persons, including Unites States citizens, require foreign investment approval to acquire residential real estate in Australia unless they are exempt.

Q80. I am a US Citizen, can I buy commercial property?

Yes. You do not require approval to purchase developed commercial property if it is valued below the current monetary threshold, but approval is required if you wish to purchase any vacant land.

Q81. Where can I find copy of the new regulations and an updated version of the Foreign Acquisitions and Takeovers Act 1975 which includes amendments made under the AUSFTA?

Australian legislation is available from the Attorney General’s Department’s ComLaw website at www.comlaw.gov.au — click on the links to go to the Foreign Acquisitions and Takeovers Act 1975 and the Foreign Acquisitions and Takeovers Regulations 1989. The changes relating to the AUSFTA came into effect from 1 January 2005.

Q82. Under the AUSFTA, what is a “US investor”?

Refer to Definitions for details about who is a US investor.

Q83. Can US investors acquire a substantial interest in an Australian business?

Yes. Acquisitions of interests in Australian businesses valued below the relevant monetary thresholds are exempt from the need to obtain approval.

Q84. What are the prescribed sensitive sectors that apply to US investors?

Refer to Definitions for the list of prescribed sensitive sectors under the AUSFTA.