What is FIRB?
One of the primary features of Australia’s foreign investment regime is that it requires foreign investors to obtain Foreign Investment Review Board (FIRB) approval (by way of “no objection notification” or “exemption certificate”) before proceeding with a proposed investment.
A significant fee is payable by foreign investors who lodge an application for FIRB approval. Such fees are calculated based on the value of the interest being acquired by the foreign investor.
In addition to FIRB application fees, foreign investors who acquired a residential dwelling must pay an annual vacancy fee. The vacancy fee is payable by foreign investors in circumstances where the dwelling is not occupied, or genuinely availab le for rent (for a term of at least 30 days), for at least 183 days in a 12-month period.
A FIRB vacancy fee, if payable, will generally be equal to the FIRB application fee originally paid by the foreign investor to obtain approval to purchase the property.
FIRB Changes
On 9 April 2024, the Federal Government announced that the amendment of the existing FIRB fee regime to make this change:
- The FIRB application fee for 2nd hand dwelling increased on 9 April 2024.
- It’s now $42300 if the property is under $1 million
- Off the plan still same application sums.
