Who can buy, what you can buy, and the approvals you'll need as a "foreign person" under Australian law.
Who Counts as a "Foreign Person"?
For residential property rules, you're a foreign person if you are not an Australian citizen, not a permanent resident, and not a New Zealand citizen with a special category visa. Some corporations and trusts also count as foreign persons based on ownership thresholds. The ATO points to the legal definition in the Foreign Acquisitions and Takeovers Act 1975 if you're unsure of your status.
Temporary Residents vs PR/Citizens
- Citizens and permanent residents (ordinarily resident) are not foreign persons.
- Temporary residents are foreign persons under the legislation (including certain bridging visa holders).
What Can a Foreign Person Buy Right Now?
From 1 April 2025 to 31 March 2027, foreign persons are banned from purchasing established dwellings (with limited exceptions). Temporary residents are covered by this ban for established dwellings used as a principal place of residence.
Foreign persons can still seek approval to buy:
- New or near-new dwellings
- Off-the-plan properties
- Vacant residential land (with build conditions)
- In specific circumstances, established dwellings for redevelopment
- Certain employer-provided housing (e.g. for PALM scheme workers)
Do You Need Approval Before You Buy?
Yes — if you're a foreign person buying residential property, you must apply for approval before you acquire the property and pay the application fee. The ATO administers applications via its Online services for foreign investors. Significant penalties can apply for breaches.
The Step-by-Step Process
- Confirm if you're a foreign person under the Act.
- Check the types of property you're allowed to buy.
- Apply for approval through the ATO and pay the fee.
- Complete the purchase in line with any conditions imposed.
After You Settle
Most foreign owners must lodge an annual vacancy fee return and may be liable for a vacancy fee if the property isn't occupied as required. This is an ongoing obligation, not a one-off.
⚠️ Foreign investment rules in Australia are complex and have changed significantly in recent years. Always get current advice from the ATO and a qualified legal or financial adviser before proceeding.
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