FIRB Approval in Australia: When a Foreign Investment Must Be Cleared First

Australia welcomes foreign investment — but some transactions must be cleared by the Treasurer before they proceed. Knowing whether the Foreign Investment Review Board (FIRB) regime applies, and acting on it early, is one of the most important steps a foreign buyer or an Australian target can take. This is a plain-English overview of how the regime works in 2026, when approval is mandatory, and what gets a deal into trouble.

What FIRB actually is

FIRB is not the law itself — it is the review body that advises the Treasurer, who makes the decisions. The framework sits across the Foreign Acquisitions and Takeovers Act 1975 (Cth), the Foreign Acquisitions and Takeovers Regulation 2015, and the Fees Imposition Act 2015, supported by published Treasury guidance. The Treasurer can approve a transaction, approve it with conditions, or refuse it — and can order divestment if a prohibited investment proceeds.

In plain terms: foreign investment is generally welcome, but certain deals have to be cleared first. Failing to notify a notifiable action is a criminal offence, and the consequences are real rather than theoretical.

The four screening questions

Whether FIRB is mandatory usually comes down to four questions. Work through them in order:

1. Is the buyer a foreign person? A foreign individual, foreign company, foreign government investor, or a trust or entity with sufficient foreign ownership or control — typically 20% or more.
2. Is there a relevant Australian connection? Australian land, shares in an Australian company, units in an Australian trust, the assets of an Australian business, or an agribusiness, media or national security business.
3. Is the ownership threshold met? A substantial interest of around 20% in most business cases; a direct interest of 10% for agribusiness and national security businesses. A lower stake can still count where practical influence or control is gained.
4. Is the monetary threshold met? Unless the category is screened at $0 — residential land, vacant commercial land, national security land or business, media businesses, and most foreign government investor cases.

When approval is usually required

These are the situations that capture the bulk of mandatory filings. None replaces deal-specific analysis, but together they cover most cases.

The 2026 monetary thresholds in brief

Two grouped labels do most of the work in the official threshold tables: the “certain FTA partners” group (which includes China, Japan, Singapore, Korea, the US, the UK, New Zealand and others) and foreign government investors. For substantial interests in non-sensitive Australian entities, the FTA group generally sits at the high A$1,498m threshold, while other private investors sit at A$347m and foreign government investors at $0.

The high thresholds usually depend on the immediate acquirer being formed in a qualifying country. Acquiring through a subsidiary in another jurisdiction can default the deal to that subsidiary’s threshold — a structuring point that catches buyers out.

Vacant, developed and sensitive commercial land

Commercial land splits into vacant and developed, and developed land splits again into ordinary and sensitive. Each carries a different threshold. Land is “vacant” if there is no substantive permanent building that can be lawfully occupied; developed land is everything else — offices, warehouses, shopping centres, multistorey car parks. Sensitive developed land includes land leased to government, public infrastructure such as airports and ports, data-storage facilities, telecoms sites and mining operations.

Fees, timing and the decision clock

Three practical points dominate the process: how much, how long, and what stops the clock. Business, entity and commercial land applications start at A$15,100 for lower-value transactions and rise in tiers; starting an Australian business is a flat A$4,500; residential and agricultural land have their own fee scales.

The statutory clock is essentially a 30-day decision period, with a further 10 days to notify the applicant — but it does not start until the correct fee is paid. The Treasurer can extend the period by up to 90 days, and information requests during review pause progress. Budget at least 30 to 60 days, and longer where national security is in play.

Compliance is now a continuing obligation

The Government has signalled a tougher stance. Active auditing, cross-agency information sharing and civil penalties are now standard, and certain completed transactions — even non-notifiable ones — must be reported on the Register of Foreign Ownership of Australian Assets. FIRB compliance is best treated as a continuing post-completion responsibility, not a one-off pre-completion check.

Practical takeaways for foreign buyers

• Check land deals before signing — residential, vacant commercial, national security land, or agricultural land over the cumulative threshold.
• Watch the 10–20% line on business deals — especially in agribusiness, media, telecoms, transport, defence, critical data or any national security-adjacent sector.
• Assume FIRB applies to foreign government investors — most thresholds collapse to $0.
• File early and plan for timing — the clock only starts once the fee is paid and the submission is complete.

Frequently asked questions

Does FIRB approval depend on the size of the deal?

Not always. Several categories — residential land, vacant commercial land, national security land and business, media businesses and most foreign government investor cases — are screened at $0, so the deal value is irrelevant. The monetary threshold only matters once the category question is settled.

When should a foreign buyer file?

Where approval is mandatory, file before signing a final contract and certainly before completion. Acting on the deal before approval can invalidate it and expose the parties to penalties.

How long does FIRB approval take?

The statutory period is about 30 days plus 10 days to notify, but it only begins once the correct fee is paid and the submission is complete. The Treasurer can extend it by up to 90 days, and sensitive cases are expected to take longer.