Every foreign purchaser of Australian residential property needs foreign investment approval before settlement, and that requirement does not disappear because the dwelling does not exist yet. For developers selling off-the-plan, this creates a practical problem. Each contract sits behind an individual application, each application takes time, and buyers who cannot get certainty walk away. A project-level exemption certificate addresses this by shifting the approval from the individual purchaser to the project itself.

The mechanism sits within the Foreign Acquisitions and Takeovers Act 1975 and the exemption certificate regime expanded by the Foreign Investment Reform (Protecting Australia's National Security) Act 2020. Used properly, it changes how a project can be marketed and how quickly contracts can proceed.

What a Project-Level Exemption Certificate Actually Does

For this purpose, the relevant instrument today is the New or Near-New Dwelling Exemption Certificate (NDEC or NNDEC), which is granted to a developer rather than to a buyer. Earlier "advance off the plan" certificates were only issued before 1 December 2015 and are no longer the current mechanism. An NDEC or NNDEC covers a defined development, usually a specified number of dwellings in a named project, and it allows foreign persons to acquire those dwellings without lodging their own individual foreign investment application.

The distinction matters. Other categories of exemption certificate may cover a single foreign person acquiring one or more properties. A developer-facing NDEC or NNDEC runs the other way. It is the developer who applies, the developer who pays the fee, and the developer who holds the approval. Individual buyers then acquire under the umbrella of that approval.

The practical effect is that a foreign buyer can exchange contracts without waiting for their own FIRB decision. That removes one of the most common sources of delay in off-the-plan sales, and it removes the risk that a buyer's circumstances change between exchange and settlement in a way that affects their eligibility.

Who Can Apply and What Gets Covered

Applications are made by the developer or a related entity holding the relevant interest in the land. The certificate is project-specific. It does not travel with the developer to other sites, and it does not cover dwellings outside the description in the approval.

Coverage is usually expressed as a maximum number of dwellings. In general terms, a developer may receive approval for a set number of acquisitions. If the project is reworked and the dwelling count rises, the certificate typically does not automatically stretch to cover the extra dwellings.

Conditions are attached, and they are not decorative. Common conditions include:

  • Construction must commence by a specified date.
  • The dwellings must be sold as new residential premises, not resold as established dwellings before settlement.
  • Records of each foreign acquisition must be kept and reported.
  • The certificate lapses if the development does not proceed as described.

Where a project stalls or the developer changes the design, the certificate may need to be varied or a fresh application lodged. Sales teams that treat the certificate as a permanent, transferable asset create compliance exposure for the developer.

Why This Matters More Since 2025

From 1 April 2025 to 30 June 2029, foreign persons cannot purchase established dwellings in Australia. The ban was originally set to run to 31 March 2027, but in the 2026-27 Budget the Government announced it would extend the temporary ban on foreign purchases of established residential dwellings by 2 years and 3 months, until 30 June 2029. The established dwelling ban narrows the market for foreign buyers to new dwellings, off-the-plan stock and certain limited categories. That pushes more foreign demand toward exactly the type of project an NDEC or NNDEC is designed to serve.

The government has also moved to a risk-based approach to foreign investment screening, which affects how applications are assessed and how much supporting information is expected. Buyers and developers dealing with higher-risk profiles or sensitive locations should expect closer scrutiny. Our overview of FIRB application services covers how that risk assessment works in practice.

State and territory duty settings also influence off-the-plan sales. The ACT, for example, offers an off the plan unit duty exemption for eligible owner-occupier purchasers, with different rules applying to contracts exchanged from 1 July 2026. Duty concessions are a separate question from FIRB approval, and developers should not conflate the two when briefing buyers.

Fees and Timelines

FIRB application fees are indexed annually, so any figure quoted in a sales brochure or older internal document should be verified before it is used. The fee for a developer exemption certificate is calculated by reference to the number of dwellings covered and the value of the development, and it is paid by the developer at the time of application.

For developers weighing the cost, the comparison is straightforward. The certificate fee is a single project-level cost. Individual applications, by contrast, generate a fee per purchaser, plus the administrative burden of managing multiple applications, plus the risk of a buyer withdrawing because they cannot obtain approval in time. On a project with meaningful foreign buyer interest, the certificate usually pays for itself in avoided delays and lost contracts.

Processing times vary. Applications that are complete, well-documented and consistent with the project's planning approvals tend to move faster than those requiring follow-up. We do not guarantee approval outcomes, and no adviser can. What we can do is make sure an application is prepared properly the first time.

Integrating the Certificate Into a Sales Strategy

The certificate should be obtained before the sales campaign launches, not after the first foreign buyer expresses interest. Once granted, the sales team needs to understand what it does and does not cover.

Key points for sales staff:

  • The certificate covers the project, not the buyer. A buyer acquiring under it does not need to lodge a separate foreign investment application for that purchase.
  • Coverage is capped. Once the approved number of dwellings is reached, further foreign sales require either a variation or individual applications.
  • The buyer still has obligations. Reporting requirements and any conditions attaching to the acquisition remain the buyer's responsibility.
  • Immigration status is separate. A temporary resident buying to live in Australia has different considerations from an overseas investor buying for rental return, and migration advice should come from a registered migration agent.
  • Tax treatment is separate. Foreign purchaser duty surcharges, land tax surcharges and capital gains withholding are state and federal tax matters. Tax advice should come from a qualified tax adviser.

Developers selling to foreign corporations should also check whether the acquisition structure involves shares rather than direct land. A foreign corporation property purchase structured through a share acquisition can trigger notification requirements that a developer exemption certificate does not address.

Common Misunderstandings

Three errors come up repeatedly when we advise developers and their sales teams.

The first is treating the certificate as blanket approval for all foreign sales in the project. It is not. It is capped, conditioned and time-limited.

The second is assuming the certificate removes the need for the buyer to take any steps. Buyers still need to comply with conditions and reporting. A buyer who fails to do so can face penalties even though the developer held the certificate.

The third is leaving the application too late. A certificate obtained after contracts are exchanged does not retroactively fix a purchase that required approval at the time of exchange. Timing matters, and it matters from the first day of the campaign.

For developers planning a project with foreign buyer interest, the sensible sequence is to confirm eligibility, lodge the application early, brief the sales team on the conditions, and build a process for tracking acquisitions against the cap. Done properly, the certificate turns a recurring delay into a settled, predictable part of the sales process.

This information is general in nature and FIRB rules change frequently. Contact us for advice specific to your situation.