FIRB approval basics for foreign-owned companies

Most foreign-owned companies setting up a new Australian subsidiary for an ordinary business never need FIRB approval. FIRB becomes relevant when a foreign person acquires something: shares in an existing Australian company or business above a monetary threshold, almost any interest in residential land, vacant commercial land, mining tenements, or anything touching national security. Foreign government investors face a $0 threshold for nearly everything.

A quick note on names. The Foreign Investment Review Board is a non-statutory advisory body. Decisions are made by the Treasurer under the Foreign Acquisitions and Takeovers Act 1975, and day-to-day administration is shared between Treasury (business, agricultural and commercial land) and the ATO (residential real estate). People still say "FIRB approval", and so do we.

First question: is your company a "foreign person"?

The rules only bite if the acquirer is a foreign person. Under the Act, as explained in Treasury's Key Concepts guidance note, a corporation is a foreign person if:

• one individual not ordinarily resident in Australia, foreign company or foreign government holds a substantial interest of at least 20% (alone or with associates); or
• two or more such persons hold an aggregate substantial interest of at least 40%.

This is the point founders miss. Your Australian Pty Ltd, wholly owned by a parent in Paris or Singapore, is itself a foreign person. When it buys a business, signs up for land or takes a stake in another company, it's the foreign investor. Having an Australian-resident director on the board doesn't change that. Associates' holdings are added together, so a 15% holder and a relative with 10% can push a company over the line.

Second question: what are you acquiring, and is it over the threshold?

Thresholds are indexed every 1 January. These are the 2026 figures, which took effect on 1 January 2026 for most investments. Here is a simplified extract from Treasury's threshold table:

For all investors, national security businesses, national security land and Australian media businesses have a $0 threshold, as does starting a national security business. Foreign government investors have a $0 threshold for all investments, including starting an Australian business.

Indian investors have their own $560 million threshold for some non-sensitive service businesses and land, so check the full table if India is in the structure.

Who counts as an "FTA partner"

The table lists Chile, China, Hong Kong, Japan, New Zealand, Peru, Singapore, South Korea, the United States and the United Kingdom, plus CPTPP countries in force (Brunei, Canada, Mexico, Malaysia and Vietnam).

The gotcha: the immediate acquirer must be an entity formed in one of those countries. A US group that buys through a Dutch or Luxembourg holding company gets the thresholds of the holding company's country, not the US ones. Structure charts drawn for tax reasons can quietly drop a deal from $1,498 million to $347 million.

Four common situations, side by side

These are simplified. One detail that trips up subsidiaries: under section 12 of the Act, a lease or licence is an "interest in Australian land" if its term, including options to renew, is reasonably likely to exceed 5 years. A long office or warehouse lease can therefore be an acquisition. Ask your adviser before you sign anything that touches land.

Residential land: the strictest area

Residential land has a $0 threshold for every foreign person, and the ATO administers it. Points from Treasury's residential land guidance note:

• From 1 April 2025 to 30 June 2029, government policy is that foreign persons are generally banned from buying established dwellings, with limited exceptions such as redevelopment that significantly adds to housing stock.
• Approval to buy vacant residential land is generally conditional on finishing construction within four years and not selling before it's finished.
• Foreign owners pay an annual vacancy fee if a dwelling isn't occupied or genuinely available for rent for more than 183 days in a year.

State surcharges come on top of FIRB. Our property and real estate page covers them.

Fees for 2026–27

FIRB fees are payable when you apply, and are set out in the 2026–27 schedule of fees. Sample amounts for notifiable actions:

Established dwellings cost more, starting at $13,800 and reaching $46,800 at $1 million or less. Reviewable national security actions have their own, lower column. Treasury warns that the actual fee can differ once its calculation rules are applied to your facts, so get your adviser to confirm it before you lodge.

Timing: build the decision period into the deal

Once a decision period starts, the Treasurer usually has 30 days to decide and a further 10 days to notify you, per the Key Concepts note. The Treasurer can extend it by up to 90 days, and applicants can agree to extensions in writing. You must not complete the acquisition during that time. In practice, contracts for notifiable deals are signed conditional on FIRB approval.

The May 2026 policy statement adds a performance target of deciding low-risk applications within 30 days from 1 January 2027. To count as low risk, the applicant must meet several criteria, including an approval in the past 24 months and no record of non-compliance. Non-compliance can lead to infringement notices and civil and criminal penalties.

Where approval lands on the board's desk

Once approval is granted, conditions bind the company, and so the directors. Typical examples are tax conditions, reporting deadlines and construction milestones. A resident director should be given the approval letter and its conditions on day one, not discover them at the first audit. Separately, the company may have to notify the Register of Foreign Ownership of Australian Assets through the ATO's online services for foreign investors.

What we do and don't do

We don't give FIRB advice or prepare applications, so use a foreign investment lawyer for that. Where the company needs a resident director for an acquisition vehicle, we can be appointed while approval is pending. Our Governance Partner package then tracks FIRB conditions in the compliance calendar. To check the director side, start with the eligibility checker.

General information only, current at 27 October 2026. It is not legal or foreign investment advice. Thresholds and fees change, so check them with your FIRB adviser before you rely on them.

General information about Australian law and practice, not legal or tax advice for your circumstances. Check the official sources, or ask your adviser, before you act.