Foreign investor ban on existing homes extended to 30 June 2029

The 2026-27 Federal Budget extends the ban on foreign purchases of established Australian dwellings by two years and three months. The ban now runs through to 30 June 2029. The Government's framing is simple: an established home bought by a non-resident foreign investor is one less established home available to an Australian first home buyer.

What changes

Non-resident foreign investors continue to be barred from purchasing established dwellings in Australia until 30 June 2029.
Exceptions for established-dwelling purchases that support housing supply (e.g. development scenarios that increase net new dwellings) continue to apply.
Permanent residents and New Zealand citizens remain exempt from screening when purchasing established dwellings as their home.
Foreign purchases of new builds remain available, subject to standard FIRB approvals and state-based foreign buyer duty surcharges.

Why extend the ban

Statement 1 of Budget Paper No. 1 ties the extension explicitly to first home buyer affordability: each year the ban runs, established homes that would otherwise be acquired by foreign investors stay in play for owner-occupiers. The measure complements the broader tax rebalancing – limiting negative gearing to new builds and reforming CGT – which is designed to pull investor demand off existing housing stock and toward new construction.

State foreign buyer surcharges still apply

The federal ban sits on top of state-based foreign buyer surcharges, which can add 7-9% in stamp duty plus annual land tax surcharges. Those state surcharges target the new-build market the federal ban leaves open, and remain a significant cost for any non-resident buyer purchasing an off-the-plan home.

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Frequently asked questions

When does the new foreign investor ban end?

The ban is extended from its previous end date by two years and three months, now running through to 30 June 2029. After that, settings revert unless legislated otherwise.

Does the ban apply to new builds?

No. Foreign investors can still purchase new dwellings off-the-plan or under construction subject to standard FIRB approvals and additional duty surcharges. The ban targets the established (existing-stock) market.

What about permanent residents and New Zealand citizens?

General exemptions from foreign investment screening continue for permanent residents and New Zealand citizens buying established dwellings. The ban is aimed at non-resident foreign buyers, not migrants and PR holders.

Are there any other exemptions?

Yes. Existing limited exceptions for purchases of established dwellings that support housing supply continue to apply. The Foreign Investment Review Board can still approve targeted purchases that contribute to net new housing.

Source: Budget Paper No. 1, Statement 1 (page 15), Australian Treasury, 12 May 2026.

Disclaimer: This information is general in nature and does not constitute financial, legal, or tax advice. Calculations are estimates only and may not reflect your exact circumstances. Eligibility criteria and dollar amounts may change without notice. Always verify with the relevant government authority, your mortgage broker, or a licensed financial adviser before making decisions.