A property transaction in Australia: FIRB approval, conveyancing and stamp duty

An Australian transaction is formally transparent: the Torrens title registration system is considered one of the most reliable in the world, and an entry in the register confirms the right by itself. The difficulty for a foreigner lies not in the register but at the entrance — in obtaining approval, and in the differences between states.

Step one: approval

A foreign buyer must obtain approval from the competent authority before entering into a transaction. The application is made for a specific property or a category of properties, and a fee is paid whose size depends on value and was substantially increased for residential property. Buying without approval is a breach with consequences up to an order to sell.

• Approval is granted subject to conditions, and breaching them is a separate offence.
• A temporary ban on foreigners acquiring existing homes has applied since April 2025 for a set period.

Step two: the contract and the cooling-off period

The sale contract is made under the rules of the specific state, and the differences matter: some provide a cooling-off period during which the buyer may withdraw losing a small part of the deposit, others do not, and an auction purchase gives no cooling-off period at all. That is a fundamental detail: raising your hand at an auction already binds you.

Step three: conveyancing

Legal support of the transaction is a separate profession. The practitioner checks title, encumbrances, planning restrictions, building approvals and outstanding charges, and obtains certificates from authorities. That is not a formality: it is at this stage that use restrictions and plans affecting the property surface.

Step four: stamp duty and state taxes

• Stamp duty is paid to the state budget on a progressive scale by value.
• The foreign purchaser surcharge is added on top — its size varies by state and it is a substantial sum.
• Land tax with a foreign owner surcharge is charged annually.
• A vacancy fee applies in a number of jurisdictions if the property stands empty.

Step five: settlement and registration

Completion occurs on an agreed date with simultaneous settlement and handover of documents; registration in the Torrens system fixes the right. From that moment the buyer is the owner, and challenging the entry is possible only in very narrow cases.

What to plan for

• Calculate the full cost of entry: price plus the approval fee, stamp duty with surcharge, conveyancing, inspections.
• Check the rules of the state, not "the rules of Australia": they differ in important details.
• Plan for the approval timeline — it precedes the transaction rather than accompanying it.
• Building and pest inspections are a standard and expected part of due diligence.