FIRB Payment Methods Change as Established-Home Ban Approaches End

Foreign investors considering Australian residential property need to keep up with several important changes to the foreign investment framework, including new payment arrangements for application fees and the extension of restrictions on purchasing established homes.

From 19 September 2026, Treasury stopped accepting credit and debit card payments for foreign investment fees. Applicants and their advisers must now use BPAY, direct deposit or international bank transfer when paying the relevant fee. The payment instructions are provided with each submission, and investors should follow the reference details carefully to avoid processing delays.

The change is particularly important for overseas buyers arranging transactions from outside Australia. International bank transfers may take additional time to process, and investors should ensure that transaction costs or bank fees do not result in an underpayment. The statutory assessment period generally does not begin until the correct fee has been received.

At the same time, the Australian Government continues to tightly restrict foreign purchases of established residential property. Current policy states that foreign investors are generally prohibited from buying established dwellings from 1 April 2025 until 30 June 2029, with only limited exceptions.

The policy is designed to direct foreign investment toward increasing Australia’s housing supply rather than competing with domestic buyers for existing homes. As a result, new dwellings, off-the-plan properties and vacant residential land intended for development remain the main residential opportunities available to many foreign purchasers.

For foreign buyers interested in Melbourne’s western growth corridor, this means new estates and development areas may continue to attract more overseas attention than established suburbs. The western corridor contains substantial volumes of new housing, vacant land and house-and-land opportunities, making it more aligned with the types of investment encouraged under the current framework.

Foreign investors purchasing vacant residential land also need to understand that approval will generally include development conditions. Current Government guidance states that construction is usually required to be completed within four years, and the land generally cannot be sold until the development has been completed.

This makes planning particularly important. Buyers should consider construction costs, builder availability, planning approvals, finance and realistic completion timeframes before purchasing vacant land. Failure to comply with approval conditions can lead to significant penalties or enforcement action.

For Melbourne’s western growth corridor, the extension of the established-home restriction means foreign demand is more likely to remain concentrated in newly built properties and residential development opportunities rather than the traditional established-home market.

That could have different effects across individual suburbs. Areas with significant new construction may continue to attract overseas buyers, while established neighbourhoods may remain largely dependent on domestic purchasers, permanent residents and Australian citizens.

Investors should also be careful about relying on older information that refers to a March 2027 expiry date. Earlier guidance did refer to 31 March 2027, but the current Australian Government policy now states that the restriction will remain in place until 30 June 2029.

Overall, Australia continues to welcome foreign residential investment where it contributes to new housing supply, but the regulatory environment remains strict. For overseas buyers considering Melbourne’s western growth corridor, understanding approval requirements, payment procedures, development conditions and the limits on established homes should form an essential part of the purchasing strategy.