Do I need to apply for the FIRB approval?
If you are a foreign non-resident, you need to apply for foreign investment approval before purchasing a residential property in Australia.
Foreign non-residents are individuals that do not ordinarily reside in Australia (except Australian citizens), including temporary visa holders. The definition has broadened to include corporations, trustees and partners that are considered as a foreign person under Australia’s foreign investment rules.
Below is an example from the Australian Government Foreign Investment Review Board website:
'Three brothers establish a company in Australia with the intention of redeveloping property. Each brother holds an equal share of the company. One brother is an Australian citizen, one is an Australian permanent resident, and one is not ordinarily resident in Australia and is not an Australian citizen. The company is a foreign person for the purposes of Australia’s foreign investment framework because an individual who is not ordinarily resident in Australia and who is not an Australian citizen holds a substantial interest in the company (that is, an interest of at least 20 per cent). The company therefore needs to apply for and receive approval for any proposed purchase of residential land.’
For more examples and information, please visit FIRB website: http://firb.gov.au/resources/guidance/gn03/.
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