New Dwelling Exemption Certificates Explained
The Foreign Investment Review Board offers exemption certificates for new dwelling developments. These certificates allow developers to sell to foreign persons without each buyer needing individual FIRB approval. The exemption applies to dwellings that have never been sold as established property and will be added to Australia's housing stock.
To qualify, your development must meet specific criteria. The dwellings must be genuinely new. Multi-unit developments typically qualify, as do house and land packages where construction has not commenced. We assess your development against the eligibility requirements and advise whether an exemption certificate is the right approach for your project.
The Application Process
Exemption certificate applications are lodged through the Foreign Investment Review Board portal. The application requires detailed information about your development including location, dwelling numbers, construction timeline, and developer entity structure. Processing times vary, but Treasury aims to assess applications within 30 days for straightforward matters.
Application fees apply and are based on the total value of dwellings covered by the certificate. We provide a clear breakdown of the FIRB approval cost before you proceed, so there are no surprises. Our fixed fee covers preparation, lodgement, and liaison with Treasury throughout the assessment process.
Contract Requirements for Foreign Purchasers
Even with an exemption certificate, contracts with foreign buyers require specific provisions. The contract must be conditional on the purchaser complying with FIRB requirements. If your exemption certificate has conditions attached, these flow through to individual contracts.
Standard contract templates often lack adequate foreign buyer provisions. We review your off-the-plan contracts and insert clauses that address FIRB compliance, vacancy fee obligations, and the consequences of purchaser breach. This protects your development from settlement delays caused by non-compliant buyers.
Sales Team Briefings and Due Diligence
Your sales agents need to understand foreign buyer property compliance requirements. They must collect specific information at contract stage, including visa status, country of residence, and corporate ownership details for entity purchasers. We provide briefing materials for your sales team and establish checklists to ensure nothing is missed.
Proper due diligence at the front end prevents problems at settlement. A purchaser who fails to obtain required approvals cannot settle, leaving you with a stalled unit and potential legal disputes. We help you build compliance into your sales process from day one.
Ongoing Reporting Obligations
Developers with exemption certificates must report sales to foreign persons to the Australian Taxation Office. This includes details of each foreign purchaser and the dwelling sold. Failure to report can result in penalties and may affect future exemption certificate applications.
We advise on reporting systems and timelines. Most developers integrate reporting into their settlement procedures, capturing the required information as part of the standard settlement process. We can review your current procedures and recommend improvements where needed.
