What is the FIRB?
The Foreign Investment Review Board (FIRB) is a non-statutory body that advises the Australian Treasurer on foreign investment proposals. The FIRB plays a critical role in assessing whether foreign acquisitions of Australian assets are consistent with Australia's national interest.
For businesses and individuals from India, Malaysia, and other Asia-Pacific nations looking to invest in Australia, understanding FIRB requirements is essential. Non-compliance can result in significant penalties, including forced divestiture, civil penalties up to AUD $3.3 million for individuals and AUD $16.5 million for companies, and in severe cases, criminal prosecution.
Current Screening Thresholds
FIRB screening thresholds vary depending on the investor's country of origin, the nature of the investment, and whether the target sector is classified as sensitive:
For FTA Partners (including India under ECTA)
- Non-sensitive business acquisitions: AUD $1.3 billion
- Sensitive business acquisitions: AUD $310 million
- Agricultural land: AUD $15 million cumulative
- Agricultural businesses: AUD $70 million
Residential Real Estate
All foreign purchases of residential real estate require FIRB approval regardless of value. This includes new dwellings, established dwellings (with limited exceptions), and vacant land for development.
The National Interest Test Explained
The national interest test is the primary framework through which FIRB assesses foreign investment proposals. The test considers:
- National Security: Does the investment pose any risk to Australia's national security?
- Competition: Will the investment substantially lessen competition in a market?
- Tax Revenue: Is the investment structured to minimize Australian tax obligations?
- Economic Impact: What is the net economic benefit to Australia?
- Character of the Investor: Does the investor have a track record of compliance?
Application Process & Timeline
The FIRB application process typically follows these stages:
Initial applications are lodged via the FIRB portal. The statutory review period is 30 days from the date of a complete application, though this can be extended by an interim order for up to 90 additional days. In practice, most straightforward applications are resolved within 30–45 days.
Application fees range from AUD $2,000 for residential property applications to AUD $113,400 for acquisitions valued at AUD $1 billion or more.
Common Pitfalls to Avoid
Based on our extensive experience advising cross-border investors, common pitfalls include:
- Failing to identify that a transaction requires FIRB approval (particularly for indirect acquisitions)
- Incomplete applications that trigger statutory extension periods
- Inadequate attention to conditions imposed on approved investments
- Not considering the cumulative nature of agricultural land thresholds
- Underestimating the time required for approvals when structuring transaction timelines
Collins Quarters International has successfully guided over 200 FIRB applications for clients in the India-Australia and Malaysia-Australia corridors. Contact our Foreign Investment team for strategic FIRB advisory.
