What the Budget 2026–27 extension means for overseas buyers, investors, and those planning a move
In the Budget 2026–27, Australia’s federal government announced it will extend its temporary ban on foreign purchases of established residential dwellings by a further two years and three months. The ban, originally introduced in early 2025 and set to run until 31 March 2027, will now remain in place until 30 June 2029. For foreign nationals weighing up Australian residential property — whether as part of a relocation plan, an investment strategy, or a retirement consideration — this extension meaningfully changes the planning horizon.
How the Ban Has Developed and What the Extension Changes
The restriction was first announced in February 2025 and took effect on 1 April 2025, covering a two-year window through to 31 March 2027. The Budget 2026–27 announcement adds a further two years and three months, making the new end date 30 June 2029. Under this extended timeline, foreign persons — including temporary residents and foreign-owned companies — remain unable to apply to purchase an established dwelling in Australia unless a specific exception applies. The ATO is responsible for enforcement and will continue enhanced screening of foreign investment proposals relating to residential properties.
What Remains Available to Foreign Buyers Under the Exceptions
The available exceptions are described in the official announcement as “very limited.” They apply to investments that significantly increase housing supply or support its availability. Based on FIRB Guidance Note 6 (Residential Land), the confirmed exception categories are:
- Redevelopment of established dwellings that meaningfully adds to housing stock
- Developments supporting housing availability on a commercial scale — including retirement villages, assisted living facilities, aged care, and student accommodation
- Purchases for certain Australian-based employees
- Build to Rent developments
- Accommodation for workers under the Pacific Australia Labour Mobility (PALM) scheme
The existing personal exemptions also remain in place. Permanent residents, New Zealand citizens, and spouses of Australian citizens or permanent residents purchasing as joint tenants are not affected by the ban.
One thing worth noting: the detailed eligibility criteria for each category — including any scale or threshold requirements — are set out in full in FIRB Guidance Note 6. Anyone considering whether an exception applies to their situation should review that document carefully or speak with a licensed Australian property and migration adviser before proceeding.
Where and How Foreign Buyers Apply
One point worth clarifying for readers unfamiliar with Australia’s foreign investment framework: residential property applications are not submitted through the FIRB Foreign Investment Portal. They go through ATO Online Services for Foreign Investors, and both the application and the applicable fee must be submitted via that system before any purchase is completed. For new dwellings where the developer has already pre-notified the ATO on behalf of foreign buyers, individual applicants may not need to submit a separate investment proposal.
How This Affects Different Types of Buyers and Movers
The practical effect of the extension is broadly consistent across buyer types: the established dwelling market is off-limits for foreign buyers until at least mid-2029. What changes is how that constraint lands depending on what someone is trying to do.
For people considering Australia primarily as an investment destination, the extension reinforces an already clear policy signal — that foreign capital is being directed toward new supply, not existing stock. Those already holding established properties may need to think more carefully about holding periods and exit timelines given the regulatory environment is not moving toward relaxation in the near term.
For those planning a longer-term relocation or retirement move, the restriction adds a layer of complexity to the property side of the planning process. A foreign national who had expected to purchase an established home as part of settling in Australia will need to either consider new builds, assess whether a qualifying exception applies, or revisit the timing altogether. This does not necessarily block the move, but it does change how the property component needs to be approached.
Zagdim Analysis
The June 2029 extension is consistent with the government’s broader housing policy direction in the Budget 2026–27, which also proposes limiting negative gearing to new residential properties from July 2027. Taken together, these measures consistently channel foreign investment toward new supply rather than the existing stock. For foreign buyers and investors, the practical implication is that a clear new-build or supply-addition rationale is now effectively a prerequisite for accessing Australia’s residential property market. Access to the established home market is not likely to return in the near term.
The extension to June 2029 changes the planning horizon for anyone factoring Australian residential property into a relocation, investment, or retirement decision. The established home market remains closed to foreign buyers for now, and each available pathway requires either new construction or a qualifying contribution to housing supply. Understanding which exceptions actually apply — and whether any of them fit a particular situation — is the right place to start. Have questions about what this means for your situation? Let us help you clarify your options and next steps. Start here
This article is based on officially verified sources current as of 28 May 2026. Policy requirements change frequently. Always confirm your specific situation with a licensed Australian property adviser, migration specialist, or the ATO directly.
