Foreign Investment Review Board (FIRB)

The Foreign Investment Review Board advises the Treasurer on Australia's foreign investment framework. Foreign persons usually need clearance before buying Australian residential land and certain other property.

An example

A temporary resident wanting to buy an established home checks the foreign investment rules and applies for clearance before signing a contract.

Why it matters

Buying without required clearance can lead to penalties. Lenders will want to see that any required foreign investment clearance is in place before settlement.

Points to check

Check whether you are a foreign person under the foreign investment rules, which can include temporary residents, companies and trusts with foreign interests. Whether clearance is needed depends on the type of land, its value and the buyer, and the rules and fees change from time to time, so read the current guidance on the Foreign Investment Review Board website rather than relying on older information. Many buyers make the contract conditional on clearance, or apply before signing. Allow time for an application to be assessed, because a decision may not arrive quickly. Tell your lender early, since many lenders will not settle until clearance is confirmed, and some lend to foreign buyers on different terms. A foreign buyer may also pay a state foreign purchaser surcharge on duty or land tax, which is separate from the federal clearance process and is set by each state.

Related terms

• Foreign purchaser surcharge
• Transfer duty (stamp duty)

Further reading: Foreign Investment Review Board