Obtaining FIRB Approval for Non-Residents
To date, we have successfully obtained FIRB approval for non-resident clients in over 95% of cases.
Part of the application process involves the payment of an up-front fee. The applicable fees are determined by the property purchase price and are as follows:
- $5,000 for residential land valued less than or equal to $1,000,000
- $10,100 for residential land valued between $1m and $1,999,999
- $20,300 for residential land valued between $2,000,000 and $2,999,999
Depending on whether the property is established or off the plan, foreign persons must meet certain criteria and disclose various documents and personal details in their application. We can assist client in this process as failure by a foreign non-resident to comply with the strict obligations of the Australian Government’s foreign investment review framework may result in:
- Compulsory divestment of the acquired interest
- Civil penalties of up to $45,000 for individuals and $225,000 for corporations
- Criminal penalties of up to $135,000 or 3 years imprisonment for individuals or $675,000 for corporations.
Foreign investors are also subject to a stamp duty surcharge of 4% on the residential property price. In addition, from 2017 they will be required to pay an extra 0.75% annual land tax on these residential properties.