Foreign investors are generally required to submit a foreign investment proposal before acquiring an interest in residential land, regardless of its value.

The government’s policy is that from 1 April 2025 to 31 March 2027, foreign persons are generally banned from purchasing established dwellings, subject to limited exceptions. Further information can be found in the Residential Land Guidance Note.

Significant penalties (including infringement notices, civil and criminal penalties) may apply for breaches of the foreign investment law in relation to residential land.

If you think you may have breached the law, you are strongly encouraged to self‑disclose this to the Government. Lower penalties may apply if a breach is self‑reported.

If you have breached the law by acquiring an interest in residential land without submitting a foreign investment proposal, you may apply for retrospective approval of that acquisition.

Retrospective applications will be considered in accordance with the national interest test at the time of application. For established dwellings, this means that retrospective applications made on 1 April 2025 or later will be considered against the government’s policy regarding the purchase of established dwellings by foreign persons from 1 April 2025.

The Australian Taxation Office uses comprehensive data matching systems to identify breaches of the law in relation to residential land.

This is also supported by information and activities from other regulatory regimes and government regulators.

Detecting and remedying non‑compliance gives the Australian community assurance that the law is being upheld.

The government also has a particular compliance focus of ensuring that foreign investors comply with all conditions of approval, particularly development conditions where applicable.

You may need to comply with the reporting requirements attached to your investment and pay the vacancy fee, if required.

If you suspect that there has been a breach of the foreign investment law, you are encouraged to report this. Such reports can be made anonymously.