Foreign Investment Rule Changes in Australia: What Property Buyers Need to Know
Yes, foreign buyers can still purchase property in Australia, but the established home market is closed to them until at least mid-2029, and getting that detail wrong is an expensive mistake. The temporary ban on foreign purchases of established dwellings, first introduced from 1 April 2025, was extended by two years and three months in the 2026-27 Federal Budget, pushing the end date out to 30 June 2029.
A lot of material still in circulation quotes the original 31 March 2027 end date, which is no longer correct. New and near-new dwellings and vacant residential land remain generally open to foreign investors, subject to approval and fees that have grown substantially in recent years.
This article works through who the rules apply to, what you can and cannot buy, how approval works, what it costs, and what to check before you sign anything. Last reviewed August 2026 against current government guidance.
What Changed: Foreign Investment Rules in Australia
The established dwelling ban began on 1 April 2025 and was originally set for a two-year term, ending 31 March 2027. In the 2026-27 Federal Budget, the government extended that ban by two years and three months, taking the new end date to 30 June 2029.
If you are reading a source that quotes 31 March 2027, it predates the extension. During the ban, foreign persons, including temporary residents and foreign owned companies, generally cannot purchase an established dwelling in Australia unless a limited exception applies.
Source: Australian Taxation Office and Foreign Investment in Australia guidance, current to August 2026 | FPW Group 2026
Separately, the Treasurer announced a broader package of reforms to the wider foreign investment framework in May 2026, aimed at speeding up approvals for low-risk investments while strengthening scrutiny of higher risk transactions. Those reforms are still working through legislation and mainly affect commercial and business investment, not the residential rules covered here.
Who Counts as a Foreign Investor
The term foreign person is broader than most buyers expect. It covers individuals who are not ordinarily resident in Australia, foreign companies, and trusts or other entities where foreign interests hold a substantial ownership or controlling stake, not just buyers holding an overseas passport.
Temporary residents: Generally treated as foreign persons. During the current ban, temporary residents can no longer buy an established dwelling as their principal place of residence, which was previously allowed under earlier rules.
Permanent residents and citizens: Australian citizens and permanent residents are not subject to these restrictions when buying in their own capacity.
New Zealand citizens: Eligible New Zealand citizens are generally treated outside the foreign person rules and are not affected by the established dwelling ban.
Foreign companies and trusts: Entities with substantial foreign ownership or control are treated as foreign persons regardless of where the entity is registered.
What Property Can Foreign Buyers Purchase
New and near-new dwellings remain the clearest path for foreign buyers, generally requiring approval before purchase unless the developer has already pre-notified the ATO on the buyer's behalf. Vacant residential land for development is also generally available, though it typically carries development conditions tied to genuinely increasing housing stock within a set timeframe. Choosing the right new-build location still comes down to the same fundamentals covered in our guide to identifying an investment grade suburb.
Established dwellings are the exception, not the rule, while the ban is in place. The limited exceptions currently recognised include redevelopment projects that meaningfully increase housing stock, certain commercial scale housing arrangements, and specific circumstances such as a foreign spouse purchasing jointly with an Australian citizen, permanent resident or eligible New Zealand citizen.
Do You Need FIRB Approval, and How Do You Apply
Almost every foreign person buying residential land in Australia needs approval before they buy, regardless of the property's value. Unlike other foreign investment categories, residential applications are not lodged through the general Foreign Investment Portal. They go through the Australian Taxation Office's online services for foreign investors, and the application fee must be paid before the statutory decision timeframe even begins.
Property developers can also apply for their own exemption certificates covering new or near-new dwellings, which then removes the need for each individual foreign buyer to apply separately. It is always worth asking a developer directly whether that exemption is already in place before starting your own application.
Fees, the Vacancy Fee and Ongoing Obligations
Application fees are indexed and scale with the property's value, and they have increased substantially in recent years as part of the government's push to direct foreign investment toward new housing supply. On top of the upfront fee, an annual vacancy fee applies if the property is not occupied, or genuinely available for rent, for at least 183 days in a 12 month period. That fee decision sits alongside the broader financing picture for any purchase, including how interest rates shape borrowing decisions for the purchase itself.
Source: Australian Taxation Office, Fees for foreign residential investors, current to July 2026 | FPW Group 2026
Buyers and sellers of residential land also need to notify the Register of Foreign Ownership of Australian Assets, separately from the approval process itself. That obligation continues after settlement, including reporting occupancy status each year for as long as the vacancy fee rules apply.
What Happens If You Buy Without Approval
The Australian Taxation Office uses data matching against land title records, visa data and other government systems to identify purchases that have not been properly notified or approved. Buyers who proceed without approval, or who acquire a property after notifying but before receiving approval, risk significant penalties and, in some cases, a forced disposal order requiring the property to be sold. This sits alongside the broader list of costly mistakes first time property investors make, but the consequences here are considerably more serious than a simple financial misstep.
Retrospective approval is sometimes possible where a breach was unintentional, but it is never guaranteed and typically requires voluntary disclosure and independent legal advice. Waiting until after settlement to find out whether a purchase was even permitted is not a position any buyer should put themselves in.
Before You Buy: A Practical Checklist
The official guidance is comprehensive but spread across several separate pages covering residential land, applications, compliance and fees. Before signing anything, it is worth working through the same questions in one place.
Confirm your status: Work out whether you are considered a foreign person under the current definition, including any entity or trust structure involved in the purchase.
Identify the property type: Check whether the property is new, near-new, established or vacant land, since each category is treated differently.
Check whether approval is required: Assume approval is required unless a developer exemption or a specific carve out clearly applies.
Confirm any exceptions: If buying an established dwelling, check whether a redevelopment or commercial scale housing exception genuinely applies before relying on it.
Budget for fees: Factor in the application fee, potential vacancy fee exposure, and separate state based foreign buyer duty or land tax surcharges.
Get independent advice: Have a property lawyer or migration adviser review your circumstances before you sign a contract, particularly if your situation does not fit neatly into one category.
Once approval and property type are confirmed, the purchase process itself follows the same fundamentals covered in our guide to how to buy an investment property, and our Property Investment Australia hub covers the broader strategy questions that apply regardless of a buyer's residency status.
Final Thoughts
Foreign buyers can still invest in Australian property, but the rules now draw a hard line around established dwellings that will not move again before 30 June 2029. New and near-new dwellings and vacant residential land remain the practical path for most foreign investors, provided approval is sought before signing rather than after.
The fees involved are substantial and the compliance obligations continue well past settlement, through vacancy fee reporting and the Register of Foreign Ownership. Working through the property type, approval requirement and exceptions before committing to a contract is what separates a straightforward purchase from an expensive and stressful correction later.
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