FIRB Approval Melbourne Property Rules and Timeline 2026

Picture this: you’re weaving through an open for inspection in Box Hill, the agent is talking about ‘strong interest’, and you’re already thinking about the deposit and the settlement date. Then someone mentions ‘FIRB’ and the room goes quiet.

FIRB stands for the Foreign Investment Review Board, but in everyday property life the application is handled through the federal foreign investment system. If you’re classed as a ‘foreign person’, you often need approval before you buy residential property in Australia. In 2026, the rules matter even more because there’s a temporary ban on foreign people buying established homes, with only narrow exceptions.

This guide is general information for Melbourne buyers and investors. It’s not personal legal advice. If you’re unsure where you fit, it’s worth getting tailored advice before you sign.

Why FIRB approval matters in a Victorian purchase

In Victoria, contracts move fast. A private sale might give you a small window to review the paperwork and negotiate conditions. An auction is different: when the hammer falls, you’re usually committed on the spot.

FIRB approval is one of those things that can’t be bolted on at the end. It affects:

• what you’re allowed to buy

• whether you can safely sign a contract

• how long you need between signing and settlement

• what you must do after the purchase (reporting, build conditions, and sometimes vacancy rules)

If you get it wrong, the consequences can be serious, including large civil penalties and an order to dispose of the property. It’s not a box ticking exercise.

Who is a ‘foreign person’?

People often assume ‘foreign buyer’ means ‘someone living overseas’. The definition is wider than that. It can include:

• individuals who are not Australian citizens

• people who are not permanent residents

• some temporary visa holders living in Melbourne

• companies or trusts with foreign ownership or control

New Zealand citizens are treated differently in several situations, so don’t lump every passport into the same basket. If you’re buying through a company, a family trust, or with a partner whose status is different to yours, the classification can become technical quickly.

The headline rule for 2026: established homes are generally off limits

From 1 April 2025 to 31 March 2027, foreign persons are generally banned from buying established dwellings in Australia unless a limited exception applies.

An ‘established dwelling’ is an existing home that has been previously occupied. Think a lived in apartment in Carlton, a family home in Glen Waverley, or a terrace in Fitzroy. If it’s not brand new, assume it falls into this category until proven otherwise.

That one rule changes the entire buying plan. Many foreign buyers who would once have looked at established stock are now limited to new builds or vacant land.

What you can buy as a foreign person in Melbourne

Most approvals in 2026 sit in three practical categories.

New dwellings and off the plan contracts

New dwellings are generally the simplest pathway. These include:

• brand new apartments sold for the first time

• newly built townhouses that haven’t been lived in

• house and land packages where the dwelling will be new

Off the plan buying is common in Melbourne, especially around the CBD fringe, Docklands and Southbank, and in new townhouse pockets in the middle ring. The contract can be long and the build can stretch out, so you want to understand the risks, timelines, and sunset date mechanics. If that’s your route, it’s worth reading about off-the-plan purchasesso you know what can shift between signing and settlement, and what needs to be locked in before you commit.

Vacant residential land

Vacant land can be approved, but it usually comes with a clear expectation that you’ll build within a set period. If you’re buying land with a plan to build, make sure your finance and build timeline are realistic, not optimistic. A delay with permits or builders can create compliance stress later.

Established dwellings: only where an exception applies

During the current ban, established dwellings are not the standard option for foreign buyers. There are exceptions, but they’re narrow and fact specific. If you think one might apply to you, treat that as a ‘pause and check’ moment and get advice before you commit to a contract.

FIRB fees in the 2025–26 year: what to budget for

FIRB fees scale with the value of what you’re buying, and they are indexed each year. The statutory decision clock generally doesn’t start until the correct fee is paid, so an incorrect fee can cause delays while it’s fixed.

For 1 July 2025 to 30 June 2026, these are common residential fee tiers that catch Melbourne buyers, shown side by side to illustrate how established dwelling fees sit above new dwelling or vacant land fees.

Higher price brackets continue in tiers. If you’re looking at a prestige purchase in South Yarra or Brighton, the fee can climb quickly.

Also remember FIRB is only one part of the cost plan. In Victoria, many foreign buyers also need to budget for foreign buyer stamp duty, plus lender requirements, owners corporation fees in apartment buildings, and ongoing holding costs.

How long does FIRB approval take?

A lot of people hear ‘30 days’ and assume it’s always that simple. The decision period is commonly described as 30 days once a complete application is lodged and the correct fee is paid, but requests for more information and formal extensions can stretch the real world timeline.

In practical Melbourne buying terms, plan on:

• time to collect documents and confirm ownership details

• time to lodge and pay

• time for assessment, plus any back and forth if the case officer requests more

If your contract has a tight settlement date, or you’re buying off the plan and your visa status might change, build breathing space into your plan.

How FIRB fits into the Victorian buying timeline

Most buyers think in steps: find the property, sign the contract, get the loan, settle, pick up keys. FIRB sits inside that journey, not beside it.

If you’d like a plain English view of the stages from signing through to settlement, see the property settlement process. From a FIRB angle, the key is to match your approval timing to your contract deadlines.

Private sale contracts

In a private sale, you may be able to negotiate a condition so the contract only proceeds if FIRB approval is granted within a set period. That condition needs to be drafted properly, with realistic dates, and it should match the way your deposit is held and when settlement is due.

Auctions

Auctions are the sharp edge. If you win, you’re usually bound straight away, and the usual safety nets are limited. If FIRB approval is required for you, you need a plan before auction day. That might mean applying early for a specific property once you’re confident it’s the one, or getting advice about whether any certificate option is available and suitable for your situation.

Do not rely on a casual ‘you can sort it later’ conversation at an open for inspection. Auction day is not the time for guesswork.

Off the plan

Off the plan deals can give you time between signing and settlement, but they also bring longer horizons and more moving parts: build delays, changes to finishes, and notices that trigger settlement. FIRB approval should be lined up with the contract’s key dates, and you should understand what happens if the build runs late or your circumstances change.

A step by step way to apply without creating delays

Most delays we see are preventable. A clean application usually comes down to clarity and preparation.

• Confirm the property type: new, vacant land, or an established dwelling where you’ve confirmed an exception

• Map the ownership structure in plain terms, including percentages and control

• Gather identity documents and evidence of visa status

• Gather evidence of funds and the purchase details (price and contract)

• Lodge the application through the online portal and pay the correct fee

• Respond quickly if more information is requested

If you’re buying through a company or trust, the ownership chart often takes longer than people expect. Start that early.

Documents you’ll usually need ready

Every application is different, but these are common items:

• passport and identity documents

• visa grant notice and evidence of current status (where relevant)

• the contract details, including address and price

• evidence of funds and loan approval (if any)

• corporate or trust documents where you’re not buying in your personal name

• build plans and a proposed timeline if you’re buying vacant land

If your documents are not in English, you may need a translation that meets the portal’s requirements. Allow time for that too.

Common Melbourne traps for foreign buyers

We see a few themes repeat in local deals.

Falling in love with an established home during the ban

It’s easy to get attached to a place, especially when you’ve spent months visiting opens in the inner north or hunting for school zones in the east. But if the property is an established dwelling, the current rules will usually block the purchase for a foreign person. Find this out early, not after you’ve paid for inspections and finance work.

Underestimating the cost stack

FIRB fees are often the first surprise. Victorian taxes and charges can be the second. The numbers can move quickly at Melbourne price points, so a written cost plan matters.

Signing a contract with the wrong special conditions

A condition that is too short, too vague, or poorly drafted can leave you exposed. In the worst case, you could be stuck with a contract you can’t complete, plus default interest and costs.

Letting the paperwork lag

FIRB applications can move smoothly when documents are ready on day one. When buyers lodge with gaps and plan to ‘upload later’, it often turns into delays and repeated requests.

Not thinking about life after settlement

Some approvals come with conditions and reporting duties. If you plan to leave the property empty for long periods, or you’re buying land and delaying the build, you need to understand the compliance side as part of your decision.

Where a Section 32 review can save you real stress

Before you sign a Victorian contract, the vendor must provide a Section 32 vendor statement. It’s packed with information that matters to both locals and foreign buyers: title details, easements, planning information, outgoings, and owners corporation details for apartments.

For foreign buyers, it also ties into your FIRB plan because it helps confirm what you’re actually buying, and whether the property is new or established. That single distinction can change the entire outcome.

If you’d like a broader view of the buying journey and the key checks, our guide to the property purchase processlays out the moving parts in a way that’s easy to follow, even if you’re not a first home buyer.

How Pearson Chambers Conveyancing can help

Buying in Melbourne as a foreign person can feel like you’re juggling two tracks at once: the Victorian contract and settlement steps, plus the federal approval rules. The smoothest transactions are the ones where those tracks are lined up from the start.

At Pearson Chambers Conveyancing, we can:

• review your Section 32 and contract before you sign

• help you shape a contract that allows time for approval where the deal type permits it

• flag practical timing issues around auctions, finance, and settlement

• work alongside your accountant or migration adviser so everyone is working from the same facts

If you’re looking at a property and want clarity before you commit, contact us for a complimentary Section 32 contract review.

Email: contact@pearsonchambers.com.au

This article is general information only and isn’t legal advice.