Foreign Investment Review Board (FIRB) compliance for foreign investors
Foreign persons investing in Australia must comply with the Foreign Investment Review Board (FIRB) framework under the Foreign Acquisitions and Takeovers Act 1975. Approval is required for certain investments depending on the type, value, and sector. This guide sets out 10 core obligations.
Coverage
Foreign persons (individuals not ordinarily resident in Australia, foreign corporations, foreign government investors) investing in Australian land, businesses, agricultural land, or sensitive sectors.
Legal basis
The Foreign Acquisitions and Takeovers Act 1975 (Cth) and the Foreign Acquisitions and Takeovers Regulation 2015. The Treasurer makes decisions on advice from FIRB.
The obligations
Determine foreign person status
Determine whether the investor is a foreign person under the Act. Includes individuals not ordinarily resident, foreign corporations, and foreign government investors.
Identify the type of investment
Determine whether the investment is in residential land, commercial land, agricultural land, mining tenements, business assets, or shares.
Apply the relevant monetary threshold
Check the relevant monetary threshold for the investment type. Thresholds vary based on the investor type and sector.
Identify sensitive sector considerations
Sensitive sectors (defence, telecommunications, critical infrastructure, media) have lower or zero thresholds and additional scrutiny.
Apply for FIRB approval if required
Apply for FIRB approval before completing the transaction. Most acquisitions cannot complete until approval is granted.
Pay the application fee
Pay the FIRB application fee. Fees vary significantly based on the type and value of the investment.
Comply with conditions
Comply with any conditions imposed on the approval — including reporting, divestment, or development obligations.
Report annual compliance
For some approvals, report annually on compliance with the conditions to FIRB or the ATO.
Notify changes
Notify FIRB of any material changes affecting the approval, including changes in ownership of the foreign investor.
Maintain records
Maintain records of the investment and compliance with conditions for at least 5 years.
What happens if you do not comply
Civil penalties for breaching the Act range from infringement notices to substantial fines (up to $3 million for individuals, $15 million for corporations). Criminal offences apply to serious breaches and carry imprisonment and significant fines.
Reporting requirements
Annual compliance reports for some approvals. Notifications of material changes within prescribed timeframes.
What firms should do today
- Engage Australian counsel before structuring the investment
- Confirm foreign person status and the relevant threshold before signing
- Allow 30-90 days for FIRB approval in the deal timeline
- Document compliance with any approval conditions
- Set up annual review of conditions for ongoing compliance
Compliance with Quillio
Quillio supports FIRB compliance by identifying when approval is required, drafting application narratives, and tracking compliance with conditions. See /practice-areas/commercial-lawyers or start a free trial.
This guide is general information about FIRB compliance — not legal advice. FIRB matters are complex; always obtain specialist advice.
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