With a chronic shortage of housing, and rising house prices, the Australian property market is no place for the faint-hearted – and if you’re a budding first homebuyer, it can be downright soul-destroying.
One of the most hotly debated aspects of housing policy is foreign investment, which has the Australian Federal Government and The Foreign Investment Review Board (FIRB) working on new initiatives to ensure foreign investment is consistent with the national interest.
Western Australia also has its own rules around foreign investment in residential property, which we’ll come to in a moment.
But first, a quick overview of the foreign investment landscape in Australia.
What is the Foreign Investment Review Board? (and why does It matter?)
The Foreign Investment Review Board (FIRB) is a federal advisory body that reviews proposals by foreign persons to invest in Australia. Importantly, FIRB approval is a legal requirement for most foreign purchasers of Australian residential property.
This approval process is designed to ensure that foreign investment is consistent with the national interest (and many experts believe that’s not necessarily the case). For example, in the 2022-23 Financial Year, foreign buyers purchased 5360 residential properties in Australia worth around $5 billion. Foreign buyers must also apply for FIRB approval before acquiring residential property, unless a specific exemption applies. Importantly, this applies not only to individuals but also to companies and trusts controlled by foreign persons.
Recent FIRB Reforms
In April 2025, the Australian Government introduced a two-year ban on foreign purchases of established dwellings. Running until March 2027, the measure is aimed at easing pressure on housing supply and helping local buyers compete in an overheated market. (of course, whether this turns out to be the case or not only time will tell). There are a few exceptions—mostly aimed at boosting housing stock. This includes: redevelopments where the foreign buyer intends to demolish the existing dwelling and replace it with multiple new homes. Build-to-Rent Projects with at least 50 dwellings. And Commercial Residential that provide large-scale student housing, aged care, or similar facilities.
Other reforms include faster processing targets. (The Treasury has committed to processing 50% of FIRB applications within 30 days). A crackdown on what’s known as ‘Land Banking’. This will mean Investors who acquire land and fail to develop it in a timely manner are now under greater scrutiny. The government is using audits and compliance checks to ensure developments proceed as promised.
In Western Australia, there’s an additional 7% Surcharge
In Western Australia, there’s another hurdle for foreign buyers. (and another cost). It’s called the Foreign Buyers Duty (FBD). Introduced in 2019, FBD imposes a 7% surcharge on the dutiable value of residential property purchased by foreign persons or entities in Western Australia. This is on top of standard stamp duty, making our state one of the more expensive options for foreign residential investors. The duty applies to foreign individuals, foreign corporations (including Australian companies with foreign control), and Trusts with significant foreign beneficiaries.
For more details on foreign investment in Australia visit the FIRB website at foreigninvestment.gov.au
THERE’S A TRUCKLOAD OF REASONS TO CHOOSE C & R SETTLEMENTS IN MANDURAH.
Here at C & R Settlements in Mandurah, we’re renown for our hard work, attention to detail, and going the extra mile for our clients. We’re Mandurah’s Number One independent settlement agent with over 80,000 settlements under our belt (and still going strong).
As an added bonus, when you choose C & R Settlements, you can use our free courtesy truck when it’s time to make the move. All you’ll need is a standard driver’s licence (and perhaps a few strong mates to lend a hand on moving day). Just be aware that our free courtesy truck is very popular, and bookings are essential. Just another reason to make the move to C & R Settlements in Mandurah. For details, call us on 9581 2148. Or email mandurah@crsetts.com.au