FIRB Exemptions: Can You Get It?
FIRB approval is not required if you are an Australian or you fall under any of the following categories:- You are a permanent resident of Australia
- You are a New Zealander purchasing a residential property
- You are purchasing property with your spouse, as joint tenants, and your spouse is a citizen of Australia or New Zealand or an Australian permanent resident.
- You are purchasing a new property from a developer who holds a new dwelling exemption certificate.
- You are purchasing a residential property that is in a designated ITR.
FIRB Exemption For Integrated Tourism Resorts
Foreign investors who want to purchase vacant residential land, a residential dwelling, or an established dwelling within a resort that was designated an Integrated Tourism Resort (ITR) before September 1999 do not need to apply for FIRB approval. An ITR usually consists of a mix of accommodation, recreation and commercial facilities that have been planned and constructed by a single developer on a single or adjoining site within a well-defined area. These exemptions apply only to residential land located within the originally designated boundaries of an ITR. Foreigners are still subject to the additional foreign acquirer duty, which is a surcharge on top of any transfer duty. The following resorts were designated ITRs before September 1999:- Hamilton Island Resort, Whitsunday Passage, Queensland
- Hope Island Resort, Hope Island, Queensland
- Hyatt Regency Resort, Coolum, Queensland
- Kooralbyn Valley Resort, Queensland
- Laguna Quays Resort – Stage 1, Repulse Bay, Queensland
- Mirage Port Douglas Resort, Port Douglas, Queensland
- Palm Cove Travelodge Resort, Queensland
- Royal Pines Resort, Ashmore, Queensland
- Sanctuary Cove, Hope Island, Queensland
- Joondalup Resort, Western Australia
- Wirrina Cove Resort, South Australia
- Subject to a lease of a minimum of 10 years to the resort operator
- Available as tourist accommodation when the owner is not living in it
- Acquired in a manner following the conditions imposed on the ITR at that time
The following resorts were designated ITRs on or after September 1999:
- Heritage Golf and Country Club, Chirnside Park, Victoria
- Hunter Valley Golf and Country Club Resort, New South Wales
- Kingfisher Bay Resort Village, Fraser Island, Queensland
In 2015, the act was amended and no longer includes a means to approve new integrated developments as ITRs. Current ITRs will be considered to prevent negative effects on existing foreign investors.
Source:FIRB Guidance Note 06 – Residential Land
FIRB Exemption Certificates Through Property Developers
Foreign investors are also not required to go through the FIRB process if the developer of their property has obtained an exemption certificate. There of two types of exemption certificates that developers can apply for:- New Dwelling Exemption Certificate
- Near-New Dwelling Exemption Certificate
Type Of Exemption Certificate | Fee Treatment |
---|---|
Residential land (established dwellings) Residential land (other than an established dwelling) | Ordinary fee for acquiring an interest in residential land |
Residential land (new dwellings) Residential land (near-new dwellings) | Application fee of $56,600 plus reconciliation fee every six months, which is based on the number of dwellings acquired by foreign people |
Before proceeding with any contract, you should seek legal advice specific to your circumstances to ensure you do not fall foul of legislation. Failure to do so may result in huge penalties. Speak to your conveyancer, as each situation can be unique and conditions may be attached.