Generally, foreign persons require approval from the Foreign Investment Review Board (‘FIRB') when entering into contracts for the purchase of Australian property. The purpose of obtaining FIRB approval is to ensure that the foreign person's investment will benefit the Australian economy. However, foreign investors can now rely on a ‘New or Near-New Dwelling Exemption Certificate' (‘the Exemption Certificate') to purchase Australian property without obtaining FIRB approval.
For every new project, a property developer, or vendor, should consider whether they are able to secure the Exemption Certificate. Obtaining this certificate means that the developer's foreign buyers do not need to seek their own individual foreign investor approvals, as long as the Australian property being purchased is covered by the Exemption Certificate. The FIRB has recently published guidelines on how a developer can obtain the Exemption Certificate, and also their obligations in applying for the
