The Australian Foreign Investment Review Board (FIRB) examines proposals by foreign persons to invest in Australia. The FIRB is independent but is assisted by the executive to the treasury. The FIRB is to ensure that the foreign investment will benefit Australia.

 

FIRB’s functions include:

Evaluating foreign investment proposals

Pushing Australian equity participation in new investors who want to invest in Australia

Monitor foreign-controlled businesses in Australia

Liaison with state and local governments

 

Foreign investors and temporary residents with temporary visa such as a spouse visa, 457 work visa, a temporary skill shortage (TSS) visa or student visa will need approval from the FIRB when purchasing the investment property and must be a new property or vacant land to build a new property; however, temporary residents can purchase one established dwelling for owner occupied and required to sell the property when no longer live in or leave Australia unless obtain a citizenship or permanent residency then would be able to retain the property.

 

Temporary resident and foreigner do not need FIRB approval when purchasing a property with an Australian citizen or permanent resident as joint tenants and in a spousal relationship, but it doesn’t apply to other relationships like business partners, parent and child, siblings, friends or relatives.

Joint tenants is the most common way for partners to purchase property, and it’s where you and your partner own equal (50/50) portions in the property.

 

Temporary residents need FIRB approval if buying the property with an Australian citizen together as tenants in common and the foreign investor must not be purchasing the property with an Australian citizen as tenants in common.

Tenants in common is where you specify the portion that you will own in the property and dictates your contributions to the mortgage and dividends from any sale. Tenants in common is recommend when purchasing properties with a friend, business partner or even a relative, rather than a spouse because it offers a level of asset protection.

 

FIRB charges an application fee to all foreign investors who want to purchase land or property in Australia. Fees can vary depending on the value of the residential property or land that you want to purchase. Australian citizen, permanent resident or New Zealand citizen will be exempted.

 

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