FIRB Fees Tripled in 2024: Complete Guide to the New Application Costs for Foreign Property Buyers

Last Updated: November 2025

If you're a foreign investor looking to buy Australian property, brace yourself: FIRB application fees have skyrocketed. What used to cost $14,100 now costs $42,300 for properties under $1 million—a 200% increase that took effect on April 9, 2024.

This isn't just a price hike. It's a fundamental reshaping of Australia's foreign investment landscape, and it affects every temporary resident, foreign investor, and offshore buyer planning to purchase residential property Down Under.

What Changed on April 9, 2024?

On April 8, 2024, the Foreign Acquisitions and Takeovers Fees Imposition Amendment Act 2024 received Royal Assent. The amendments, which commenced the very next day, introduced three major changes:

1. Triple FIRB application fees for established dwelling purchases
2. Double vacancy fees for all foreign-owned residential dwellings
3. Reduced fees for Build-to-Rent (BTR) projects

The Australian Government positioned these changes as part of its "broad and ambitious agenda to improve housing affordability and supply." The intent? Push foreign capital away from existing homes and toward new construction that increases Australia's housing stock.

The New Fee Structure: What You'll Actually Pay

Established Dwellings (Tripled Fees)

Here's what FIRB approval now costs for established residential properties:

Property Value	OLD Fee (Pre-April 2024)	NEW Fee (Post-April 2024)	Increase
Up to $1 million	$14,100	$42,300	+$28,200
$1M - $1.999M	$28,200	$84,600	+$56,400
$2M - $2.999M	$56,400	$169,200	+$112,800
$3M - $3.999M	$84,600	$253,800	+$169,200
$4M - $4.999M	$112,800	$338,400	+$225,600
$5M - $5.999M	$141,000	$423,000	+$282,000
$10M - $10.999M	$282,000	$846,000	+$564,000
$20M - $24.999M	$565,500	$1,696,500	+$1,131,000
$40M+	$1,119,100	$3,357,300	+$2,238,200

Source: Foreign Investment Review Board Guidance Note 10

Following the July 2024 indexation, these fees increased further. As of the 2024-25 financial year, the maximum fee for established dwellings over $40 million is $3,514,800.

New Dwellings and Vacant Land (Unchanged)

Good news: If you're buying a new dwelling or vacant residential land, the fees remain at their pre-April 2024 levels:

Property Value	Application Fee
Up to $1 million	$14,100
$1M - $1.999M	$28,200
$2M - $2.999M	$56,400
$3M - $3.999M	$84,600
$4M - $4.999M	$112,800
$5M - $5.999M	$141,000
$10M - $10.999M	$282,000
$20M - $24.999M	$565,500
$40M+	$1,119,100+

This fee structure is designed to incentivize foreign investment in new construction rather than competing with Australians for existing homes.

The Vacancy Fee Bombshell: A 600% Total Increase

The vacancy fee changes are where things get truly expensive.

How Vacancy Fees Work

If you own a residential property purchased after May 9, 2017, you must pay an annual vacancy fee if your property is:

• Not residentially occupied, OR
• Not genuinely available for rent (minimum 30-day terms)

...for 183 days or more (approximately 6 months) in a 12-month period.

The New Vacancy Fee Structure

Previously, the vacancy fee equaled your original FIRB application fee. Now, it's double that amount.

For established dwellings purchased after April 9, 2024:

Property Value	OLD Vacancy Fee	NEW Vacancy Fee	Total Increase
Up to $1 million	$14,100/year	$84,600/year	600%
$1M - $1.999M	$28,200/year	$169,200/year	600%
$2M - $2.999M	$56,400/year	$338,400/year	600%
$5M - $5.999M	$141,000/year	$846,000/year	600%
$40M+	$1,119,100/year	$6,714,600/year	600%

Following the July 2024 indexation, the maximum annual vacancy fee for established dwellings is now $7,029,600 per year.

Real-World Impact

Let's say you're a temporary resident who bought an established $800,000 apartment in Melbourne in May 2024. You return to your home country for 7 months while keeping the property.

Your bill:

• FIRB application fee: $42,300 (one-time)
• Annual vacancy fee: $84,600 (every year it's vacant)
• Total first-year cost: $126,900

And that's before stamp duty, land tax surcharges, or any other property costs.

Who Does This Affect?

Definitely Affected:

• Foreign non-residents purchasing any residential property
• Temporary residents (457, 482, student visas, partner visas) buying established dwellings
• Property developers acquiring established dwellings for redevelopment (yes, even if you're planning to knock it down and build new homes)
• Foreign companies housing Australian-based staff in established dwellings

Exemptions:

• Australian citizens and permanent residents (no FIRB approval needed)
• New Zealand citizens with Special Category Visa (Subclass 444)
• Temporary residents buying with an Australian citizen spouse as joint tenants (not tenants in common)
• New dwellings and vacant land purchases (lower fees apply)
• Build-to-Rent projects (see below)

The Build-to-Rent Exception: A Silver Lining

While established dwelling fees tripled, the government simultaneously slashed fees for Build-to-Rent (BTR) projects to encourage institutional investment in rental housing.

BTR projects now pay commercial land rates:

Investment Value	BTR Fee (Commercial Rate)	Old Residential Rate
Up to $50 million	$14,100	$253,800+
Over $50 million	Progressively higher, but still significantly lower	Up to $3.5M+

To qualify for BTR treatment, projects must be "specifically designed, built and managed to provide long-term rental options for Australians." State governments have provided additional guidance, with common features including:

• Purpose-built rental accommodation
• Minimum project size thresholds
• Long-term rental management commitments
• Professional property management

This change took effect from December 14, 2023.

Strategic Implications: What This Means for Your Investment

1. The Economics Have Fundamentally Changed

A $1 million established property investment now requires:

• $42,300 upfront FIRB fee (up from $14,100)
• Potential $84,600/year if vacant for 6+ months
• State stamp duty surcharges (7-8% in most states)
• Annual land tax surcharges

The fee increases alone can add $50,000-$100,000+ to your transaction costs.

2. New Construction Is Now Heavily Favored

The government's message is crystal clear: build new, don't buy existing.

For a $1 million purchase:

• Established dwelling: $42,300 FIRB fee
• New dwelling: $14,100 FIRB fee
• Savings: $28,200

3. Vacancy Is Now Prohibitively Expensive

Leaving a property vacant is no longer just wasteful—it's financially devastating. At $84,600/year for a $1 million property, you're essentially paying 8.46% of the property value annually in vacancy fees alone.

Solution: Ensure your property is either:

• Genuinely occupied as your residence, OR
• Listed for rent with genuine availability (minimum 30-day terms) for at least 183 days per year

4. Redevelopment Projects Face Uncertainty

The legislation's language creates uncertainty for property developers. If you're buying an established dwelling to knock it down and build multiple new homes (thereby increasing housing stock), do you still pay the tripled fees?

The government's stated intent is to encourage new housing supply, yet the plain reading of the Act suggests developers acquiring established dwellings for redevelopment pay the higher fees. Industry bodies have raised concerns about this "unintended chilling effect on large subdivision development."

If you're a developer: Seek professional advice before proceeding. The regulatory interpretation remains somewhat unclear, and the wrong assumption could cost hundreds of thousands in unexpected fees.

Compliance and Penalties: The Enforcement Ramp-Up

The fee increases came with an ominous announcement: the Australian Taxation Office (ATO) is "enhancing compliance regime to ensure foreign investors comply with the rules."

What This Means:

Increased audit activity: The ATO has dedicated more resources to monitoring FIRB compliance, including site visits.

More infringement notices: According to official ATO data, penalties range from $2,040 to $51,000 depending on the violation and whether you self-disclose.

Civil and criminal penalties: Non-compliance can result in:

• Fines up to $3.3 million (individuals) or $33 million (corporations)
• Criminal penalties including up to 10 years imprisonment
• Forced divestment (you must sell the property)
• Loss of capital gains

Recent prosecutions: In 2021, the Federal Court issued its first penalty order under the foreign investment rules—$250,000 for purchasing multiple properties without FIRB approval. Between 2015 and 2021, 434 properties were disposed of as a result of ATO compliance action.

The Takeaway:

Getting FIRB approval isn't optional, and the ATO is watching more closely than ever.

How to Calculate Your Total FIRB Costs

Use our FIRB Calculator to get an instant, accurate breakdown of your total costs, including:

• FIRB application fees (at current indexed rates)
• State-specific stamp duty and surcharges
• Potential vacancy fees
• Land tax surcharges
• Complete 10-year cost projection

Example calculation for a $750,000 established dwelling in NSW (2024-25):

Cost Item	Amount
Purchase price	$750,000
FIRB application fee	$42,300
NSW stamp duty (standard)	$26,685
Foreign buyer surcharge (8%)	$60,000
Annual land tax surcharge (2%)	$15,000/year
Potential vacancy fee (if applicable)	$84,600/year
Total upfront costs	$128,985
Annual holding costs (if vacant)	$99,600

Looking Ahead: What's Next for Foreign Investment in Australian Property?

The April 2025 Established Dwelling Ban

On May 1, 2024, the government announced a temporary two-year ban on foreign purchases of established dwellings from April 1, 2025, to March 31, 2027. This ban has limited exceptions for:

• Temporary residents buying a principal residence
• Redevelopment projects increasing housing stock by 20+ dwellings
• Build-to-Rent projects
• Commercial-scale housing developments

This suggests the fee increases were just the beginning of more restrictive policies.

Continued Indexation

FIRB fees are indexed annually on July 1. Even without further legislative changes, expect fees to continue rising with inflation.

Political Scrutiny

With bipartisan support for the 2024 changes and housing affordability remaining a top political issue, further restrictions on foreign investment in residential property seem likely rather than unlikely.

Practical Action Steps for Foreign Investors

Before You Buy:

1. Determine your exact status: Are you a foreign non-resident, temporary resident, or do you qualify for an exemption?
2. Calculate total costs accurately: Use the PropertyCosts.com.au calculator to get a complete picture including FIRB fees, stamp duty surcharges, and ongoing holding costs.
3. Consider new construction: If buying established property no longer makes financial sense, explore off-the-plan developments, house-and-land packages, or vacant land options.
4. Apply for FIRB approval EARLY: Processing takes 30 days minimum (often longer). Make your contract conditional on FIRB approval if you haven't secured it yet.
5. Budget for vacancy fees: If you won't occupy the property or rent it out for 183+ days per year, factor in annual vacancy fees that can exceed $80,000.

After Purchase:

6. Keep meticulous occupancy records: Document when the property is occupied or genuinely available for rent to defend against potential vacancy fee assessments.
7. Lodge vacancy fee returns on time: Even if your property was occupied all year, you must still lodge a return within 30 days of your vacancy year anniversary.
8. Register on the Register of Foreign Ownership: You must register your purchase within 30 days. Failure to do so can result in penalties.
9. Understand your exit obligations: Temporary residents must sell established dwellings within 3 months of leaving Australia. Factor this into your investment timeline.

Frequently Asked Questions

Q: I'm on a 482 visa. Do I pay the tripled fees?

A: It depends. If you're buying an established dwelling, yes—you'll pay the $42,300+ FIRB fee. If you're buying a new dwelling or vacant land, you pay the standard $14,100+ fee. If you're buying with your Australian citizen spouse as joint tenants, you may be exempt entirely.

Q: Do the tripled fees apply to applications submitted before April 9, 2024?

A: No. If you submitted your FIRB application before April 9, 2024, the old fees apply, even if settlement occurs after that date.

Q: I'm buying an established house to knock it down and build townhouses. Do I pay the tripled fee?

A: This is currently unclear. The legislation appears to apply the tripled fee to all established dwelling acquisitions, even for redevelopment purposes. However, this may be contrary to the government's stated intent. Seek professional legal advice before proceeding.

Q: Can I avoid the vacancy fee by listing my property on Airbnb?

A: Potentially, but be careful. The property must be "genuinely available for rent" for a term of at least 30 days. Short-term holiday lettings may not qualify unless properly structured. Keep detailed records.

Q: Are the fees tax-deductible?

A: FIRB application fees are generally not tax-deductible, as they're capital costs associated with acquiring the property. However, vacancy fees may be deductible as holding costs in some circumstances. Consult a qualified tax advisor for your specific situation.

Q: What if I became a permanent resident after buying?

A: If you were a foreign person when you purchased the property with FIRB approval after May 9, 2017, you're still subject to vacancy fee obligations even if you later become a permanent resident. However, your PR status may affect future purchases.

Q: Can I get a refund if my FIRB application is rejected?

A: No. FIRB fees are non-refundable, even if your application is denied or you decide not to proceed with the purchase.

The Bottom Line

The tripling of FIRB fees represents the most significant change to Australia's foreign investment framework in a decade. For many foreign buyers, these increases—combined with stamp duty surcharges, land tax surcharges, and potential vacancy fees—have fundamentally altered the economics of Australian property investment.

Key takeaways:

1. Established dwellings now cost 3x more to acquire ($42,300+ vs. $14,100)
2. Vacancy fees have increased 600% for new purchases
3. New construction remains comparatively affordable
4. Build-to-Rent projects enjoy reduced fees
5. Compliance enforcement is increasing
6. Further restrictions are likely coming in 2025-2027

Before committing to any Australian property purchase, get a complete cost breakdown using our comprehensive calculator. Understanding your true total investment—including all fees, surcharges, and potential ongoing costs—is more critical than ever.

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Additional Resources

• Foreign Investment Review Board Official Website
• ATO Foreign Investment Guidance
• Foreign Acquisitions and Takeovers Fees Imposition Amendment Act 2024
• FIRB Guidance Note 10: Fees (Current Version)
• FIRB Guidance Note 6: Residential Land
• Calculate Your Complete Property Costs

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Disclaimer: This article provides general information only and should not be relied upon as legal, tax, or financial advice. FIRB fees and regulations change regularly. Always verify current fees and seek professional advice specific to your circumstances before making any investment decisions.

Last updated: November 28, 2025. FIRB fees are subject to annual indexation on July 1.