Before you buy residential property
If you are a foreign person, you must apply for approval from us, the Australian Taxation Office, before buying a residential property in Australia. In some cases, you may apply for an exemption certificate instead. More information is available at the Treasury websiteExternal Link.
Before you enter any contract to buy residential property you need us to grant you approval or an exemption certificate.
There are penalties if you buy Australian property without first obtaining approval or an exemption certificate. See How we ensure compliance by foreign persons.
Applying for approval or an exemption certificate
You must apply using Online services for foreign investorsExternal Link for:
- a new application for approval to buy Australian residential property
- an application for an exemption certificate
- a variation to an existing application for approval or exemption certificate.
For more information about
- the fee you pay when you submit your application for approval, see Residential fees for a foreign person
- the timeframe of 30 days to consider an application, after the correct feeExternal Link is paid
- how to apply using Online services for foreign investors, see How to apply or vary an approval to buy residential property.
If you intend to buy a new dwelling from a developer
If you plan to buy a new dwelling from a property developer, ask the developer if they already have an exemption certificate for the dwelling. If they do, you do not need to apply for approval.
See New or near-new dwelling exemption certificates for property developers.
When can you apply for an exemption certificate
You can apply for an exemption certificate if you intend to purchase only one property. It can be a new or near-new dwelling, or a single block of vacant land for development.
You pay a fee when you apply for an exemption certificate. It is paid at the time of applying.
Temporary residents can also use an exemption certificate to purchase an established dwelling to live in while residing in Australia.
The exemption certificate allows you to make multiple attempts or bids to purchase one property:
- in a nominated state or territory
- without the requirement to seek approvals for each property you are interested in.
You can apply for an exemption certificate even if you have already signed a contract, provided the contract is still conditional.
Your exemption certificate will:
- be valid for 12 months from the date of approval
- specify a limit on the property value you can bid or attempt to buy
- specify the Australian state or territory in which you can buy
- specify the type of property you can buy
If you decide to bid or negotiate for a property of greater value, you will need to obtain a new exemption certificate for the greater value property.
The conditions for obtaining an exemption certificate and approval to buy a specific property are the same.
For more information on key concepts and residential land, see Register of foreign ownership of Australian assetsExternal Link.
Conditions for obtaining approval
We consider all applications including variations on a case-by-case basis. Each type of property (or dwelling) may have special and different conditions.
If your application is approved, we send you a 'no objection notification'. This notification will grant you (the foreign person) permission to purchase an Australian property.
Applications to buy established dwellings
Application to buy a dwelling for your principal residence
We generally approve an application for temporary residents to purchase an established dwelling to use as your principal place of residence if:
- the property is vacant at settlement
- you use the property as your principal place of residence whilst in Australia
- you do not rent out any part of the property
- you do not demolish the dwelling and replace it with a new dwelling.
If the property is to undergo renovations, those renovations must not be so substantial that you cannot continue to reside in the property while the renovations are undertaken. For example, if you demolish the dwelling on the property this would generally breach the condition. As your principal residence, you are required to live in the property.
Note: You must dispose of the property within 6 months when:
- the property is no longer your principal place of residence in Australia
- you are no longer a temporary resident.
Application to buy property for redevelopment
We generally approve applications to buy and redevelop an established dwelling if it genuinely increases Australia’s housing stock. This includes proposals to:
- retain an established dwelling
- demolish an established dwelling
- build multiple dwellings on vacant land.
Application for an established dwelling for redevelopment
If you buy an established dwelling for redevelopment, you must retain the established dwelling and build one or more new dwellings (of a comparable size on the land alongside the established dwelling). We will generally approve these applications if:
- the property is vacant at settlement.
- at least one dwelling, of a comparable size to the existing dwelling, is being built on the land.
- no part of the existing dwelling is occupied from the date of settlement until construction of the additional dwellings is complete.
- construction of all dwellings is completed within 4 years from the date of approval.
- you submit evidence of completion of construction to us within 30 days of receiving it (that is, a certificate of fitness for occupancy or use, final occupancy, or builder’s completion certificate).
- you do not sell, transfer or otherwise dispose of your interest in the property before construction is complete.
- once construction of the new dwellings is complete, you rent or sell at least one of the dwellings to an independent third party.
Application to demolish a dwelling for redevelopment
We will generally approve proposals to demolish an established dwelling and build multiple new dwellings its place if:
- the property is vacant at settlement, and no part of the existing dwelling is occupied from the date of settlement to the commencement of demolition.
- the demolished dwelling is replaced with multiple dwellings, each of a comparable size and value to each other.
- you submit evidence of completion of construction to us within 30 days of receiving it (that is, a certificate of fitness for occupancy or use, final occupancy, or builder’s completion certificate).
- you do not sell, transfer or otherwise dispose of your interest in the property before construction is complete.
Application to build multiple dwellings on vacant land
We will generally approve an application to purchase an established dwelling for redevelopment if:
- the land that is currently vacant but previously had a dwelling on it
- you build multiple dwellings, each of a comparable size and value to each other on the land
- construction of all dwellings is complete within 4 years from the date of approval
- you submit the evidence of completion of construction to us within 30 days of receiving it (that is, a certificate of fitness for occupancy or use, final occupancy, or builder’s completion certificate)
- you do not sell, transfer or otherwise dispose of your interest in the property before construction is complete.
Application to buy new dwellings
We will generally approve an application to buy a new dwelling as long as it is not a single dwelling that was built to replace one or more demolished dwellings.
Where an established dwelling is demolished and replaced with one new dwelling, the replacement dwelling is treated as an established dwelling for the purpose of a foreign person seeking approval to buy.
An application (for an exemption certificate) to buy a new dwelling is normally used by foreign persons seeking to buy from a developer who has not provided approval to the foreign person under an existing new dwelling exemption certificate.
A new residential dwelling is a dwelling that:
- will be, is being, or has been, built on residential land
- has not been previously sold as a dwelling
- has not been previously occupied or was not occupied for more than 12 months if it was sold in a development.
Application to buy vacant land
Vacant residential land in Australia is considered vacant if:
- it is land on which the number of dwellings that could reasonably be built is less than 10
- the land is not being used wholly and exclusively for a primary production business.
Land that previously had an established dwelling on it is generally not considered to be vacant land.
We will generally approve an application to purchase vacant land if:
- You build at least one residential dwelling on the land.
- You do not sell, transfer or otherwise dispose of your interest in the land before construction of the dwelling is completed.
- Construction of all dwellings is completed within 4 years from the date of approval.
- You submit evidence of completion of construction to us within 30 days of receiving it (that is, a certificate of fitness for occupancy or use, final occupancy, or builder’s completion certificate).
Varying your existing approval
If we granted you approval for your proposal but you wish to make a correction or change the conditions of your approval, you must apply for a variation. You do this using Online services for foreign investors. There is a fee for submitting a variation of approval.
If you need to make substantial changes to the original approval, you will need to submit a new residential application, not a variation.
There are 2 types of variations, simple and complex. You should use a:
- simple variation for correction of a spelling error or errors to the name of the purchaser or property being purchased
- complex variation to
- change or remove a condition, unless it is a substantial change
- extend the validity period of a no-objection notification
- add a new wholly-owned subsidiary as an applicant.
For example, you may want to vary a residential application or exemption certificate when you have received approval for vacant land to develop and:
- you need more time to construct or want to sell without developing
- you need to apply for a complex variation to the conditions of your approval.
Mortgagee interest and applications
A mortgagee interest is when a foreign person lends money to another person to purchase a property and repayment of the loan is secured by granting an interest in the land.
The mortgagee (lender) must lodge a residential application if a security interest is held over Australian residential land before they enter the lending arrangement.