If you bought an established home in Australia as a temporary resident, your FIRB approval almost certainly requires you to sell it within six months after your temporary residency ends. The ATO is now enforcing this condition with infringement notices, so this is not a technicality to leave until later.
The condition in your approval
Temporary residents could usually buy one established dwelling to live in, with FIRB approval or an exemption certificate. Those approvals came with standard conditions:
- the home must be vacant at settlement and you must not rent out any part of it
- you must live in it as your principal place of residence in Australia
- if it stops being your main residence, or you stop being a temporary resident, you must sell within six months
- you must register the purchase on the ATO’s foreign ownership register within 30 days of settlement
Many owners remember the first two conditions and forget the third. The six months begins on the day your status changes, not the day the ATO contacts you.
When do you stop being a “temporary resident”?
For foreign investment purposes, you are a temporary resident if you hold a temporary visa that lets you stay in Australia for a continuous period of 12 months or more. You are also a temporary resident if you live in Australia, have applied for a permanent visa and hold a bridging visa while that application is decided.
Common ways people stop being temporary residents:
- a student, student guardian or graduate visa expires and no new visa is granted
- a visa ends and you go back overseas
- you remain in Australia on a visa that does not meet the definition, such as a short-stay visa or a bridging visa that will not lead to a permanent visa
- a permanent visa application is refused
The condition also applies if you hold the right visa but move out. Once the home is no longer your main residence, the six-month clock starts.
If you have become a permanent resident or an Australian citizen, the position is different and you may no longer be a foreign person. Get advice on your specific facts before you rely on this.
What the penalties look like
From 1 July 2026, the infringement notice amounts for an individual are:
| Tier | Individual | When it usually applies |
|---|
| Tier 1 | $4,368 (12 penalty units) | You told the ATO about the breach before it contacted you |
| Tier 2 | $21,840 (60 penalty units) | The ATO found the breach first |
| Tier 3 | $109,200 (300 penalty units) | More serious contraventions |
Paying an infringement notice does not fix the breach. While you keep the property, the ATO can issue further notices or apply to court for a pecuniary penalty, which can be up to 50% of the property’s market value. The Treasurer can also order the property to be sold.
Other costs often build up at the same time:
- Vacancy fee. Foreign owners must lodge a vacancy fee return each year. A fee is payable if the home was not lived in or genuinely available to rent for at least 183 days, or if you lodge late. For vacancy years starting from 9 April 2024, the fee is double the original application fee.
- Victorian land tax. An absentee owner pays a 4% surcharge on top of ordinary land tax once the home is no longer exempt. Vacant residential land tax now applies across Victoria if a home is empty for more than six months in a year.
Why you can’t simply “buy back in” later
From 1 April 2025 to at least 31 March 2027, foreign persons, including temporary residents, generally cannot buy established dwellings at all. Even a temporary resident buying a home to live in is caught. If you sell now and return to Australia later on a new temporary visa, you may not be able to buy an established home again while the ban lasts.
Your options
- Sell within the six-month window. This is the simplest way to comply. Listing early gives you time to get a fair price.
- Check whether you are still a temporary resident. A new visa, a pending permanent visa application or a grant of permanent residency can change the answer. The ATO’s records are not always complete.
- Apply to vary the condition. If you need more time, a variation application must be lodged before the deadline in your approval runs out. A fee applies and approval is not guaranteed.
- Tell the ATO yourself. If you have already missed the deadline, voluntary disclosure before the ATO contacts you usually means a Tier 1 notice instead of Tier 2.
A transfer to a family member is still a disposal with its own stamp duty, tax and foreign investment issues. Don’t do it without advice.
我們如何幫助您
Chua Tan Associates advises owners in Australia and overseas on foreign investment compliance, ATO correspondence, and selling or restructuring property. We work in English, Mandarin and Cantonese. If your visa has ended or is about to end and you still own property here, contact us early, while all your options are still open.
This article is general information only and is not legal advice. The law and ATO practice change regularly. It is current as at October 2026.
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Important: This article is general information only and must not be relied on. It is not legal, tax or financial advice, does not take your circumstances into account, and may not reflect changes in the law after publication. Laws of other countries may also apply. Do not act or refrain from acting on the basis of this article. Reading it or contacting us does not create a lawyer–client relationship. Please book a consultation for advice on your situation.
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