FIRB Approval 2026: $15,100 Fee, 30-Day Process, and the New Property Ban

Introduction

The Foreign Investment Review Board (FIRB) application framework has consolidated three changes that define the 2026 landscape for non‑resident purchasers of Australian residential property. The headline fee rises to $15,100 for the first property‑value tier. The statutory decision clock remains fixed at 30 days, though complex matters regularly extend beyond that metric. Most significantly, a temporary prohibition on foreign acquisition of established dwellings—operative from April 2025 and confirmed to span 2026—removes a large segment of the housing stock from foreign‑buyer eligibility. Independent Australian mortgage intelligence shows that each of these levers directly affects English‑speaking borrowers who rely on FIRB clearance as a condition precedent to loan settlement.

The FIRB Fee for 2026: $15,100 and the Tiered Structure

The base fee for a residential real estate application in 2026 is $15,100. It applies where the purchase price of the dwelling is less than $1 million. The figure is reached by annual indexation under the Foreign Acquisitions and Takeovers Fees Imposition Act 2015. For financial year 2024‑25, the corresponding fee was $14,100; the increase reflects the Consumer Price Index uplift prescribed by the Act and recorded in the FIRB fee schedule.

Above the $1 million threshold, the fee climbs in steps that mirror the acquirer’s consideration. The tiered scale for 2026 is set out below:

• Residential land ≤ $1,000,000: $15,100
• Residential land > $1,000,000 and ≤ $2,000,000: $30,200
• Residential land > $2,000,000 and ≤ $3,000,000: $60,400
• Residential land > $3,000,000 and ≤ $4,000,000: $90,600
• Residential land > $4,000,000 and ≤ $5,000,000: $120,800

For higher‑value parcels the fee increases by $30,200 per additional $1 million of consideration, with a cap of $1,208,000 for residential land valued at $50 million or above. These levies are payable at the time the application is submitted and are non‑refundable, even if approval is refused or the transaction does not proceed.

Vacant commercial land and non‑residential agricultural land attract separate fee scales, but the $15,100 base charge has become the immediate budget item for English‑speaking mortgage borrowers who are not Australian citizens or permanent residents and who intend to buy a home‑unit, house, or townhouse.

The 30‑Day Statutory Process: Clock and Reality

Section 77 of the Foreign Acquisitions and Takeovers Act 1975 states that the Treasurer must make a decision within 30 days after the application is received. The period is counted in calendar days. The decision can be one of no objection, conditional approval, or a prohibition order. If no decision is communicated within that window, the applicant may seek an order from the Federal Court compelling a determination, though the more common commercial response is an extension of time granted by the applicant.

On its compliance page, the Foreign Investment Review Board acknowledges that the statutory timeframe commences only when all required information and the correct fee have been lodged. Incomplete applications restart the clock. For straightforward acquisitions—a single new dwelling by an individual who clearly falls within the eligible categories—the 30‑day period is routinely met. Where the transaction involves a trust structure, multiple parcels, or an entity that requires further probity checks, actual decision‑making can extend to 60 or 90 days. The government’s published service standard notes that 80 per cent of straightforward residential applications are decided within 30 days, while the remainder may take up to six months.

Australian mortgage lenders are attuned to this variability. The FIRB approval letter is invariably a document required by the bank or non‑bank lender before an unconditional loan offer is issued and prior to settlement. Borrowers must therefore lodge their FIRB application early enough to accommodate the full statutory window plus any extensions, otherwise settlement dates will slip.

The New Property Rule 2026: Ban on Established Dwellings

On 23 February 2025, the Commonwealth Treasurer announced a temporary ban on foreign persons purchasing established dwellings. The restriction is in force from 1 April 2025 and will remain for at least two years, through to 31 March 2027. The official Treasury media release frames the ban as a measure to lift home‑ownership rates by channelling foreign capital exclusively into new housing supply.

Under the new rule, an established dwelling is any residential property that has been previously occupied or sold as a completed home, even if it has been renovated. A foreign person—defined to include temporary residents, foreign‑owned companies, and trustees of foreign trusts—cannot acquire an interest in such a dwelling. The ban is not limited to purchases at auction or private treaty; it also extends to indirect acquisitions, such as an increase in shareholding in a land‑holding entity where the entity holds an established dwelling.

The government has listed narrow exemptions: acquisitions that form part of a redevelopment proposal that will genuinely increase housing stock, and certain commercial residential premises such as hotels or student accommodation. New dwellings—those that have never been occupied and are sold off‑the‑plan or within six months of completion—remain eligible for foreign investment, provided the developer has FIRB pre‑approval to sell to foreign buyers.

For mortgage borrowers, the effect is binary: an individual who is not an Australian citizen or permanent resident cannot buy an existing house or apartment in 2026. Their search must be confined to newly‑built stock, which influences both the available price‑points and the type of lender product available, because a number of non‑bank lenders will only lend against completed, established dwellings.

Mortgage Borrower Implications: Cash Flow, Timing, and Lender Requirements

FIRB approval is a condition precedent to mortgage settlement for any foreign person. Lenders treat the FIRB letter as a mandatory document, no different from a valuation or a certificate of title. The $15,100 fee—non‑refundable and payable upfront—enters the borrower’s cash‑flow calculation at the pre‑approval stage. Together with the purchase deposit and standard closing costs (stamp duty, legal fees, and mortgage registration), the FIRB charge raises the total funds‑to‑complete.

A borrower targeting a $950,000 off‑the‑plan apartment in 2026 would face:

• Deposit (typically 20–30% for non‑resident loans): $190,000–$285,000
• FIRB fee: $15,100
• NSW transfer duty (roughly $33,500 on that value)
• Legal and conveyancing: $2,500–$4,000

The total initial cash requirement before the lender advances the loan proceeds can exceed $245,000, depending on the deposit ratio the lender imposes on a foreign‑income borrower.

Timing is the second discipline. The 30‑day statutory window means a purchaser should allow at least 40–45 calendar days between FIRB lodgement and settlement to absorb administrative handling. Where settlement is tied to an existing finance‑approval expiry, any FIRB delay can force a re‑application for finance, with associated fees and interest‑rate risk.

Lenders also price the risk. Non‑resident mortgage products currently attract a rate premium of 80–120 basis points over resident variable rates. A few smaller non‑bank lenders may offer a FIRB‑specific product with shorter settlement timelines, but the overall cost‑of‑funds remains higher. All of these elements—fee, process, and product pricing—converge to make FIRB clearance a hard constraint in the loan origination chain.

Compliance and Enforcement: ATO Oversight and Penalty Exposure

The Australian Taxation Office (ATO) is the compliance arm for residential real estate foreign investment. It administers the vacancy fee (doubled for 2025‑26 to $38,100 for a property with a foreign‑ownership‑stipulated value of $2 million or more, and scaling upward) and the land‑tax surcharge regimes of Victoria, New South Wales, Queensland, and Western Australia. ATO data‑matching programs cross‑reference FIRB approvals with state land‑titles data, migration records, and utility usage to detect breaches.

Unauthorised acquisition of Australian residential land carries civil penalties under the Act. For an individual, the maximum pecuniary penalty is the greater of $1,332,000 (1,000 penalty units) or 10 per cent of the consideration for the acquisition. For a corporation, the cap lifts to $6,660,000 (5,000 penalty units) or 10 per cent of the consideration. Criminal penalties apply where the person knowingly fails to obtain approval; these can result in imprisonment for individuals and fines for companies up to $333,000 or three times the capital gain derived.

The ATO’s 2024–25 compliance program produced more than 200 divestment orders, forcing foreign owners to sell property acquired in breach of the rules. In 2026, with the established‑dwelling ban in place, the ATO is expected to expand its enforcement to developer audits and to jointly‑held entities where a foreign person holds a minority interest in a land‑holding vehicle that acquires an established home.

Borrowers who receive FIRB approval must also be aware that the approval is personal and conditional. It does not transfer to a new entity or survive a change in the borrower’s visa status. Lenders and borrowers alike must monitor post‑settlement obligations: if a temporary resident ceases to use the property as their principal place of residence, they must sell within 90 days, failing which the ATO may issue a divestment order.

Conclusion: FIRB as a Fixed Input in 2026 Mortgage Planning

The 2026 FIRB environment is defined by a $15,100 base fee, a statutory 30‑day decision process that demands early application, and a property rule that closes the established‑dwelling market to foreign purchasers. All three elements are non‑negotiable and front‑loaded. For an English‑speaking borrower seeking an Australian mortgage, the FIRB approval is as fundamental as the loan itself—without it, settlement cannot occur, and holding the property becomes unlawful.

Information only, not personal financial advice. Consult a licensed mortgage broker.