Publications - Property & Development
Foreign Investment Review Board: Approval for Purchasing an Interest in Land or a Business in Australia
May 2020
Snapshot
Whilst you may not consider yourself a foreign person, the Foreign Acquisitions and Takeovers Act 1975 (FIRB Act) may say otherwise.
If you are considering purchasing an interest in land or a business within Australia, you must determine whether or not Foreign Investment Review Board (FIRB) approval is required. Our previous article (which is available here) details some of the changes applicable to FIRB approvals during COVID-19.
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What should I know?
For an individual, the definition of foreign person in the FIRB Act includes individuals not ordinarily resident in Australia. This of course means that even a permanent resident can be considered a foreign person for the purposes of the FIRB Act.
To be ordinarily resident in Australia, the individual must have been in Australia for 200 or more days in the previous 12 months and not subject to any time limitation as to their presence in Australia.
How does this affect me?
If you are a permanent resident not ordinarily resident in Australia, you:
- may purchase new or existing residential property within Australia without the need for FIRB approval (in accordance with an existing exemption);
- may only purchase residential property acquired for redevelopment with FIRB approval;
- may only purchase commercial property with FIRB approval; and
- may only purchase a business with FIRB approval.
For an Australian Citizen not ordinarily resident in Australia, you:
- may purchase new or existing residential property (or residential property for development) within Australia without the need for FIRB approval (in accordance with an existing exemption);
- will be considered a foreign person when purchasing commercial property however are still exempt from the requirement for FIRB approval; and
- may only purchase a business with FIRB approval.
It is important to note that some of the provisions above are an adjustment to the normal and we would expect after COVID -19, that the requirements will revert back to the pre-COVID-19 requirements, perhaps even earlier.
Where can I find more information?
The information detailed above is general in nature. The requirements of the FIRB Act extend well beyond the purchase by an individual of property and businesses. If you are thinking about buying a property or business, please contact us for more tailored advice by clicking here or by calling one of our lawyers.
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Rebecca Young
Senior Associate Bradfield & Scott Lawyers Telephone: 9233 7299 Email: ryoung@bradscott.com.au |
