Updated FIRB Rules and State Surcharges for Foreign Property Buyers

Foreign property buyers need to pay close attention to recent regulatory changes, with both federal and state rules affecting how purchases are structured and funded.

From 19 September 2026, Treasury stopped accepting credit and debit card payments for foreign investment fees. Buyers and their representatives must now use alternatives such as BPAY, direct deposit or international bank transfer. Importantly, the statutory 30-day decision period does not begin until the correct fee has been paid.

Queensland has also tightened access to home-related transfer duty concessions. For transactions entered into from 1 August 2026, buyers generally need to be Australian citizens, permanent residents or specified foreign retirees to qualify. Temporary residents will usually pay standard transfer duty and, where applicable, the 8% Additional Foreign Acquirer Duty.

For foreign investors considering Melbourne’s western growth corridor, Queensland’s concession changes do not apply directly, but they reinforce how quickly state-based property rules can change.

In Victoria, foreign purchasers of residential property remain subject to an additional 8% Foreign Purchaser Additional Duty on top of ordinary land transfer duty, unless an exemption applies.

Federal approval requirements also remain important. Foreign investors generally need to submit a proposal before acquiring residential land, regardless of value, and should allow enough time for approval and fee payment before settlement.

For buyers targeting new homes, off-the-plan properties or land in Melbourne’s west, understanding these costs early is essential. FIRB fees, Victorian additional duty and other holding costs can materially affect the total investment budget.

Overall, foreign property investment now requires more careful planning around both federal approval processes and state taxes. Buyers who understand the rules before signing a contract are better placed to avoid delays, unexpected costs and compliance problems.