A recent poll by The Australia Institute reveals that only 3% of Australians support the proposed sale of Santos, a major Australian oil and gas company, to foreign investors, including the Abu Dhabi National Oil Company (ADNOC). Over half of the respondents believe the federal government should block the sale, with many calling for further investigation into its potential impact on domestic gas prices.

 

This public sentiment underscores growing national sensitivity around foreign ownership, particularly in strategic sectors like energy. For immigration law firms operating across borders, such as ours, with offices in both Australia and the UAE, such developments are highly relevant. They signal a more cautious and scrutinized approach by Australia’s Foreign Investment Review Board (FIRB), which can impact not only business migration and investor visa pathways but also broader policy attitudes toward foreign involvement in Australian industries.

 

As a firm navigating the intersection of immigration and investment, we continue to monitor these dynamics to better advise our clients on compliant and strategic entry into the Australian market.

 

Foreign Investor Review Board

 

Australia’s legal framework generally requires foreigners to apply for Foreign Investment Review Board (FIRB) approval before purchasing residential real estate in Australia.

 

However, under the Foreign Acquisitions and Takeovers Amendment Act 2015 (Act), certain people and transactions are exempt from the usual requirement for notification under the Act.

 

In summary, the following criteria must be met to be exempt from FIRB approval:

 

  • an Australian citizen (regardless of whether they are ordinarily resident in Australia or not) or a New Zealand citizen;
  • the holder of an Australian permanent visa; or
  • foreign persons purchasing property as joint tenants with their Australian citizen spouse, New Zealand citizen spouse, or Australian permanent resident spouse.

 

Note: the above-mentioned exemption does not apply to those purchasing property as tenants in common.

 

Further to the above, foreigners do not require FIRB approval to obtain an interest in residential real estate that is:

 

  • a new or near-new dwelling purchased from a developer that holds a new or near-new dwelling exemption certificate that allows the developer to sell dwellings in the specified development to foreign persons;
  • an aged care facility, retirement village, or certain student accommodation provided the interest is not above the relevant threshold. For more information, see Guidance Note 14.
  • a time share scheme where the foreign person’s total entitlement (including any associates) to access the land is no more than four weeks in any year;
  • acquired by will or devolution of law;
  • acquired directly from the Commonwealth, a State, a Territory, or local governing body, or an entity wholly owned by the Commonwealth, a State, a Territory, or a local governing body; and
  • an interest in certain residential real estate in designated Integrated Tourism Resorts.

 

Navigating through Australia’s foreign investment regime can be a complex and nuanced process. There are severe penalties for non-compliance, and therefore it is imperative that any foreigner acquiring property in Australia carefully analyse the obligations imposed under the Act.

 

You are welcome to contact our office on the below-listed contact details if you require further information.