In April we outlined new details on several regional visas to be introduced on 16 November 2019. Coinciding with these new visas are changes to the existing points test for skilled migration.

Immigration SA has announced it will temporarily will close its General Skilled Migration (GSM) state nomination application system from 24 June to early July 2019 in order to undertake system updates.

Business visa holders, whether they be permanent or provisional, must continue to meet certain conditions after arrival in Australia. Being aware of all the visa conditions and utlising the available support is key to ensuring a successful venture in Australia.

It was recently announced by the Premier of South Australia, Steven Marshall, that the state would be home to the latest Mortal Kombat film production. Using the facilities at Adelaide Studios, the production is expected to generate 780 jobs and inject $70 million into the local economy.

Read our latest Australian Immigration updates from 26th June 2023 here >>>

Updated June 2023

Buying an Australia property as an immigrant on a visa can be difficult. Whether you are a permanent resident or a temporary resident, there are many visa requirements as well as Foreign Investment Review Board (FIRB) requirements a migrant must be aware of. When investing in Australian property temporary residents, foreign investors, and even visa holders may be approved to purchase using home loans.

Australia has strict guidelines for foreign non-residents and temporary residents who wish to purchase a house in Australia. Back in March 2015, a Sydney residential property bought for A$39 million, the “Villa del Mare”, received instructions from the Treasurer of the Australian Government that it must be sold off. The purchase was found to be not compliant with the Foreign Acquisitions and Takeovers Act (1975), which requires foreign investors to notify the Treasurer through the Foreign Investment Review Board (FIRB) before purchasing residential real estate. Since then there have been additional properties that were found to be illegally purchased and forced to be sold.

Who creates and enforces the guidelines on purchasing properties as a foreign non-resident or temporary resident?

The Foreign Investment Review Board (FIRB) is the governing body which ensures residential properties are bought in compliance with the Foreign Acquisitions and Takeovers Act (1975). In addition to the assessment of foreign purchase of residential property, the FIRB also assesses foreign investment in Australian businesses, especially in agriculture and mining.

The FIRB serves as a control to prevent foreign investors from over-inflating residential property prices through excessive investment. As such a list of requirements was created to ensure local Australian interests are protected.

What residential properties can be bought by an Australian temporary resident? How is it different for permanent residents?

Australian permanent residents share the same treatment as Australian citizens with regards to the purchase of residential property. There are no FIRB restrictions for permanent residents. 

On the other hand, temporary residents and foreign non-residents are subject to various rules when purchasing residential property.

What is the definition of a temporary resident or foreign non-resident for the FIRB assessment?

According to the FIRB, a temporary resident is an individual who:

• holds a temporary visa that permits them to remain in Australia for a continuous period of more than 12 months (regardless of how long remains on the visa); or
• is residing in Australia, has submitted an application for a permanent visa, and holds a bridging visa which permits them to stay in Australia until that application has been finalized.

Temporary residents would include holders of the following Australian visas:

• All temporary visas
  • Temporary Skilled Shortage visa (subclass 482)
• Business Innovation and Investment (Provisional) visa (subclass 188/888)
• Student visas that are 12 months or longer, such as:
  • Independent ELICOS Sector visa (subclass 570)
  • Schools Sector visa (subclass 571)
  • Vocational Education and Training Sector visa (subclass 572)
  • Higher Education Sector visa (subclass 573)
  • Postgraduate Research Sector Temporary Visa (Subclass 574)
  • Non-Award Sector visa (subclass 575)
• Temporary Graduate visa (subclass 485)
• Skilled Regional (Provisional) visa (subclass 489)

Previously, the 457 Temporary Work Visa would also be included until it was replaced by the TSS 482 Visa.

If your temporary visa is less than 12 months you are considered to be a foreign non-resident.

What are the rules for purchasing a residential property as a temporary resident?

Residential properties are categorized as “new dwellings” or “established dwellings”

New Dwellings

New dwellings are homes built on residential land which has not been previously sold as a dwelling and has:

• not been previously occupied; or
• if the dwelling is part of a development and sold by the developer, it has not been previously occupied for more than 12 months in total

A refurbished or renovated residence which was previously occupied is not considered to be a new dwelling. Vacant land bought for residential construction is deemed to be a new dwelling instead. As such, “Home and Land” packages are considered to be new dwellings too, as long as:

• the development is completed within four years from the date of approval
• evidence of completion is submitted to the FIRB within 30 days of being received

There are no conditions or limitations on the number of new dwellings that can be purchased by a temporary resident. Approval is generally required before the purchase is made.

Established Dwellings

Established dwellings typically refer to residential properties that are on the secondary market. If a residential property is constructed and occupied, it is usually considered to be an established dwelling.

Temporary residents can purchase ONE established dwelling to live in as their primary residence in Australia. The property should not be used for leasing. The property also should be sold within 3 months if the temporary resident moves out of the established dwelling. In other words, an established dwelling cannot be purchased by a temporary resident to be held as an investment property. Additionally, temporary residents who want to purchase an established dwelling for redevelopment must seek prior approval from the FIRB before purchasing the property.

What are the fees associated with buying a property on a visa?

A visa holder purchasing a property will be subjected more fees and higher rates/interest rates than an Australian citizen or permanent resident. Two fees every visa holder must factor in are the FIRB acquisition fee and the Stamp Duty.

FIRB Acquisition Fee

When lodging your application with FIRB you will be prompted to pay an acquisition fee.

Acquiring an interest in residential land where the price of the acquisition is:

• $1 million or less: $13,200
• $1 million to $1,999,999: $26,400
• $2 million to $2,999,999: $52,800
• $3 million to $3,999,999: $79,200
• $4 million to $4,999,999: $105,600
• $10 million or higher: contact the Australian Tax Office for a fee estimate

View the full FIRB acquisition fee list and more details here.

Stamp Duty

Foreign citizens who want to buy or invest in residential property in Victoria (VIC), New South Wales (NSW), Queensland (QLD), South Australia (SA) and Western Australia (WA) will need to pay an additional stamp duty levy and, in some states, a land tax surcharge.

Foreign Citizen Additional Stamp Duty Surcharge By State:

• Victoria: 8%
• New South Wales: 8%
• Queensland: 7%
• South Australia: 7%
• Western Australia: 7%
• Tasmania: 8%
• Northern Territory: Currently no stamp duty

See the complete and detailed list of Foreign Citizen Stamp Duty and Taxes.

*Note: Please confirm true, up to date tax rates with state government as government bodies and tax rates do change.

There is also the possibility of being charged an annual vacancy fee. From 9 May 2017, foreign persons who purchase residential real estate will be subject to an annual vacancy charge where the property is not rented out or occupied for more than six months per year.

There are several fees, taxes, and rates that differ between states and the specific visa you are carrying. When buying property in Australia, it is highly recommended that you speak with a professional tax agent/ the Australian Taxation Office, and an accountant to ensure that you know all the fees.

At what stage do I need FIRB approval and will I be disadvantaged?

The FIRB guidelines state the you must have approval before a property can be purchased in Australia.

An offer to purchase a property may need to be conditional on FIRB approval, which may lead to delays and the offer not being accepted or as attractive as others without such conditions. The regulations state that you must complete a separate application for each property you intend to purchase. This issue can be mitigated by applying for what is called an 'Exemption Certificate'.

An Exemption Certificate allows a foreign person to purchase one unspecified property within a six-month period. The exemption certificate means that you do not have to seek individual approval for each property you are interested in. More information is available from the Australian Tax Office.

Are there any barriers to getting finance approved?

Your status as a temporary resident may impact your ability to secure finance to purchase property in Australia. Financial institutions have different restrictions on the amount you can borrow depending on your visa type and status.

Being self-employed or a business owner may also have an impact on how much you can borrow. Contacting your financial institution or financial adviser for more information.

What happens if I do not comply with the FIRB policies?

Violations or “Breach" of the FIRB policies will incur a criminal and civil penalty. Additionally, the property in question will be forced to be sold as the ownership is deemed illegal. As such it is best to comply with the FIRB policies and always contact the FIRB if you have any doubts about the procedures and requirements. You can find the contact information for the FIRB on their website listed below.

How does buying a property help a 188A Business Innovation visa holder apply for PR?

A criterion for the subclass 888 Business Investment Stream permanent business visa is that the you must meet two of the following three requirements:

• assets of AUD200,000 net value in your main business (or 2 main businesses) in Australia
• personal and business assets in Australia of AUD600,000 net value
• equivalent of at least 2 full-time eligible employees in your main business

By meeting the first requirement for business assets and also buying property, meeting the second requirement should be straight forward considering the median price of a house in Australia is over AUD500,000. This would achieve the two out three criteria meaning that the business would not need to employ two full-time eligible employees.

Does owning property enhance a permanent residence or citizenship application?

Owning a property is not an essential criterion to be met when applying for permanent residency or citizenship.

In the case of citizenship, owning a property is considered by the Department of Home Affairs in assessing the 'close and continuing link to Australia' criteria. However, it is not a compulsory requirement, and other factors such as family connections, work history, and time in Australia are also considered. 

As a temporary resident, can I rent out the properties I have purchased?

Temporary residents may have the intentions to build up a portfolio of residential properties as a form of investment. Upon purchase, many of these properties are rented out to generate passive rental income. As a temporary resident, you can do so as long as the properties being rented out are all new dwellings. By regulation, you can only purchase one established dwelling for your own residence, and not rent it out.

Comments by Chris Johnston – Principal Lawyer and Registered Migration Agent at Work Visa Lawyers

The purchase of residential property is a primary consideration for many Australian visa holders. Residential properties may be purchased as a family home and primary residence, or as a safe asset for investment. If you are a temporary residence visa holder, you need to check with the FIRB to ensure you comply with the investment policies. Failure to comply with the requirements may cause unnecessary financial losses and frustrations.

As a rule of thumb, if you are a temporary resident in Australia you must seek approval from the FIRB first before purchasing a property.

As a permanent resident, the FIRB restrictions will be lifted and as such, it is recommended that temporary residents apply for permanent residency once they are eligible. With permanent resident status, you can safely invest and purchase residential properties knowing that you are exempted from FIRB requirements.

Work Visa Lawyers understand that owning a home is a big step in settling down in Australia. We hope that this article has provided you with the necessary knowledge about purchasing your first home in Australia.

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Do you need help with an Australian visa application?

At Work Visa Lawyers we are experienced in assisting applicants in all matters relating to Australian visa applications. Our areas of expertise include Skilled Migration visas, Business Skills Migration visas, Employer Sponsored Work Visas, Partner and other Family Migration visas as well as Migration Review Tribunal, Judicial Review and Ministerial Intervention.

If you require further information regarding your Australia visa options you can contact us through:

Phone (08) 8351 9956 or +61 8 8351 9956 or email This email address is being protected from spambots. You need JavaScript enabled to view it.

Sources

• https://firb.gov.au/
• http://jbh.ministers.treasury.gov.au/media-release/011-2015/
• http://sjm.ministers.treasury.gov.au/media-release/010-2015/
• http://www.border.gov.au/
• https://firb.gov.au/guidance-notes
• https://www.homeloanexperts.com.au/non-resident-mortgages/foreign-citizen-stamp-duty/
• https://www.ato.gov.au/General/Foreign-investment-in-Australia/Residential-investment/Exemption-certificates-for-foreign-investors-of-residential-real-estate/

The latest global visa processing times published by the Department of Home Affairs show some interesting trends amongst commonly used visa products. 

After months of campaigning the Australian Federal Election was run and won on Saturday, with the Liberal and National Party Coalition led by Prime Minister Scott Morrison being returned to government. What does this mean form Australia's immigration program going forward?

Australia is facing a shortage of teachers in the medium to long term because of both the retirement of existing teachers and a general demand for teachers in specific locations and subject matter areas.

The South Australia government has released new details on the state's Designated Area Migration Agreement (DAMA), including the list of eligible of occupations. 

DAMAs assist employers in filling skilled and semi-skilled positions which are facing a labour shortage in a designated area. A DAMA offers greater access to occupations and concessions on other criteria when compared to the standard Temporary Skill Shortage subclass 482 visa. Applications under the SA DAMA are also afforded priority visa processing with the Department of Home Affairs.

Applications under the SA DAMA will commence in early July 2019.

SA DAMA summary

The SA DAMA will come under two separate agreements, each with their own list of eligible occupations and concessions available:

Adelaide Innovation and Technology Agreement

• 60 occupations are eligible
• Restricted to employers in the Adelaide Metropolitan region (Greater Adelaide)
• Age concessions to facilitate a permanent residency pathway
• All occupations have a pathway to permanent residency via the Employer Nomination Scheme subclass 186 visa.

 The full occupation list can be viewed here.

South Australian Regional Workforce Agreement

• 114 occupations are eligible;
  • 78 occupations eligible for employers in the whole of South Australia.
  • 36 occupations eligible for employers in the postcode range 5110 to 5734 (non-metropolitan SA)
• Concessions vary per occupation and include:
  • Skills and experience;
  • Temporary Skilled Migration Income Threshold (TSMIT);
  • English;
  • and age concessions to facilitate a permanent residency pathway
• Only certain occupations have a pathway to permanent residency via the Employer Nomination Scheme subclass 186 visa.

The full occupation list can be viewed here.

Concessions explained

It is important to note that not all concessions apply to every occupation. You will need to check your individual occupation on the list to see which apply. There are also several occupations listed that have no concessions available and are already eligible for the standard subclass 482 visa. In these cases it may not be necessary to apply under the DAMA , however priority processing will still be an advantage over the standard subclass 482 visa.

Occupation inclusions

The SA DAMA includes several popular occupations that will be of great interest to employers and prospective migrants. Some examples are:

• Baker (351111)
• Cook (351411)
• Diesel Motor Mechanic (321212)
• Enrolled Nurse (411411)
• Motor Mechanic (General) (321211)

There are also a number of occupations included in the SA DAMA that are not on any other skilled occupation list. Below are some examples listed by the industry they will directly benefit:

Agriculture

• Farm, Forestry and Garden Workers nec (841999)
• Fishing Hand (899212)
• Meat Process Worker (831311)
• Production Horticulturalist *
• Senior Production Horticulturalist *
• Slaughterer (831212)

Healthcare

• Aged or Disabled Carer (423111)
• Nursing Support Worker (423312)
• Personal Care Assistant (423313)
• Therapy Aide (423314)

Mining and Construction

• Driller (712211)
• Earthmoving Plant Operator (General) (721211)
• Loader Operator (721216)
• Miner (712212)
• Sand Blaster (711913)
• Scaffolder (821712)
• Shot Firer (712213)
• Truck Driver (General (733111)

Film and Gaming

• Digital Artist *
• Senior Digital Artist *

Hospitality and Tourism

• Passenger Coach Driver (731213)
• Gaming Worker (431311)
• Hotel or Motel Receptionist (542113)
• Waiter (431511)

Note: * denotes that the occupation is not listed in ANZSCO and has been identified by the SA government.

Skills and experience

An applicant for the standard subclass 482 visa must hold the relevant skills assessment for the nominated position, however under certain occupations in the SA DAMA this will not be required. Currently only lower skilled occupations are eligible for this concession (ANZSCO skill level 4). Further details on whether there will be any concession to the two years of work experience requirement are not yet available. 

Temporary Skilled Migration Income Threshold (TSMIT)

The TSMIT which applies to the standard subclass 482 visa is currently set at AUD53,900 per annum. Under the SA DAMA concession, the TSMIT can be reduced by up to 10%, which indicates a minimum salary of AUD48,510 per annum. This amount is more closely aligned to award rates, particularly in trade occupations.

English

The standard subclass 482 visa has an English language requirement equivalent to an IELTS overall band score of at least 5.0 with a score of at least 5 in each of the test components. The English concession available under the SA DAMA for certain occupations is equivalent to an IELTS overall band score of at least 4.5 with at least 4 in each of the test components.

Age

While the standard subclass 482 visa does not have any age requirements, applicants accessing permanent residency via the standard Employer Nomination Scheme subclass 186 visa must be less than 45 years of age. The SA DAMA includes an age concession that extends this to 50 or 55 years of age for selected occupations to facilitate permanent residency.

This concession is major advantage to those workers in the 45-54 age bracket who now have a much more promising pathway to permanent residency.

Pathway to permanent residency

The SA DAMA offers a pathway to permanent residency through the Employer Nomination Scheme subclass 186 visa for a majority of the occupations listed. However full details of the requirements to qualify for permanent residency via this process are still to be provided. It is also important to note that the occupation must still be on the list at the time of the permanent residency application.

It is expected that applicants will need to hold the 482 visa for at least three years before being eligible for permanent residency. So even with some age concessions in place, applicants will need to consider what their age will be at the time of lodgement for permanent residency. For example, if there is a permanent residency age concession of up to 50 years of age, but if the applicant is 48 when they are granted the 482 visa, they will not be eligible to apply after three years having turned 51. 

How long will a DAMA application take?

At this early stage, it is expected that a DAMA application will take at least three months. This includes around one month to be endorsed by the state government and around two months to receive a standard employer sponsorship approval. Once applications commence, we will have a better understanding of how long the process takes, but it is reasonable to say that a DAMA will not be able to address an employer's urgent need for staff.

What does this mean for industry and employers?

The SA DAMA provides a range of benefits to South Australia industries and employers. Of particular note are industries such as film and gaming, hospitality and tourism, agriculture, mining and construction, and the healthcare sector. In particular, several occupations that are otherwise not available for skilled migration have been included meaning that employers will now be able address these skills shortages. The TSMIT concessions will benefit employers in regional areas and bring salaries closer in-line with award rates for trade occupations.

In the development of the SA DAMA, industry and employers were able to provide input into the occupation list and concessions. It is positive to see that many aspects of the submission by the Migration Institute of Australia (SA Committee) have been adopted, particularily around the expansion of occupations available in the agriculture, construction and mining sectors.

What does this mean for employees and graduates?

The concessions provided in the SA DAMA, particularly around age and pathways to permanent residency, means that people will have more opportunities to stay in South Australia. Whether any work experience concessions will be available, a requirement that is otherwise difficult for international graduates to achieve, are yet to be made available.

Overall, the SA DAMA provides more opportunities for skilled migrants to work and settle in South Australia.

Do you need help with an Australian visa application?

At Work Visa Lawyers we are experienced in assisting applicants in all matters relating to Australian visa applications. Our areas of expertise include Partner Visas, Skilled Migration visas, Business Skills Migration visas, Employer Sponsored Work Visas and other Family Migration visas as well as the Administrative Appeals Tribunal (AAT) Review, Judicial Review and Ministerial Intervention.

If you require further information regarding your Australia visa options you can contact us through:

(08) 8351 9956 or +61 8 8351 9956 or This email address is being protected from spambots. You need JavaScript enabled to view it.

The permanent, employer-sponsored Regional Sponsored Migration Scheme (RSMS) subclass 187 visa has generated lots of attention recently for a few reasons.