Foreign investment in Australian real estate is regulated under the *Foreign Acquisitions and Takeovers Act 1975* (Cth) and related rules administered by the Australian Treasury. Whether a buyer is a foreign person depends on the statutory definitions and the buyer's circumstances. The rules can apply to individuals, companies and trusts, so citizenship alone may not answer the question where an entity or trust is buying.
The current federal policy generally prohibits foreign investors from buying established dwellings between 1 April 2025 and 30 June 2029, subject to limited exceptions. Different rules may apply to new dwellings, off-the-plan property, vacant land and acquisitions intended to increase housing supply. Australian citizens, permanent residents and certain New Zealand citizens are treated differently under the applicable rules, and other exemptions may be available.
Where approval is required, the purchaser should confirm the position before signing and obtain specialist advice on the application, timing, conditions and consequences of non-compliance. If a contract is entered into before approval, it should not be assumed that the purchaser can simply withdraw if approval is refused. Any approval condition and termination right must be drafted carefully and comply with the law.
Federal approval requirements are distinct from Victorian foreign purchaser additional duty. A purchaser may need to consider both, as well as any annual vacancy fee or foreign ownership reporting obligation.
This is the kind of matter CMK Legal's property and conveyancing team handles.
Do not rely on an old guide to the established-dwelling restrictions. Check the current Treasury guidance for the property type, purchaser and proposed use before committing to the transaction.
Law referenced: *Foreign Acquisitions and Takeovers Act 1975* (Cth); *Duties Act 2000* (Vic). Current official guidance: https://foreigninvestment.gov.au/guidance/types-investments/residential-land