A foreign investor wants to purchase an established residential property in Australia. What FIRB requirement must they typically meet?
Correct Answer
B) They need FIRB approval and generally cannot buy an established dwelling
Foreign persons need approval to buy residential land, and from 1 April 2025 to 30 June 2029 (as extended in the 2026–27 Budget) they are generally banned from buying established dwellings, with limited exceptions. Before and outside that ban, approval for established dwellings was generally limited to cases such as temporary residents buying a home to live in, or redevelopment that adds to housing supply.
Why This Is the Correct Answer
Foreign persons must seek approval under the Foreign Acquisitions and Takeovers Act 1975 before buying residential land, and they are generally barred from established dwellings. From 1 April 2025 to 30 June 2029 (as extended in the 2026–27 Budget) a specific ban applies to foreign persons, including temporary residents, buying established dwellings, subject to limited exceptions.
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A foreign investor purchases an established residential property in Australia for $800,000 without FIRB approval. What is the most likely consequence?
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