What is Foreign Investment Review Board Approval?

The Foreign Investment Review Board (FIRB) is a board set up basically to examine proposals by foreign citizens (including those that live in Australia on 457 Temporary Resident Visas, subclass 309 or 820 Temporary Resident Visas) to directly invest in Australia. Essentially it is the mechanism by which the government of the day uses to control (increase or decrease) the amount of foreign investment within Australia

In early 2010 the Federal Government announced new rules with respect to foreign citizens purchasing property in Australia. These new rules also apply to foreign citizens that live in Australia (Temporary Residents).

Temporary Residents are required to obtain FIRB approval unless an exemption applies. As of 2010 there are limited exemptions for temporary residents from making an application. Therefore, in the vast majority of cases, an FIRB application will need to be made.

The major exemption is if you are buying the property with your Australian Citizen spouse. 

Spouse includes de facto partner (whether of the same sex or a different sex) – that is, although they may not be legally married, they have a relationship as a couple and live together on a genuine domestic basis (sections 22A and 22B of the Acts Interpretation Act 1901).

If you are a Temporary Resident looking to move into the property you are buying, then FIRB approval is generally just a technicality. MAP will guide you through the process but essentially its is just an extra form you need to complete and send in to the FIRB. 

If you are not looking to live in the property and therefore buy it as an investment, FIRB approval is more difficult. As a general rule, FIRB approval for such purchases will only be granted if the property is brand new, to be built (ie, vacant land) or has been only just built within the past year. 

If you purchase a property as a temporary resident and have obtained FIRB approval for this purchase, then when you move out (whether that is back to your home country or elsewhere in Australia) you will be required to sell the property. 

If of course you have obtained your permanent residency in the meantime then you are no longer a temporary resident so these rules will not apply and you will not be required to sell the property.

Australian Citizens living overseas (expats) buying property in Australia do not require FIRB approval. 

More information on Expat Home Loans here.