Introduction
On 2 May 2015, the Australian government announced a series of
changes to the foreign investment framework (see our
Foreign Investment Update), including changes to the approval
regime for off-the-plan developments and the introduction of
significant application fees for advanced off-the-plan certificates
from 1 December 2015.
Australian and overseas developers should consider whether they
can take advantage of the present regime by applying for FIRB
approval before the changes come into force.
Application fees applicable from 1 December 2015
Currently, property developers can apply for an advanced
off-the-plan certificate (AOP Certificate) to sell new apartments
in large developments (of 100 lots or more) to foreign investors,
saving the foreign investor from having to obtain an individual
approval. AOP Certificates are granted on condition that the
developer must market the lots in the development both in Australia
and overseas.
