If you're planning to invest in Australia
Foreign investment is essential to Australia’s prosperity. It has helped build Australia’s economy and will continue to enhance the wellbeing of Australians by supporting financial growth.
If you are a foreign person who is planning to invest in assets in Australia, you must:
- apply for the relevant approval to invest before purchasing an asset
- register the asset on the Register of Foreign Ownership of Australian Assets (the Register) using Online services for foreign investors after you purchase the asset
- comply with any ongoing requirements whilst holding the asset, such as lodging an annual vacancy fee return for a residential property.
Depending on the type of investment, you will need to seek approval from either:
- Australian Taxation Office (ATO) – for residential assets
- Treasury Foreign InvestmentExternal Link (previously Foreign Investment Review Board) – for all other investments. These include business, commercial or agricultural land, and mining, production and exploration tenements.
We recommend you seek independent legal advice before applying for foreign investment approval.
Who is a foreign person
Broadly, the definition of a foreign person extends to:
- an individual who is not an Australian citizen or permanent resident
- a corporation in which a foreign person(s) holds at least a 20% interest
- a trustee of a trust in which a foreign person(s) and their associates hold at least 20% of the beneficial interest in the income or property of the trust.
For residential land investments, special rules apply to foreign persons who are temporary residents.
A temporary resident is an individual who either:
- holds a temporary visa that allows you to stay in Australia for a continuous period of 12 months or more (regardless of how long remains on your visa)
- resides in Australia, has applied for a permanent visa and holds a bridging visa that allows you to stay in Australia until your application is finalised.
To check if you are considered a foreign person, refer to:
- Foreign investment terms and definitions
- Foreign InvestmentExternal Link website
- Department of Home Affairs website – Explore visa optionsExternal Link.
Approvals to invest in Australia
Depending on your investment, a foreign person may need the following approvals before you are able to invest in Australia:
- Residential land (property)
- Business investments
- Commercial land
- Agricultural land
- Mining, production and exploration tenements
Residential land (property)
You are required to apply for approval with the ATO to purchase all types of Australian residential land including:
- a new dwelling
- an established dwelling
- vacant land.
You will also need approval for:
- an exemption certificate
- a variation to a previous approval.
You may also be required to apply for approval if you propose to acquire an interest in residential property, such as a mortgagee or leasehold interest.
Different eligibility requirements and approval conditions apply for each property type. For more information, see the Foreign InvestmentExternal Link website.
You apply and pay an application fee using Online services for foreign investors residential application.
Once approved and you have purchased the property, you must register it on the Register using Online services for foreign investors.
For more details, see Registration of residential land for foreign investors.
Business investments
You may be required to apply for approval before acquiring interests in securities or assets, or taking other actions in relation to corporations, unit trusts and businesses that have a connection to Australia.
Applications are assessed by Treasury Foreign Investment. You can find further information and apply for approval on the Foreign InvestmentExternal Link website.
You may need to register your investment on the Register using Online services for foreign investors.
For more details, see Registration of business interests for foreign investors.
Commercial land
You are generally required to apply for approval before acquiring an interest in commercial land where the value is above a certain monetary threshold.
Applications are assessed by Treasury Foreign Investment. You can find further information and apply for approval on the Foreign InvestmentExternal Link website.
However, regardless of whether foreign investment approval is required or not, you must register your investment on the Register using Online services for foreign investors.
For more details, see Registration of commercial land for foreign investors.
Agricultural land
You are generally required to apply for approval before acquiring an interest in agricultural land where the cumulative value of the land holdings is above a certain monetary threshold.
Applications are assessed by Treasury Foreign Investment. You can find further information and apply for approval on the Foreign InvestmentExternal Link website.
However, regardless of whether foreign investment approval is required or not, you must register your investment on the Register using Online services for foreign investors.
For more details, see Registration of agricultural land for foreign investors.
Mining, production and exploration tenements
You are generally required to apply for approval before acquiring an interest in a tenement or the underlying land used to carry on a mining operation.
Applications are assessed by Treasury Foreign Investment. You can find further information and apply for approval on the Foreign InvestmentExternal Link website.
You may need to register your investment on the Register using Online services for foreign investors.
For more details, see Registration of mining, production and exploration tenements for foreign investors.
How to get approval and register assets if you are a foreign person planning to invest in assets in Australia.