On 10 December 2023, the Australian Government announced changes to the Foreign Investment Review Board (FIRB) residential land fee rules. Designed to improve housing affordability and supply, the changes include reduced FIRB application fees for Build to Rent projects.
The Government will make sure foreign investment application fees for Build to Rent projects are at the lowest commercial level – no matter the kind of land involved.
“Currently Build to Rent investors can be subject to different, higher fees if their projects involve particular kinds of land, like residential land.”
The Hon Dr Jim Chalmers, MP Treasurer, with Julie Collins, Housing Minister
Lowering the fees for these investments will help to ensure the foreign investment framework is consistent and predictable for all Build to Rent investors. It also aims to encourage the development of Build to Rent projects across the country, that are specifically designed, built, and managed to provide long‑term rental options for Australians.
The application of commercial foreign investment fees to all future Build to Rent projects will apply after 14 December 2023. These changes to foreign investment rules are part of the Albanese Government’s broad and ambitious agenda to improve housing affordability and supply.
The Property Council of Australia also highlights that the lowering of foreign investment application fees for Build to Rent projects will boost the investment appeal of new rental housing supply that offers well-located, secure, customer-led and community-oriented housing.
“Build to Rent has the potential to create 150,000 homes over the next decade, but the settings must be right. To give people the full spectrum of affordable housing choice we need to tap into institutional investment and today’s announcement is an important step. Encouraging overseas investment to go into new assets makes good sense.”
Mike Zorbas, Chief Executive, Property Council
Over the past 50 years, overseas investment has built and continues to build the best parts of Australian cities and towns.
Property Council Chief Executive Mike Zorbas welcomed the announcement, noting high foreign investment fees are a disincentive for global investment that is needed to achieve the country’s 1.2 million homes by 2029 housing target.
