How to Budget for the Foreign Investment Review Board (FIRB) Fee

Buying property in Australia as a foreign investor means you need approval from the Foreign Investment Review Board (FIRB). This approval comes with a government fee that must be paid before your purchase can go ahead. Planning for this cost early will help you avoid last minute surprises and keep your property journey on track.

What Is the FIRB Fee?

The FIRB fee is a mandatory charge for foreign buyers who want to purchase residential property in Australia.

• It applies whether you are buying an off the plan apartment, a house and land package, or an established home.
• The amount of the fee is based on the property price bracket.
• You must pay the fee before you receive FIRB approval.

The FIRB fee is not negotiable and usually non refundable if the purchase does not proceed.

Casa Mendel | Foreign investors | Secure with $50k and $1,667 x 45 weeks

Current FIRB Fee Brackets

The fee is tiered depending on the property value. Here is a guide for residential property as of 2024:

• Up to $1 million → $14,100
• $1 million to $2 million → $28,200
• $2 million to $3 million → $56,400
• $3 million to $4 million → $112,800

Fees increase further for higher value properties and for certain land applications. Always check the latest government table before you apply.

JURA | Foreign investors | Secure with $20k and $1,625 x 48 weeks

Why You Need to Budget for the FIRB Fee

When you plan your property purchase, the FIRB fee should be part of your upfront budget alongside:

• Deposit
• Stamp duty and any foreign buyer surcharge
• Legal and conveyancing fees
• Loan application fees (if borrowing applies)

Because the FIRB fee must be paid before approval, you need to have it available at the start of the process, not just at settlement.

The Abbotsford | Foreign investors | Secure with $10k and $1,556 x 52 weeks

Timing Your FIRB Fee Payment

The FIRB application and payment happen before contracts exchange or settlement. This means you need to factor it into your early financial planning. A good approach is to budget for your deposit and FIRB fee at the same time. This ensures you can move forward without delays once you find the right property.

Flourish on Sixth Ave | Foreign investors | Secure with $20k and $1,992 x 57 weeks

How to Estimate the Fee for Your Property

1. Work out your target property price range.
2. Check the FIRB fee table for the right tier.
3. Add a 10 to 15 percent buffer in case your chosen property ends up in a higher price bracket.

Example: If you are aiming to buy around $1.9 million, budget for the $2 million tier. Even a small increase in price could push you into the higher band.

Harbour Shores | The Waterline | Foreign investors | Secure with $10k and $4,424 x 26 weeks

Budgeting Tips for First Home Buyers and Investors

• First home buyers: Save the FIRB fee alongside your deposit and stamp duty.
• Investors: Treat the fee as part of your acquisition cost. Factor it into yield and capital growth calculations.
• Developers or bulk buyers: Multiple applications may mean multiple fees. Plan ahead to avoid unexpected costs.

The Residences at Wahroonga Estate | Secure with $10k and $928 x 96 weeks

Coposit and Smarter Property Budgeting

Saving for a property deposit can feel overwhelming, especially when FIRB fees and stamp duty are added on top. That is where Coposit makes things easier. With Coposit, you can secure an off the plan property from as little as $10,000 upfront. You then pay the balance of the deposit in manageable weekly instalments while the project is being built. This approach can help free up your savings so you can cover other upfront costs like the FIRB fee and legal expenses. The Coposit app also makes it simple to track your payments and property journey.

Secret Garden | Foreign investors | Secure with $30k and $9,359 x 39 weeks

Quick FIRB Budget Checklist

• Confirm your target property price range
• Check the FIRB fee bracket
• Add the fee to your upfront budget
• Allow a buffer in case the property price changes
• Plan for stamp duty and legal costs at the same time

Harbour Shores | The Residences | Foreign investors | Secure with $10k and $11,539 x 26 weeks

FIRB Fee and Property Buying in Australia

Budgeting for the FIRB fee is a vital step for any foreign investor buying in Australia. By knowing the correct fee tier, preparing funds early, and using tools like Coposit to manage your deposit, you can make the process simpler and less stressful. Whether you are purchasing your first off the plan apartment or adding to your investment portfolio, careful planning for FIRB fees will keep your property goals on track.