Understanding FIRB in 2026: A Step by Step Guide for Temporary Residents
For many in the Nepali and Indian communities, the path to owning a home in Australia starts well before permanent residency. If you hold a temporary visa such as a 482 (TSS), 491 (Regional), 485 (Graduate) or 500 (Student), the Foreign Investment Review Board (FIRB) framework decides what you can buy, what it costs, and what you must do after settlement.
The rules changed sharply in 2025 and again from 1 July 2026. Established homes are now closed to most foreign persons, application fees have been indexed upward, and the annual vacancy fee continues to catch owners who leave a property empty. This guide sets out what applies right now.
Read this before you sign anything
Buying without approval when approval is required can lead to forced disposal of the property, along with civil and criminal penalties. Approval must be in place before you become contractually bound, which is why your contract needs a clause making it conditional on FIRB approval.
What FIRB Is and Whether You Need Approval
FIRB advises the Treasurer on foreign investment, and the Australian Taxation Office administers residential applications. Under the framework, a foreign person must generally obtain approval before acquiring an interest in residential land.
Who counts as a foreign person
- Temporary visa holders including 482, 491, 485, 500, and temporary partner visas
- Non-residents living outside Australia
- Foreign companies and trusts, or entities with substantial foreign ownership
Who does not
- Australian citizens
- Permanent residents, including subclasses 189, 190, 186, 887 and 801
- New Zealand citizens holding a Special Category Visa, subclass 444
The spousal exemption
An acquisition made as joint tenants with a spouse who is an Australian citizen, permanent resident or eligible New Zealand citizen is generally exempt from the approval requirement. Both names must be on the title as joint tenants rather than tenants in common. State foreign buyer duty surcharges can still apply, so confirm the position with your conveyancer and the relevant state revenue office before you sign.
| Your situation | Approval needed | Notes |
|---|---|---|
| Temporary visa holder buying alone | Yes | Apply before you are contractually bound |
| Two temporary visa holders buying together | Yes | Each buyer must be covered |
| Temporary visa holder and citizen or PR spouse as joint tenants | No | Exemption applies, duty surcharges may still apply |
| Permanent resident buying alone | No | Treated the same as a citizen |
| Australian citizen buying alone | No | No restriction |
| Non-resident living overseas | Yes | Stricter conditions apply |
The Established Dwelling Ban to 30 June 2029
This is the single biggest change for temporary residents, and it overrides most older guides still circulating online.
Foreign persons cannot buy established dwellings
From 1 April 2025 to 30 June 2029, foreign persons, including temporary residents, are banned from purchasing established dwellings in Australia unless a limited exception applies. The measure was originally set to end on 31 March 2027 and has since been extended.
The older rule that let a temporary resident buy one established home to live in no longer applies to new purchases during this period.
The limited exceptions
The exceptions are narrow and mostly commercial in nature:
- Redevelopment that genuinely increases housing supply, with a substantially higher additional dwelling threshold than the old one for one replacement dwelling
- Investments that support housing availability at commercial scale, such as retirement villages, aged care and purpose built student accommodation
- Existing build to rent developments
- Housing provided by employers for workers under the Pacific Australia Labour Mobility scheme
Separately, the joint tenant acquisition with a citizen or permanent resident spouse is treated as an exempt acquisition rather than a foreign purchase. If that is your plan, get it confirmed in writing by your conveyancer before you make an offer.
What this means in practice
If you hold a temporary visa and you are buying in your own name, your realistic options are a new or near-new dwelling or vacant land you will build on. Plan your search around that from the start rather than discovering it after you have fallen in love with a 1990s townhouse.
The 2026-27 FIRB Fee Schedule
Application fees are indexed each 1 July and are based on the higher of the purchase price and the market value. These are the fees that apply from 1 July 2026 to 30 June 2027.
| Property value | New or near-new dwelling, and vacant land | Established dwelling |
|---|---|---|
| Under $75,000 | $4,600 | $13,800 |
| $1 million or less | $15,600 | $46,800 |
| $1m to $2m | $31,300 | $93,900 |
| $2m to $3m | $62,600 | $187,800 |
| $3m to $4m | $93,900 | $281,700 |
| $4m to $5m | $125,200 | $375,600 |
| Above $5m | Fees continue to step up by roughly $31,300 per additional million for new dwellings, and about three times that for established dwellings | |
The established dwelling column matters mainly for the limited exception cases and for buyers who are not caught by the ban. For most temporary residents buying now, the new dwelling and vacant land column is the one to budget against.
Why established dwelling fees are about three times higher
The pricing is designed to push foreign investment toward new housing supply rather than competition for existing stock. The same policy thinking sits behind the current purchase ban.
Fees are not refundable
The application fee is not refunded if your application is refused, if the sale falls through, or if you change your mind. Be certain about the property, and have your finance position confirmed, before you lodge.
What You Can Still Buy
New and near-new dwellings
The most flexible option
- You can apply to buy more than one
- You can live in the property or rent it out
- There is no requirement to sell when you leave Australia
- The vacancy fee still applies if the property sits empty
A dwelling is new when it has not previously been sold as a dwelling and has not been occupied for more than a short period. Off the plan apartments, newly completed houses and near-new stock sold by the developer generally qualify. A property built two years ago that someone has lived in is established, not new, whatever the marketing says.
Vacant land
Build within the approval conditions
Vacant residential land can be purchased with approval, on the condition that construction begins and is completed within the timeframes set out in your approval, commonly four years. Failure to build can lead to forced disposal and penalties, so confirm the exact conditions written on your approval certificate and diarise them.
Comparison at a glance
| Feature | New or near-new dwelling | Vacant land | Established dwelling |
|---|---|---|---|
| Available to temporary residents now | Yes | Yes | No, banned to 30 June 2029 |
| Number you can apply for | More than one | More than one | Not applicable |
| Can you rent it out | Yes | After construction | Not applicable |
| Must you sell when you leave | No | No | Not applicable |
| Fee up to $1m, 2026-27 | $15,600 | $15,600 | $46,800 |
| Construction obligation | No | Yes | Not applicable |
The Vacancy Fee Trap
The annual vacancy fee is the cost most owners underestimate. It applies where the property is neither occupied nor genuinely available for rent for at least 183 days in a vacancy year.
The fee is double your application fee, every year
On a $900,000 new dwelling approved in 2026-27, the application fee is $15,600 and the annual vacancy fee is $31,200. Leave that property empty for three years and the vacancy fees alone exceed $93,000.
| Property value, new dwelling | Application fee | Annual vacancy fee | Three years vacant |
|---|---|---|---|
| $1 million or less | $15,600 | $31,200 | $93,600 |
| $1m to $2m | $31,300 | $62,600 | $187,800 |
| $2m to $3m | $62,600 | $125,200 | $375,600 |
How to avoid it
Four practical options
Live in it. Occupy the property as your home for at least 183 days in the vacancy year and keep the evidence.
Rent it out properly. The property must be genuinely available at a market rent. List it with an agent, price it realistically, and keep advertising records, inspection records and applications. A rent set far above market is not genuine availability.
Sell before you leave Australia for good. This removes both the vacancy fee exposure and the ongoing reporting obligation.
Check whether an exemption applies. Limited exemptions can apply in circumstances such as major renovation works or where the dwelling is legally unfit for occupation. Apply with supporting evidence rather than assuming.
You must lodge a vacancy fee return every year
A return is required for each vacancy year even when the property was occupied the whole time. If you do not lodge, the property is treated as vacant and the fee is charged, with penalties on top. Diarise the lodgment date shown on your ATO account each year.
Evidence worth keeping
Occupied by you
- Electricity, gas, water and internet accounts in your name
- Council rates and owners corporation notices
- Bank statements showing local spending
- Employment records and school enrolment records
Rented or available for rent
- Lease agreements and the property management agreement
- Advertising history on major portals, with dates
- Inspection logs and tenant applications
- Rent receipts and matching bank deposits
- A market rent appraisal supporting your asking rent
Step by Step Application Process
Identify the specific property
Approval attaches to an address. There is no general approval that lets you bid on anything, although an exemption certificate can be sought in some circumstances if you are bidding on several properties.
Make the contract conditional on approval
Ask your conveyancer to include a clause making the contract subject to FIRB approval. This protects you if approval is refused or delayed past your settlement date.
Gather your documents
Collect identity, visa, property and funding evidence. Documents in another language need a NAATI certified translation.
Apply through the ATO online services portal
Residential applications are lodged with the ATO, not on the FIRB website. You will need to register for access first, which can take a few days.
Pay the application fee
The statutory decision period does not start until the correct fee is paid in full. Pay immediately after lodging.
Respond to any request for information
A request for further information pauses the clock. Answer quickly and completely to avoid adding weeks to the decision.
Receive the decision
Approval arrives as a no objection notification setting out conditions and an expiry date, commonly twelve months. Read the conditions carefully, because they bind you after settlement.
Settle within the approval period
Align your finance approval, valuation and settlement date with the approval expiry. Your broker should be managing both timelines together.
Meet your ongoing obligations
Register the property, lodge your annual vacancy fee return, and comply with any construction or occupancy conditions on the notification.
Documents You Will Need
Identity and visa
- Certified copy of your passport photo page
- Visa grant notice or VEVO check
- Australian driver licence if you hold one
- Proof of your current Australian address
Property
- Contract of sale or the property details if you have not yet signed
- Lot and plan number, and the property type
- Evidence the dwelling is new or near-new, such as a developer statement
Funding
- Evidence of the funds to complete, such as savings statements or a loan pre-approval
- Source of funds explanation for any overseas transfers
- NAATI certified translations of any foreign language statements
Application Timeline
| Stage | Typical timing | What happens |
|---|---|---|
| Portal registration | 2 to 7 days | Set up ATO online access before you need it |
| Lodgment and fee | Day 0 | The decision period starts once the fee is paid |
| Assessment | Day 1 to 30 | Any request for information pauses the clock |
| Decision | 30 to 90 days | Statutory period is 30 days, complex cases take longer |
| Settlement | Within the approval period | Commonly twelve months from the notification |
Build the delay into your contract
Allow at least 60 days between lodgment and your settlement date, and longer if your income or funds are complex. A short settlement on a contract that is not conditional on approval is the fastest way to lose a deposit.
Foreign Buyer Stamp Duty Surcharges
State surcharge duty sits on top of the FIRB fee and normal transfer duty. Rates apply to the dutiable value of the property.
| State or territory | Foreign buyer surcharge | Surcharge on a $700,000 purchase |
|---|---|---|
| New South Wales | 9% | $63,000 |
| Victoria | 8% | $56,000 |
| Queensland | 8% | $56,000 |
| Tasmania | 8% | $56,000 |
| Western Australia | 7% | $49,000 |
| South Australia | 7% | $49,000 |
| Australian Capital Territory | No duty surcharge | An annual land tax surcharge applies instead |
| Northern Territory | None | Nil |
Illustration: total upfront cost, $700,000 new dwelling in Victoria
- Deposit at 10%: $70,000
- FIRB application fee: $15,600
- General transfer duty: about $37,070
- Foreign purchaser additional duty at 8%: $56,000
- Conveyancing: about $2,000
- Building and pest inspection: about $600
- Total upfront: about $181,270
This is an illustration only. Duty is calculated on the dutiable value using current state rates, and concessions available to citizens and permanent residents generally do not apply to foreign purchasers.
Common Mistakes to Avoid
- Signing an unconditional contract before approval. At auction in particular, bids are usually binding, and approval will not arrive in time.
- Relying on an older guide. Anything that tells a temporary resident they can buy one established home to live in is out of date for purchases made now.
- Assuming a property is new. Get written confirmation from the developer or vendor before you lodge and pay a fee on the wrong basis.
- Forgetting the vacancy fee return. Not lodging is treated as vacancy, and the fee is charged automatically.
- Budgeting for the FIRB fee but not the duty surcharge. In most states the surcharge is the larger of the two.
- Leaving finance to the end. Lender policy for temporary visa holders varies widely on visa subclass, deposit, income type and maximum loan to value ratio. Sort the lender before you sort the property.
Frequently Asked Questions
Do I need FIRB approval as a temporary visa holder?
In most cases yes. Holders of temporary visas such as 482, 491, 485 and 500 are foreign persons and need approval before acquiring residential land. The main exception is buying as joint tenants with a spouse who is an Australian citizen, permanent resident or eligible New Zealand citizen.
Can I buy an established home on a temporary visa in 2026?
No, other than in limited exception cases. From 1 April 2025 to 30 June 2029, foreign persons including temporary residents are banned from purchasing established dwellings. The exceptions are narrow and mostly commercial, covering redevelopment that adds significant housing supply, commercial scale housing such as student accommodation and aged care, existing build to rent developments, and employer housing under the Pacific Australia Labour Mobility scheme.
How much are FIRB fees in 2026-27?
For applications from 1 July 2026, a new or near-new dwelling or vacant land valued at $1 million or less attracts a fee of $15,600. The fee is $31,300 for $1m to $2m and $62,600 for $2m to $3m. Established dwelling fees are about three times higher at $46,800, $93,900 and $187,800 for the same brackets. Fees are indexed on 1 July each year.
What is the vacancy fee and how do I avoid it?
The annual vacancy fee applies where a dwelling is neither occupied nor genuinely available for rent for at least 183 days in a vacancy year. It is double the application fee, so $31,200 a year on a property that attracted a $15,600 fee. Avoid it by living in the property, renting it at a market rent with proper records, or selling before you leave Australia. You must lodge a vacancy fee return every year even when the property was occupied.
How long does approval take?
The statutory decision period is 30 days from payment of the correct fee, but in practice decisions commonly take 30 to 90 days. A request for further information pauses the clock. Allow at least 60 days when you set a settlement date.
Are the fees refundable if my application is refused?
No. Application fees are not refunded if approval is refused, if the contract falls through, or if you decide not to proceed. Confirm your finance position and the property details before you lodge.
Do I need approval if I am buying with my permanent resident partner?
Generally no, provided you buy as joint tenants and both names are on the title. Tenants in common does not qualify. State foreign buyer duty surcharges can still apply depending on the state, so confirm with your conveyancer and the state revenue office.
What happens if I leave Australia before getting permanent residency?
For a new or near-new dwelling or vacant land there is no requirement to sell. Your obligations continue, which means keeping the property occupied or genuinely available for rent for at least 183 days a year, lodging your annual return, and meeting any construction conditions. If none of that is practical from overseas, selling may be the cleaner option.
Can I get a home loan while my application is pending?
Yes. Lenders can assess and conditionally approve your loan while approval is pending, and settlement proceeds once the no objection notification is issued. Lender policy for temporary visa holders varies on visa subclass, acceptable income, maximum loan to value ratio and whether foreign income is accepted, so compare policy before you apply.
What counts as a new dwelling?
A dwelling that has not previously been sold as a dwelling and has not been occupied for more than a short period. Off the plan apartments, newly completed houses and near-new developer stock generally qualify. A property that has been lived in is established, regardless of how recently it was built.
Get your finance and your FIRB timeline working together
Everest Home Loans works with temporary visa holders across Australia, matching your visa subclass and income to lenders who will actually approve it, and keeping your loan timeline aligned with your approval. We speak English, Nepali and Hindi.
Book a free consultation Call 0431 790 889- Coordinate your FIRB and loan approval timelines
- Calculate the full upfront cost including fees and duty surcharges
- Match your visa subclass to lender policy before you apply
- Connect you with conveyancers who handle foreign purchaser matters
- Keep you on top of vacancy fee reporting after settlement
Email: raj@everesthomeloans.com.au
Office: 35 Captain Pearson Drive, Mickleham VIC 3064
Rated 5.0 on Google from more than 450 reviews
Rajesh Kandel
Director and Senior Mortgage Broker at Everest Home Loans. A mortgage broker since 2015, Rajesh works with first home buyers, temporary visa holders, refinancers and investors across Australia, with multilingual support in English, Nepali and Hindi.
Sources
- Australian Taxation Office, Residential fees for a foreign person: ato.gov.au
- Foreign Investment Review Board, Changes to foreign purchases of established dwellings: foreigninvestment.gov.au
- Foreign Investment Review Board, Schedule of fees: foreigninvestment.gov.au
- State and territory revenue offices, foreign purchaser additional duty rates
This article is general information only and is current as at September 2026. It does not take into account your objectives, financial situation or needs. Foreign investment rules, application fees and state duty surcharges change regularly, and fees are indexed each 1 July. Confirm the current position with the Australian Taxation Office, your conveyancer or solicitor, and the relevant state revenue office before acting. Lending criteria, terms, conditions, fees and charges apply.
Approval Rate
Over 98%*
Expertise/Experience
11 Years
Loan Approved
400+ Millions
Home Settled
1500+
Book an appointment with our Mortgage and Finance Broker for expert guidance on home loans, refinancing, investment properties, and more.
We Speak · English · Nepali · Hindi
At Everest Home Loans, we are more than just a mortgage broker. We are your dedicated partners on your journey to homeownership.
Contact
0431 790 889
03 9005 3955
raj@everesthomeloans.com.au
35 Captain Pearson Drive,
Mickleham VIC 3064
Kandel & Co Pty Ltd t/a Everest Home Loans is an Authorised Credit Representative – 506833, and Rajesh Kandel is an Authorised Credit Representative number – 476341 of Connective Credit Services Pty Ltd ABN 77 161 731 111 (Australian Credit Licence No.389328).
© Copyright 2026 | Everest Home Loans | All Rights Reserved
