Which foreign investors are required to seek FIRB approval before purchasing residential property in Australia?
Correct Answer
A) All foreign persons, whatever their nationality, entity type or the price paid.
Under the Foreign Acquisitions and Takeovers Act 1975, every foreign person needs approval before acquiring residential land, regardless of nationality, whether they are an individual or an entity, and the price. Australian citizens, New Zealand citizens and permanent residents who are ordinarily resident in Australia are not caught.
Why This Is the Correct Answer
For residential land the threshold is nil and there is no exemption based on nationality, treaty status or investor type. Any foreign person, individual or entity, needs approval before buying.
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