Foreign Investor Guide Australia 2026-27

Foreign investors face the tightest restrictions on Australian property in decades. The ban on foreign purchases of established dwellings has been extended to 30 June 2029. FIRB application fees remain substantial, state-level foreign surcharges add up to 9% to stamp duty and 5% to annual land tax, and enforcement has intensified dramatically — the ATO issued approximately 300 divestment orders in 2024-25 compared to fewer than 50 in 2018-19.

Data in this article is sourced from the ATO, FIRB, and state revenue offices as at 5 July 2026.

What foreign investors can and cannot buy

What is banned

The ban on foreign purchases of established dwellings, originally set to run from April 2025 to March 2027, was extended by 2 years and 3 months in the 2026 Budget. The ban now runs until 30 June 2029.

Prohibited purchases include:

Established houses (previously lived in)
Existing units and apartments
Second-hand dwellings, even if renovated
Established properties intended for demolition and rebuild (unless satisfying the replacement dwelling exemption)

What is still allowed

Foreign investors can still purchase:

New dwellings — off-the-plan properties and newly constructed homes that have never been occupied
Vacant residential land — with a commitment to build within 4 years
Commercial property — under a separate FIRB regime
Replacement dwellings — demolishing an existing dwelling and building a new one (specific conditions apply)

Narrow exemptions

Four specific pathways exist for foreign buyers who would otherwise be caught by the ban:

Housing supply pathway: Commit to rent out or redevelop the property within 2 years
Temporary residents buying a principal place of residence: Must sell on departure from Australia
Inherited property: Automatically exempt
Spouse of Australian citizen or permanent resident: Joint purchase with Australian spouse

FIRB application fees

FIRB fees are indexed annually. For 2025-26 (the latest published schedule), fees for new or near-new dwellings are:

Up to $1 million: $15,100
$1 million to $2 million: $30,400
$2 million to $3 million: $60,900
$3 million to $4 million: $91,200
$4 million to $5 million: $121,800
$5 million to $6 million: $152,100
$6 million to $7 million: $182,700
$7 million to $8 million: $213,000
$8 million to $9 million: $243,500
$9 million to $10 million: $274,000
$10 million+: $272,700 plus incremental increases up to $1,136,000

Established dwelling fees are approximately three times higher than new dwelling fees at each bracket. For example, an established dwelling up to $1 million costs $45,300 in FIRB fees.

Annual vacancy fee

Foreign-owned dwellings not occupied or genuinely available for rent for more than 183 days in a vacancy year attract a vacancy fee equal to double the original FIRB application fee. This makes holding an empty foreign-owned property extremely expensive.

State-by-state foreign surcharges

Every state except the Northern Territory imposes additional stamp duty and/or land tax surcharges on foreign buyers. These are in addition to FIRB fees and standard transfer duty.

State	Stamp Duty Surcharge	Land Tax Surcharge
NSW	9%	5%
VIC	8%	4%
QLD	8%	3%
WA	7%	No specific surcharge
SA	7%	None
TAS	8%	2%
ACT	None (duty only)	None
NT	None	No land tax

On a $1,000,000 property, a foreign buyer in NSW would pay approximately $90,000 in stamp duty surcharge alone — on top of standard transfer duty of roughly $40,000 and FIRB fees of at least $15,100. The total upfront cost can exceed $145,000 before the property purchase itself.

Enforcement: the ATO's expanded powers

The ATO administers foreign investment compliance with significantly expanded funding and enhanced data-matching capabilities. The enforcement environment has changed dramatically:

Divestment orders: Approximately 300 issued in 2024-25 compared to fewer than 50 in 2018-19
Civil penalties: Up to $4.7 million for corporations and $940,000 for individuals
Criminal penalties: Up to 10 years imprisonment for serious breaches
Data matching: ATO cross-references FIRB applications, state land titles data, immigration records, and ABN registrations

The government has signalled that enforcement intensity will continue to increase. Both major political parties support the tightening of foreign investment rules, so foreign buyers should not expect a return to pre-2025 flexibility.

State-specific developments in 2026-27

NSW: Build-to-rent and retirement village relief

From 1 July 2026, foreign purchasers of operational build-to-rent properties may be eligible for a refund of the 9% surcharge purchaser duty. Similar relief is available for foreign purchasers of operational retirement villages. Developers can also apply for pre-transfer exemption certificates instead of paying and seeking a refund.

Queensland: Developer relief pathway

Queensland's GEN012.1 administrative arrangement, available from 15 December 2025, provides relief from foreign acquirer duty and land tax surcharge for residential land developers undertaking qualifying projects. The qualifying dwelling threshold was lowered from 50 to 20 lots, and a pre-approval pathway is available.

Victoria: Absentee rules remain tight

Victoria's 8% duty surcharge and 4% absentee owner surcharge continue unchanged. The State Revenue Office's compliance program has found over 90% non-compliance rates in investigations.

NT: Most foreign-friendly jurisdiction

The Northern Territory imposes no foreign buyer stamp duty surcharge and no land tax, making it the most accessible jurisdiction for foreign investors — though FIRB rules still apply at the federal level.

Practical implications

For foreign investors, the message from the 2026-27 policy environment is clear: the window for buying Australian property as a foreign investor has narrowed substantially. The established dwelling ban, escalating FIRB fees, combined state surcharges, and aggressive enforcement create a high-cost, high-risk environment.

The viable pathways are:

New builds and off-the-plan purchases — the only property type widely available
Build-to-rent developments — attracting government incentives and, in some states, surcharge relief
Commercial property — not subject to the residential restrictions
Strategic use of temporary resident PPOR rights — with a clear exit plan

FAQ

Can foreign investors buy any property in Australia in 2026-27?

You can buy new dwellings (off-the-plan or newly constructed), vacant residential land (with a 4-year build commitment), and commercial property. Established dwellings are banned until 30 June 2029, with narrow exemptions for temporary residents buying a principal place of residence, inheritance, and joint purchase with an Australian spouse.

How much are FIRB fees for a $1.5 million apartment?

For a new or off-the-plan apartment valued at $1.5 million, the FIRB application fee is approximately $30,400. If the same property were an established dwelling (which would be banned unless an exemption applies), the fee would be approximately $91,200.

Do I need to pay state foreign surcharges as well as FIRB fees?

Yes. FIRB fees are federal. State foreign surcharges on stamp duty and land tax are additional. These are not optional and can add $100,000+ to the cost of a $1 million property in NSW.

What is the annual vacancy fee?

If a foreign-owned dwelling is not occupied or genuinely available for rent for more than 183 days in a vacancy year, you must pay a fee equal to double the original FIRB application fee. This is assessed annually by the ATO.

Is it worth investing in Australian property as a foreigner in 2026-27?

It depends on your objectives. For pure investment, new builds and build-to-rent developments offer legitimate pathways, but the total cost (FIRB fees, state surcharges, vacancy fee risk) is significantly higher than it was before 2025. If you plan to live in Australia as a temporary resident, the PPOR exemption provides a viable route — provided you sell on departure.