Australia’s Foreign Investment Framework: Updates and Reforms in 2026
Sydney, 16 January 2026 – Australia’s foreign investment regime, administered by the Foreign Investment Review Board (FIRB), continues to evolve to balance economic growth with national interests. Recent reforms, including new merger control rules and enhanced security tests, aim to streamline processes while protecting sensitive sectors. This article outlines key thresholds, recent changes, and implications for foreign investors.
Foreign Investment Thresholds
The FIRB oversees foreign acquisitions based on monetary thresholds, which vary by investor type and asset category. For non-land proposals, thresholds start at A$339 million for non-free trade agreement partners, rising to A$1,464 million for free trade agreement countries like the United States and China. Land acquisitions have lower thresholds, with residential land at A$0 for foreign persons, but require approval for significant holdings. These thresholds are indexed annually on 1 January.
Key Facts on Foreign Ownership
| Category | Threshold |
|---|---|
| Non-land acquisitions (non-FTA partners) | A$339 million |
| Non-land acquisitions (FTA partners) | A$1,464 million |
| Agricultural land | A$15 million |
| Residential land | A$0 (approval required) |
| Foreign government investors | A$0 (approval required) |
Recent Reforms and Enhancements
In 2025, the Foreign Investment Portal underwent updates to improve user experience and functionality. Guidance notes were revised on residential land and fees, clarifying the temporary ban on foreign purchases of established dwellings from 1 April 2025. From 1 January 2026, new mandatory merger control rules require ACCC notification for acquisitions meeting thresholds, with exemptions for certain land deals. The framework also includes reforms to strengthen national security tests, allowing the Treasurer to impose conditions or require divestment in sensitive sectors like energy and telecommunications.
Frequently Asked Questions
What constitutes a foreign person under Australia’s regime?
A foreign person includes foreign governments, controlled corporations, trusts, and individuals not ordinarily resident in Australia. This broad definition ensures comprehensive oversight of foreign ownership.
Do all foreign investments require FIRB approval?
Not all; only those exceeding thresholds or involving notifiable national security actions require notification. Exemptions apply for certain interfunding transactions and lower-value acquisitions.
How does the national interest test work?
FIRB assesses proposals against factors like national security, competition, economic impact, and investor character. The Treasurer decides, with potential conditions or prohibitions.