Australia has strict rules and regulations about foreign investment.
The Australian government classifies you as a foreign person if you intend to buy residential or commercial property in this country if you are not:
- A citizen of Australia
- A permanent resident of Australia
- A New Zealand citizen with a special category visa
- A permanent resident of Australia who does not ordinarily reside in Australia may also be considered a foreign person in some circumstances
From April 2025 until March 2027, foreign persons are banned from purchasing established residential property in Australia. This includes temporary residents buying a home for use as a principal place of residence.
Temporary residents can still apply for approval to buy vacant land, or new residential properties.
Currently, the type of residential property that a foreign person can buy in Australia include:
- A new dwelling
- An established dwelling for redevelopment
- An off-the-plan property
- Vacant residential land
- An established dwelling for a foreign company that employs workers from Pacific Island countries and Timor-Leste and are required to provide housing for them.
Anyone from overseas looking to buy an interest in commercial land will need approval from the Foreign Investment Review Board (FIRB).
The value of that investment must be above a certain monetary threshold – for vacant commercial land, the monetary threshold is $0 for all investors, and for developed commercial land, the monetary threshold is $339 million.
However, even if the proposed investment in commercial land does not require approval under monetary thresholds, or other regulations, if the land is considered “national security land” it will still require FRIB approval.
The Treasury department reviews foreign investment proposals on a case-by-case basis.
This is to ensure the proposed investment does not compromise Australia's national interests or security.
The FIRB then advises the Australian Treasurer, who makes the final decisions.
If you’re looking for guidance about foreign investment, including:
- Who needs approval
- How proposals are assessed
- Monetary thresholds that trigger a review under the foreign investment framework
- Compliance obligations for foreign investors
- How to apply
- you can go to: https://foreigninvestment.gov.au
It’s important for potential investors to understand Australia’s rules, laws, requirements, and decisions.
Legal advice from the property, commercial, and investment specialists at GLG Legal Brisbane can help you. Contact our office to make an appointment by calling (07) 3161 9555 or emailing info@glglegal.com.au