Tax Advisory

Temporary Ban on Foreign Ownership of Housing in Australia

2 min read

9 October 2025

Takeaways:

From 1 April 2025 to 31 March 2027, foreign buyers are banned from purchasing existing homes in Australia unless they qualify for an exemption.
Exceptions include purchases for redevelopment, commercial-scale housing, Build to Rent properties, housing for Australian-based workers, and joint purchases with eligible residents.
Foreign buyers must apply to the ATO for approval or an exemption certificate before buying—penalties apply for non-compliance.
The ban aims to ease housing market pressure and improve access for local buyers. A review will be held before the end date.

Temporary ban on foreign ownership of housing in Australia

The Australian Government has announced that, from 1 April 2025 to 31 March 2027, foreign persons (including temporary residents and foreign-owned companies) are banned from purchasing established dwellings in Australia unless an exception applies.

This temporary ban covers acquisitions of interests in land entities which hold established dwellings, as well as temporary residents purchasing an established dwelling for use as a principal place of residence.

However, foreign persons who meet specific criteria may apply for an approval or an exemption certificate with the Australian Taxation Office (“ATO”). Where approved, the foreign persons would be allowed to purchase established dwellings.

The ATO confirms that the notable exceptions include:

Foreign persons who seek to purchase an established dwelling for redevelopment and the redevelopment will significantly increase Australia’s housing stock by at least 20 additional dwellings;

Foreign persons who seek to purchase an established dwelling where the acquisition supports the availability of housing on a commercial scale. This includes (but is not limited to) proposals to acquire an interest in one or more established dwellings in multi-unit developments (such as retirement villages, assisted living or aged care facilities, and student accommodation) on a commercial scale;

Foreign persons who seek to purchase existing Build to Rent developments, where the development will continue to be operated as Build to Rent;

Purchases by foreign-owned companies to provide housing for their Australian based workers, including those participating in the Pacific Australia Labour Mobility (“PALM”) scheme; and

Foreign purchases of established dwellings by permanent residents of Australia, New Zealand citizens, and spouses of Australian citizens, permanent residents or New Zealand citizens provided the property is purchased as joint tenants.

Penalties may apply if the foreign persons buy Australian property without first obtaining approval or an exemption certificate from the ATO. It can generally take up to 30 days for the ATO to consider the application upon receipt of the application and payment of the fee from the foreign persons.

The measure aims at easing pressure on Australia’s housing market and increasing the availability of existing homes for local buyers by restricting foreign investment. The Australian Government will undertake a review before its scheduled end date of 31 March 2027 to determine whether the temporary ban will continue to operate. Depending on the outcome, the ban may be extended or modified.