Foreign Buyer Ban on Established Homes: Extended to 2029

In this blog/video we discuss the brand new law that has BANNED FOREIGNERS from buying exisiting property in Australia for two years, starting 01/04/2025.

We also explain some of the barriers to entry for foreigner buyers, such as AFAD, FIRB and annual vacancy fees, as well as provide a working example of what the fees would cost for a $1m purchase for a foreign person.

Prefer to watch/listen? Click here to consume this content via YouTube!

Hi everybody – George Sourris, Empire Legal.

Today’s topic: Foreigners banned from buying existing homes in Australia for two years! 

On the 16th of February 2025, Labor’s Treasurer Jim Chalmers announced a two year ban on the purchase of existing Australian homes by foreign investors, mirroring the Liberal policy.

A “foreigner”, for the purposes of this video, is anyone that is not an Australian Citizen or Permanent Resident.

From the 1st of April 2025, foreign investors, including temporary residents and foreign owned companies will no longer be able to purchase an established dwelling in Australia while the ban is in place, unless an exemption applies. After the two year initial period, a review will occur to see if the ban will end or be extended.

Foreigners will be able to purchase new dwellings to encourage a supply of housing. However, for new developments of 50 units or more, foreign investors are restricted to owning no more than 50 percent of the property, ensuring local buyers and investors maintain a significant stake in the development.

Keep in mind, foreigners are subject to AFAD, Additional Foreign Acquirer Duty, at 8% of the purchase price. For example, in Queensland, let’s just say you’re buying a property for a million dollars. That’s an additional $80,000 on top of the stamp duty of $30,850.

Foreigners also need FIRB, or Foreign Investor Review Board approval in order to purchase. In our $1 million purchase example, a new dwelling would attract a $14,700 FIRB fee. And again, that’s just for application. There’s no guarantee of approval or success. Here is the link in the blog to the FIRB fee schedule, guys.

Saxon Davidson, Research Fellow of the Institute of Public Affairs, said that the latest ABS data confirms over 1,000 new immigrants arrive in Australia every day under the Albanese Government.  The number of new houses approved remains far below the number of new arrivals, meaning, the great Australian dream of owning a home is being denied to the next generation of Australians and new migrants alike. Foreign buyers spent $4.9 billion Australian dollars purchasing 5,360 pieces of residential land in 2022/23 financial year, accounting for less than 1% of all sales.

Of that 5,360 sales, approximately 1,800 properties were existing.

Claire O’Neill, Minister for Housing and Homelessness, said the policy was not a “silver bullet” to fix the Australian housing crisis, but would make thousands more homes available to local buyers.

Foreign owners of property that remain vacant for six months or more in a year are subject to an annual vacancy fee. This is to discourage “land banking”, where foreign investors hold on to properties without using or developing the properties, driving up housing prices and limiting availability for local buyers. For vacancy years starting 9th of April 2024, the fee has doubled for foreigners, to a whopping $26,400 per annum.

As you can see, there are many expensive barriers for foreign purchasers. This new two year ban for foreigners buying established dwellings will allow Australians a fair go to unlock at least a couple thousand extra properties per year to purchase without needing to compete with cashed up foreigners.

Whilst some are bagging this policy, saying it’s a political stunt or a gimmick, this solicitor personally thinks that it’s a good thing for Australians. I agree with our Minister for Housing, that it is not a silver bullet, but it will definitely help move the needle in the right direction for Aussies wanting to buy homes.

Guys, that’s it for this week. Thank you so much. As you know, our goal is 1,000. This is free content. Please share it with people. Subscribe. Helps us find more people to help. Obviously, Empire Legal, Conveyancing, Queensland wide.

It’s all we do. We want to help you. If you’ve been listening to us for a while, but you haven’t made contact, please do! We want to help people buy and sell homes and deliver QLD’s best experience. Thanks guys, we’ll see you next week.

Subscribe to our YouTube and our blog. We’re only going to do that with your help. We’re giving out this content for FREE to help you and your peers. Spread the good word of Empire Legal. We want to help everyone make property law in Queensland easy and smooth sailing.

If you have any questions, you can email me: george@empirelegal.com.au.

If this has added value, please share this blog / the YouTube video with a friend.

Thanks for reading everybody. See you on the next one.

Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Brisbane, Queensland, Australia.

We can help…

For simple, sunny, smooth sailing conveyancing – Empire Legal.

We look forward to continuing to help thousands of Queenslanders every year with their conveyancing!

Any questions? Want to know more? Get in contact with us via the below form or via info@empirelegal.com.au.

Are foreigners banned from buying property in Australia?

Foreign persons are banned from buying established dwellings, subject to limited exceptions. They are not banned from Australian property altogether. New dwellings and, in the right circumstances, vacant land for development remain open.

The ban applies to foreign persons, including temporary residents and foreign owned companies.

How long does the foreign buyer ban last?

It started on 1 April 2025. It was originally announced as a two year measure, which is why most of the coverage still refers to a ban ending in 2027.

That is out of date. The ban has been extended and now runs until 30 June 2029. If you are reading an article that says the ban expires in March 2027, it was written before the extension.

Who is exempt from the foreign buyer ban?

• Permanent residents
• New Zealand citizens
• Limited exceptions for investments that significantly increase housing supply or support the availability of housing supply

Note what is not on that list: temporary residents. A person here on a temporary visa who could previously buy one established home to live in is caught by the ban.

Can a foreign person still buy a new property or vacant land?

Generally yes, with FIRB approval, because those categories add to housing supply rather than competing for existing stock. Vacant land approvals typically come with a development condition requiring construction within a set period, and that condition is enforced.

Land banking is precisely what the current rules are aimed at, so buying vacant land with no genuine intention to build is a compliance problem, not a strategy.

What does this mean if you are already a foreign owner in Queensland?

The ban is about acquisitions. It does not force you to sell what you already own. Your existing obligations continue and they are the ones that cost money:

• The annual vacancy fee return, where the property must be occupied or genuinely available for rent for 183 days a year
• AFAD, the Queensland additional foreign acquirer duty, on any acquisition that does proceed
• Foreign resident capital gains withholding when you sell

What happens if you buy in breach of the rules?

The consequences are serious and include forced disposal of the property, civil penalties and, in some cases, criminal penalties. The ATO administers residential compliance and it does act.

This is not an area to work out afterwards. If there is any question about whether a buyer is a foreign person, including trusts and companies with foreign interests, get it resolved before a contract is signed rather than before settlement.

Current at 8 August 2026. Foreign investment rules change frequently and this article is general information only.