12 May 2026
Australia welcomes foreign investment, but it regulates it through the Foreign Investment Review Board (FIRB) framework. If your business has foreign ownership — or you're investing into Australia from overseas — getting FIRB compliance right is essential, because the consequences of getting it wrong can be severe.
When is FIRB approval needed?
Whether approval is required depends on several factors: who the investor is, what is being acquired (for example land, an existing business, or shares), and whether the transaction exceeds the relevant monetary threshold. Certain sensitive sectors and certain types of land attract lower thresholds or closer scrutiny.
Why it matters
Acquiring a notifiable interest without approval can lead to significant penalties and, in some cases, orders to unwind the transaction. Because approval can take time, FIRB needs to be considered early in any deal involving foreign investment — not treated as a formality at settlement.
- Identify whether the investor is a foreign person under the rules
- Work out the relevant threshold for the asset and sector
- Build approval timeframes into the transaction timetable
- Keep records demonstrating compliance
Plan for it early
The practical message is simple: if a transaction has any foreign-investment element, raise it at the start. Early analysis avoids delay, keeps the deal on track, and removes the risk of penalties down the line.
This article is general information only and is not legal advice. Laws change and every situation is different — please contact KD Legal for advice tailored to your circumstances.