Investing in Australia: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Australia.
Who can buy in Australia
Foreign buyers need Foreign Investment Review Board (FIRB) approval and historically could buy new dwellings but not existing ones. Under the Foreign Acquisitions and Takeovers Act, a temporary ban from 1 April 2025 now stops foreign persons, including temporary residents, buying established dwellings, extended in the 2026 to 2027 Budget to 30 June 2029, save narrow supply boosting exceptions. They may still buy new builds, subject to FIRB approval and surcharges. Australian citizens and permanent residents, and usually New Zealand citizens, buy freely. Tenure is freehold.
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Resident citizen or permanent resident | Yes | Freehold | No restriction |
| Foreign national, established home | No | NA | Banned 1 April 2025 to 30 June 2029, with narrow exceptionsApproval: FIRB (limited exceptions only) |
| Foreign national, new dwelling | Conditional | Freehold | Allowed with approval; large developments cap foreign ownership at 50 percentApproval: Foreign Investment Review Board |
Capital gains on a sale
Capital gains fold into your income tax. Sell an investment property held over 12 months as an Australian resident and you get a 50 percent CGT discount on the gain. Your main home is generally fully exempt. From 1 July 2025, foreign residents lose the discount entirely, even on gains built up while resident, and the main residence exemption is sharply limited. A 15 percent withholding applies on sales by foreign residents.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| Up to 12 months | Short term | Full gain at your marginal income tax rate | No discount applies |
| More than 12 months, Australian resident | Long term | Marginal rate on half the gain (50 percent discount) | No, discount method used |
| Any period, foreign resident | Foreign resident | Full gain at non resident rates, no discount from 1 July 2025 | No |
Laws change. Always consult a licensed real estate attorney before purchasing. Consult a qualified chartered accountant for advice specific to your tax profile. Rules change; verify with a professional before you transact.
Australians Buying Abroad: CGT and Foreign Income Reporting
Australia taxes residents on worldwide income and gains, so an overseas property still needs annual rental income reporting and an eventual capital gains calculation in Australian dollars. Holding past 12 months generally unlocks the 50 percent CGT discount, and a foreign tax offset prevents the same income being taxed twice.
Frequently asked questions about Australia
No. Banned 1 April 2025 to 30 June 2029, with narrow exceptions
Buying or selling in Australia?
Tell us once. Our team connects you with the right homes, or the right buyers.
We don't list homes in Australia yet. Talk to an advisor.