• Written by: James Carey, CA CTA
• 19/02/2026

FIRB Exemptions Explained: When Foreign Investors Don't Need Approval [2026]

Not every foreign investment in Australia requires approval from the Foreign Investment Review Board (FIRB). The Foreign Acquisitions and Takeovers Act 1975 (FATA) and its regulations carve out a range of exemptions that allow certain transactions to proceed without notification or approval.

Understanding these FIRB exemptions can save you weeks of processing time, thousands of dollars in application fees, and significant uncertainty during deal execution. But misidentifying an exemption that does not actually apply to your situation carries serious legal consequences, including criminal penalties and forced divestiture.

This guide explains every major FIRB exemption available in 2026 — from automatic threshold-based exemptions and special rules for New Zealand investors, to exemption certificates and the sectors where no exemption exists at all. For a comprehensive overview of Australia's foreign investment framework, see our complete FIRB guide for foreign investors.

What Are FIRB Exemptions?

FIRB exemptions are provisions in Australian foreign investment law that remove the obligation to notify the Treasurer and obtain approval before completing an investment. They exist because not every foreign transaction poses a risk to Australia's national interest, and the government recognises that screening low-risk investments wastes resources on both sides.

Exemptions fall into two broad categories:

• Automatic exemptions — situations where the law itself excludes your transaction from the notification requirement, such as investments below monetary thresholds or investments by New Zealand nationals.
• Conditional exemptions — situations where you must apply for and receive an exemption certificate before relying on the exemption, such as programs of multiple lower-risk investments.

Critically, even when a monetary threshold exemption applies, a national security exemption never does. If your investment involves a national security business or national security land, FIRB notification is mandatory regardless of value. The same applies to media businesses, where the screening threshold is $0.

Automatic Exemptions

Below-Threshold Acquisitions

The most common FIRB exemption is simply falling below the relevant monetary threshold. If your investment is valued below the applicable limit, you are not required to notify FIRB. These thresholds are indexed annually on 1 January (except for agricultural land and Thailand-specific thresholds, which are fixed).

The 2026 thresholds differ significantly depending on your country of origin and the type of investment:

Business Acquisitions (20%+ Interest)

FTA partner countries include: Canada, Chile, China, Hong Kong, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, South Korea, the United Kingdom, the United States, and Vietnam (plus other CPTPP/TPP-11 parties).

Agribusiness Acquisitions (10%+ Direct Interest)

If your investment falls below the applicable threshold, you do not need to notify FIRB. However, the Treasurer retains a "call-in" power for investments that raise national security concerns, even if they are below threshold.

For a detailed breakdown of every threshold by investment type and country, see our 2026 FIRB notification thresholds guide.

New Zealand Investors (CER/ANZCERTA)

New Zealand investors receive preferential treatment under Australia's foreign investment regime, reflecting the deep economic integration between the two countries under the Closer Economic Relations Trade Agreement (ANZCERTA/CER).

• Agribusiness: NZ investors enjoy the elevated $1,498 million threshold for agribusiness, while most other FTA partners face the lower $75 million cumulative limit.

• Agricultural land: NZ investors benefit from a $1,498 million threshold, compared to the standard $15 million cumulative threshold that applies to most other foreign investors.

• Developed commercial land: NZ investors can acquire developed commercial property valued below $1,498 million without notification.

• National security businesses and land — the $0 threshold applies regardless of nationality.

• Media businesses — the $0 threshold applies to all foreign persons, including New Zealanders.

• Sensitive sectors — the lower $347 million sensitive sector threshold applies.

• Foreign government investors — NZ government entities must still notify for all direct interests.

Passive Portfolio Investments Below 10%

Generally, acquiring less than a 10% interest in an Australian entity does not trigger FIRB notification — provided the investor is not in a position to influence, participate in, or determine the entity's central management and control.

This means that passive portfolio investments, such as purchasing a small parcel of shares on the ASX, typically fall outside the FIRB regime entirely. The exemption reflects the reality that small, passive holdings do not give a foreign investor meaningful control over an Australian business.

However, there are important caveats:

• Foreign government investors (FGIs) face a lower threshold. If a foreign government entity acquires a direct interest of 10% or more, or any interest that gives it influence over the entity, notification is required at a $0 threshold.
• National security businesses have a $0 threshold regardless of the percentage acquired.
• Media businesses have a $0 threshold for interests of 5% or more.

Certain Managed Investment Schemes

Australian managed investment schemes (MIS) may benefit from exemptions where the foreign investor's interest is passive and does not confer control. Specifically, acquisitions of interests in widely held managed investment schemes that are listed on the ASX are generally treated the same as passive portfolio investments — below 10%, no notification is required.

For unlisted managed investment schemes, the rules are more nuanced. If the scheme holds Australian land or operates a business, the standard thresholds apply based on the underlying assets.

Australian Government Entity Purchases

Investments made by or on behalf of Australian Commonwealth, state, or territory governments are exempt from FIRB screening. This exemption recognises that domestic government entities do not raise the foreign ownership concerns that the regime is designed to address.

Conditional Exemptions

Exemption Certificates

If you plan to make multiple lower-risk investments over time, applying for individual FIRB approval for each transaction is expensive and slow. An exemption certificate provides up-front acceptance for a program of investments, allowing you to proceed with qualifying transactions without separate notifications.

|—|—|—|—|
| Low-risk business EC | Acquiring small entities in non-sensitive sectors | $36,900 | $100M per investment, $500M aggregate |
| Low-risk commercial land EC | Acquiring interests in developed commercial land | $36,900 (may be reduced to $10,600) | $50M per transaction, $200M aggregate |
| Restoration variation | Amending limits on an existing EC | $10,600 | Restores original investment program |
| New dwelling EC (developers) | Developer certificate covering 50+ new dwellings | Varies | Max 50% sold to foreign buyers |
| Passive FGI EC | Foreign government entities with passive upstream investors | Varies | Standard non-FGI thresholds apply |

2. Pay the applicable fee (a Payment Reference Number is required)
3. FIRB assesses the application against the national interest test on a case-by-case basis
4. If approved, the certificate covers qualifying investments within its scope and financial limits

• The applicant entity — typically the fund manager, not the fund — must demonstrate this investment history
• Foreign government investors are excluded from low-risk business ECs
• Investments must not involve sensitive sectors, national security businesses, or excluded land categories (e.g., government-leased land, data storage facilities, critical infrastructure sites)

Business Restructures

Internal corporate reorganisations that do not change the ultimate foreign ownership of Australian assets are generally exempt from FIRB notification. The rationale is straightforward: if the same foreign person controls the assets before and after the restructure, there is no new foreign investment to screen.

Common examples include:

• Transferring assets between wholly-owned subsidiaries within the same corporate group
• Merging two entities under common foreign ownership
• Converting a branch operation into a subsidiary (or vice versa) without changing the ultimate beneficial owner

However, this exemption requires careful analysis. If the restructure introduces a new foreign person into the ownership chain — even within the same corporate group — notification may still be required. Professional advice is strongly recommended before relying on this exemption.

Rights Issues and Dividend Reinvestment Plans

Foreign investors who maintain or acquire shares through a rights issue or dividend reinvestment plan (DRP) are generally exempt from FIRB notification, provided their proportional interest in the entity does not increase beyond what they already hold.

This exemption ensures that foreign shareholders are not penalised for participating in standard corporate capital-raising activities that are offered to all shareholders on equal terms. If a rights issue would increase a foreign investor's interest above the notification threshold, the exemption does not apply and approval must be sought.

Sectors with Special Rules

Residential Property — No Exemption for Foreign Persons

This is the area where foreign investors most commonly assume an exemption exists when it does not. Foreign persons must always notify FIRB before acquiring an interest in residential land, regardless of value. There is no monetary threshold — the screening limit is $0.

Additionally, a temporary ban on foreign persons purchasing established dwellings is in effect from 1 April 2025 to 31 March 2027. During this period, foreign buyers are generally limited to:

• New dwellings (not previously sold or occupied)
• Vacant land (with a condition to build within a specified timeframe)
• Developments increasing housing supply (redevelopments resulting in at least 20 additional dwellings)
• Build-to-rent developments and commercial-scale housing (retirement villages, aged care, student accommodation)

Temporary residents may be granted approval to purchase a single established dwelling to live in, subject to conditions including a requirement to sell when they leave Australia.

Agricultural Land — Cumulative $15 Million Threshold

Agricultural land has its own notification rules that catch many investors by surprise. The threshold is a cumulative $15 million — meaning it applies to the total value of all agricultural land held by the foreign investor across Australia, not just the current transaction.

This means even a small rural property purchase can trigger FIRB notification if the investor already holds other agricultural land that brings the total above $15 million. The threshold is not indexed annually, so it remains fixed at $15 million regardless of inflation.

• Thailand investors have a fixed $50 million threshold (also not indexed)
• Foreign government investors must notify for any interest in agricultural land ($0 threshold)

Media — Special Rules Regardless of Value

Any acquisition of a direct interest (5% or more) in an Australian media business requires FIRB notification at a $0 threshold. This applies to all foreign investors regardless of nationality, FTA status, or the value of the investment.

Media businesses include newspapers, magazines, radio broadcasters, television broadcasters, and online news services that are directed primarily at Australian audiences. The strict screening reflects the government's concern about foreign influence over Australian public discourse.

Critical Infrastructure and National Security

Investments in national security businesses and national security land are subject to a $0 threshold for all foreign persons, with no exemptions available. The Treasurer can also "call in" investments that are below other thresholds if they raise national security concerns.

National security businesses include entities involved in:

• Defence and intelligence
• Telecommunications and data storage
• Electricity, gas, water, and port infrastructure
• Critical technology and sensitive data

The government introduced a mandatory notification regime for national security investments in 2021, and the scope continues to expand. Even investments that would otherwise be exempt under monetary thresholds can be caught if they involve critical infrastructure.

FTA-Specific Exemptions by Country

Australia's network of Free Trade Agreements creates a tiered system of FIRB thresholds. The higher the threshold for your country, the more transactions are effectively "exempt" because they fall below it.

The practical effect is that investors from Chile, New Zealand, and the United States enjoy the broadest effective exemptions — their high thresholds mean very few transactions require notification. Investors from non-FTA countries face lower thresholds and therefore more mandatory notifications.

Note that FTA-based higher thresholds do not apply to:

• Residential land (always $0)
• National security businesses ($0)
• Media businesses ($0)
• Foreign government investors ($0 for direct interests)

Common Misconceptions About FIRB Exemptions

Myth 1: "My investment is small, so I don't need FIRB approval."
Not necessarily. Residential property has a $0 threshold. Agricultural land uses a cumulative threshold. National security and media businesses have $0 thresholds. The value of the investment alone does not determine whether notification is required.

Myth 2: "I'm from an FTA country, so I'm exempt from FIRB."
FTA status raises your threshold — it does not eliminate the requirement entirely. High-value transactions from FTA countries still require approval. And FTA-based higher thresholds do not apply to residential property, national security, or media investments.

Myth 3: "Only direct acquisitions trigger FIRB notification."
Indirect acquisitions can also trigger notification, particularly for foreign government investors. If a foreign entity acquires a parent company and the Australian subsidiary's assets exceed certain thresholds, notification may be required even though the Australian entity was not the direct target.

Myth 4: "Temporary residents can buy property without FIRB approval."
Temporary residents must still notify FIRB, though they may receive approval to purchase a single established dwelling to live in. The approval is conditional — typically requiring the property to be sold when the visa expires or the resident leaves Australia.

Myth 5: "Exemption certificates mean unlimited investment."
Exemption certificates have strict financial limits (e.g., $100 million per investment, $500 million aggregate for low-risk business ECs). Exceeding these limits requires a new application or a restoration variation. Certificates can also be revoked if circumstances change.

Myth 6: "Below-threshold means the Treasurer can't intervene."
Even if your investment falls below the applicable monetary threshold, the Treasurer retains a "call-in" power for transactions that raise national security concerns. This power was introduced in 2021 and applies to all foreign investments, regardless of value.

Frequently Asked Questions

Do I need FIRB approval to buy a house in Australia as a foreigner?

Yes. Foreign persons must notify FIRB before acquiring any interest in residential land, regardless of the property's value. There is no monetary threshold exemption for residential property. Additionally, from 1 April 2025 to 31 March 2027, foreign persons are generally prohibited from purchasing established dwellings and may only purchase new dwellings or vacant land (with conditions).

Are New Zealand citizens exempt from FIRB?

New Zealand citizens benefit from significantly higher monetary thresholds under the CER/ANZCERTA agreement, making many commercial investments effectively exempt. However, NZ citizens who are not Australian permanent residents must still notify FIRB for residential property purchases, national security investments, and media acquisitions. NZ government entities must also notify for all direct interests.

How much does a FIRB exemption certificate cost?

Standard low-risk business and low-risk commercial land exemption certificates cost $36,900. Restoration variations to existing certificates cost $10,600. The fee for a low-risk commercial land EC may be reduced to $10,600 where a fee waiver is sought and approved. For standard (non-streamlined) exemption certificates, the fee is 75% of the fee for an equivalent individual notifiable action.

Can I invest in Australian shares without FIRB approval?

Generally, yes — if you are acquiring less than 10% of an entity and are not in a position to influence its management. Passive portfolio investments below 10% typically fall outside the FIRB regime. However, foreign government investors face stricter rules, and any investment in a national security business or media company may still require notification regardless of the percentage acquired.

What happens if I rely on an exemption that doesn't apply?

Completing a notifiable transaction without FIRB approval is a criminal offence under the FATA. Penalties include fines of up to $3.315 million for individuals and $16.575 million for corporations , as well as divestiture orders requiring you to sell the investment. The Treasurer can also impose civil penalties and make the investment void. If you are uncertain whether an exemption applies, seek professional advice before proceeding.

Need Help Navigating FIRB Requirements?

Determining whether a FIRB exemption applies to your specific transaction requires careful analysis of the investment type, your investor status, the target sector, and your country of origin. Getting it wrong can result in criminal penalties, civil fines, and forced divestiture.

Aus Business Register helps foreign investors navigate Australia's foreign investment framework, from initial FIRB assessments to company formation and ongoing compliance. Our team can advise whether your investment qualifies for an exemption or whether you need to lodge a formal FIRB application.

• Read our comprehensive FIRB guide for a full overview of Australia's foreign investment regime
• View our services and pricing for company registration, resident directors, and compliance support
• Call us at +61 2 8599 9890 to discuss your investment plans

Disclaimer: This article provides general information about FIRB exemptions as of March 2026 and does not constitute legal or financial advice. Foreign investment rules are complex and change frequently. Always seek professional advice before relying on a FIRB exemption for a specific transaction.