Business FIRB Approval

You’re probably aware that as a foreign investor or temporary resident, you may need to get permission from the FIRB if you’re planning to to buy your own business in Australia.

Whether you want to buy a small to medium enterprise (SME) or a large corporate, you may need to notify the Foreign Investment Review Board (FIRB) of your investment plans.

With some knowledge under your belt, you can make the process a lot smoother. In fact, you may be able to skip the business FIRB approval requirement if you can meet certain criteria.

How does business FIRB approval work?

Generally, FIRB approval is required only for significant acquisitions, typically when a foreign investor acquires a 20% or greater interest in an Australian business.

However, mandatory notification applies regardless of value if the business is a national security business (e.g., defence, telecommunications, critical infrastructure).

For most other sectors, the threshold is $332 million (indexed annually).

Who needs FIRB approval?

As a basic rule, certain non-resident investors will need to notify FIRB when buying, or acquiring an interest of 20% or more, in a business valued at over $332 million.

This requirement is only for foreign investors and temporary residents and doesn’t apply to:

• Australian citizens
• New Zealand citizens
• Australian Permanent residents (PR)
• Entities wholly owned by the above

Note: Australian citizens living overseas (expats) are exempt even if non-resident for tax purposes.

What if I want to start a business in Australia?

You do not need FIRB approval to start a new business, unless you are a foreign government investor (e.g., sovereign wealth fund or state-owned enterprise).

With the right business visa, you can launch immediately and avoid FIRB fees entirely.

We can help you secure business loans from major banks and lenders including start-up capital, invoice financing, or equipment finance.

Call us on 1300 889 743 or simply fill in this enquiry form and we can provide a free assessment of your situation and business needs.

What if I want to buy a commercial property as well?

Different thresholds apply depending on the type of land:

Learn more on our Commercial Property FIRB Approval page.

Can I avoid FIRB approval?

Yes. Free Trade Agreement (FTA) partners enjoy higher thresholds of $1,339 million for non-sensitive businesses.

Australia has FTAs with:

• United States (AUSFTA)
• New Zealand (CER)
• Japan (JAEPA)
• Korea
• Korea (KAFTA)
• China (ChAFTA)
• Singapore, Malaysia, Thailand (AANZFTA)
• Chile, Peru, Canada, Mexico, UK (CPTPP)
• Indonesia (IA-CEPA)
• Hong Kong (A-HKFTA)

Warning: These higher thresholds do not apply to:

• Foreign government investors
• Sensitive or national security businesses

What are sensitive businesses?

FIRB applies lower scrutiny thresholds to sensitive sectors, including:

• Defence and military technologies
• Encryption and security technologies
• Critical infrastructure (power, ports, data centres)
• Uranium or plutonium extraction
• Nuclear facilities

For these, the $332 million threshold applies regardless of FTA status.

Other sectors may be reviewed case-by-case. Always call FIRB before signing.

What about agribusiness?

Agricultural land: Cumulative threshold of $15 million (all holdings combined).

Do I always need to notify the FIRB?

No, but don’t risk it.

Call FIRB on 1800 050 377 or use their online pre-assessment tool before signing any contract.

Penalties for non-compliance are severe:

• Civil penalties: up to $5.43 million (individuals) or $54.3 million (corporations)
• Criminal penalties: up to 10 years imprisonment

You cannot secure business finance without FIRB clearance (or a “no objection” letter).

How do I apply with FIRB?

You can apply via the FIRB Application Portal at foreigninvestment.gov.au

The standard processing time for applications is 30 days, in addition to a 10-day statutory period. However, complex cases may require a longer processing time.

What Should Be In My Application?

An FIRB application to buy a business usually includes the following details:

• The value of the business including assets
• The amount interest you will hold in the entity as well as the total amount to invested
• Proposed location of the business including the lease agreement or details of the property to be purchased
• The ownership structure of the business including any relationship between the parties that could provide a financial benefit
• Documents relating to the contract of sale (heads of agreement), debt and equity term sheet and share agreement
• The most recent financial year’s financial statements audited by an accountant (unaudited financial statements may also be accepted)

There is more information that FIRB may ask for so check out this checklist for more information.

Can My Application Be Knocked Back?

Yes, an application may be rejected if the Treasury determines that it is not in the national interest.

Rejections have been increasing in the agricultural sector due to the $15 million cumulative land threshold and the $64 million agribusiness threshold.

Most business applications are approved, although they are often subject to certain conditions, such as tax reporting requirements or commitments to support local employment.

It is important to be transparent and to provide all requested documents promptly.

Are there application fees involved?

Yes, and they are high. Fees are tiered by investment value (2025–26 rates):

Check exact fee using the FIRB Fee Estimator.

Will FIRB consider my existing businesses?

No — for general businesses, only the current acquisition is assessed.

This means you can buy multiple businesses under $332 million without FIRB.

Exception: Agricultural land uses a cumulative $15 million threshold.

Do I need a licence to run a business?

Yes, non-residents are required to obtain a Business Innovation and Investment Visa (Subclass 188), which can lead to permanent residency through the Subclass 888 visa after four years.

Applications should be submitted to the Department of Home Affairs with a nomination from a state or territory government.

The Australian Business Licence Information Service (ABLIS) can be used to identify any industry-specific licences that may be required.

What kind of businesses are foreigners buying?

Foreign investors are purchasing a wide range of businesses in Australia.

Foreign direct investment (FDI) in businesses accounts for approximately 30% of total FDI in Australia (DFAT, 2024).

Investors are attracted to Australia’s strong economic fundamentals, including more than 30 years of uninterrupted economic growth, strategic access to markets in Asia and the Americas, and world-class banking and tax systems.

The top sectors attracting foreign investment include healthcare, technology, agribusiness, and renewable energy.

You can find more interesting information on investing in Australia on the DFAT website.

Do you need a business loan?

Did you know that foreign investors and temporary residents can get the same interest rates and borrow at the same Loan to Value Ratios (LVRs) as Australian citizens, expats, permanent residents, and New Zealand citizens?

You won’t be charged more for a business loan just because you’re a non-resident!

We offer:

• Up to 80% LVR on commercial property
• Discounted interest rates through major banks
• Flexible terms for both start-ups and business expansions

As specialist mortgage brokers with access to a wide range of lenders, we have the negotiating power to secure the best deal for your business.

So call us today on 1300 889 743 or complete our free assessment form and we can help present a strong business case with the right lender.