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• Foreign Investment
• Who Is Required
• Which Investments Require Approval
• Commercial Real Estate
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• Other Acquisitions
• Breaches Of The Act
• Making An Application To FIRB
• Residential Real Estate

Residential Real Estate

Entering into a Contract

All contracts by foreign persons to acquire interests in Australian real estate (including temporary residents) must be made conditional upon FIRB approval.  For properties to be purchased at auction prior FIRB approval must still be obtained.

Temporary Resident

The definition of a temporary resident was expanded in December 2008 to include all foreign persons who are living in Australia with a visa of at least 12 months duration and those on long-term bridging visas.  Those with tourist visas or short term business visas will continue to not be considered as temporary residents.

In April 2010 the Government changed the Foreign Investment Policy to state that temporary residents may apply to buy vacant land on which to build (subject to development conditions), new dwellings and/or an established (second hand) dwellings to be used as their principal place of residence.  Where the Government provides approval to buy an established dwelling, it will be subject to a condition that the temporary resident sells the property when it ceases to be their principal place of residence.

Applications by temporary residents to buy established dwellings for investment purposes will not be approved. 

Vacant Residential Land

Acquisitions of vacant land for development (including house and land packages where construction has not commenced) by foreign interests are normally approved subject to the land being developed within 24 months.  Prior to the December 2008, the Government imposed conditions for continuous substantial construction to commence within 12 months and a minimum amount equivalent to 50% of the acquisition cost be spent on the development.  These conditions no longer apply.

New Dwellings

A new dwelling is now defined as having been resided in less than 12 months, in place of the prior requirement that the dwelling had to be uninhabited.  This allows developers to temporarily rent out premises until a buyer is found.  There are now no restrictions on the number of dwellings/units that may be sold to a foreign entity in a new development.  However, a separate FIRB approval must be obtained for each sale to a non-resident.

Foreign Students

As outlined above, foreign students, as temporary residents, must apply for approval.

Acquisitions of Residential Real Estate Not Requiring Notification to FIRB

The following acquisitions of residential real estate do not require notification to the Foreign Investment Review Board:

• Australian citizens living abroad purchasing either in their own name or through an Australian corporation or trust;
• Foreign nationals who are the holders of a permanent visa;
• New Zealand citizens;
• Foreign nationals purchasing as joint tenants with their Australian citizen spouse;
• Acquisitions from a developer where the developer has pre-approval to sell those new dwellings to foreign persons;
• An interest in a time share scheme which does not permit more than 4 weeks entitlement per year;
• Certain residential real estate in Integrated Tourism Resorts;
• An interest acquired by Will or devolution by operation of law;
• An interest acquired by the Government (Commonwealth, State or Territory or local).

If you have any question's relating to Foreign Investment, please contact Byron Cannon on byron@fclawyers.com.au or (07) 5443 6600.