The Foreign Investment Guidelines outline the correct protocol for foreign-non residents and temporary residents to make investment purchases within Australia.
In addition, all temporary residents seeking to purchase an existing property in Australia will now be brought within the FIRB notification, screening and approval process.
Temporary residents will be required to notify, be screened or be approved by FIRB. The changes ensure that temporary residents are subject to the same compulsory notification, screening and approval requirements required of foreign non-residents.
Temporary residents who are approved will have to:
To view the REIA's media release on this issue, click here. To view the Assitant Treasurer's media release on this issue, click here.
To view the REIA's media release on this issue, click here.
To view the Assitant Treasurer's media release on this issue, click here.
Australia's eligibility rules for foreign investors in residential real estate are designed to ensure that foreign investment in residential property adds to residential housing supply and promotes new construction activity.
Australia's foreign investment regime relies on a combination of legislation, primarily the Foreign Acquisitions and Takeovers Act 1975 (FATA), its related regulations, the Foreign Acquisitions and Takeovers Regulations 1989 (Regulations) and an accompanying Government Policy (Policy). Each of these is administered by the Foreign Investment Review Board (FIRB).
Under Australian law, the Foreign Investment Review Board (FIRB) examines proposals by foreign persons to acquire interests in residential real estate in Australia, and makes recommendations to the Government on whether those proposals are suitable for approval under its foreign investment policy. Non-residents require FIRB approval before buying any residential real estate in Australia.
FIRB routinely monitors compliance with the policy. Real estate agents should ensure they fully understand the policy, as there can be severe penalties for non-compliance. Breaches of the Foreign Acquisitions and Takeovers Act 1975 can result in divestment of the property, as well as fines and/or imprisonment for foreign purchasers. Foreign investors may forfeit their deposit and may also be liable for damages for breach of contract.
