FIRB Approval Time: How Long It Takes Under Australian Law
FIRB approval time refers to the statutory assessment period required under Australian federal law for the government to review and determine whether a foreign investment transaction may proceed lawfully. This timeframe is imposed by the Foreign Acquisitions and Takeovers Act 1975 (Cth) and operates independently of commercial urgency, contractual deadlines, or assurances from counterparties. Where a transaction requires FIRB approval, completing it before the statutory review period has concluded may render the acquisition unlawful, regardless of intent or financial consequence.
Importantly, FIRB approval time operates separately from other property-related regimes, such as state-based incentives and concessions like first home buyer grants, which are governed entirely by state revenue legislation and do not affect federal foreign investment timelines.
What FIRB Approval Time Means in Legal Terms?
In legal terms, FIRB approval time is a mandatory review period during which the Treasurer—acting on advice from the Foreign Investment Review Board—has authority to:
- Approve the proposed acquisition
- Approve the acquisition subject to binding conditions
- Prohibit the acquisition
- Extend the statutory review period where permitted by law
Importantly, FIRB approval time is not an administrative guideline. It is a core enforcement mechanism within Australia’s foreign investment regulatory framework, and it applies regardless of how or when the application was submitted, including the process used to how to apply for FIRB approval.
Importantly, FIRB approval time is not an administrative guideline. It is a core enforcement mechanism within Australia’s foreign investment regulatory framework.
How Long Does FIRB Approval Time Usually Take?
FIRB approval time usually takes around 30 to 40 days from the date a valid application is lodged, but this timeframe is not guaranteed under Australian law. The legislation provides an initial statutory review period of up to 30 days, followed by an additional decision period of up to 10 days. This means approval may be granted sooner, but it may also take longer where the law permits extensions.
Crucially, the statutory clock only starts once a complete and accurate application has been submitted. If regulators request further information, the review period is legally paused until the information is provided. More complex transactions—such as those involving residential property restrictions, national security assets, or layered foreign ownership structures—commonly exceed the standard timeframe. There is no legal mechanism to force a faster decision, and commercial settlement deadlines do not shorten FIRB approval time.
FIRB Approval Time Depends on the Type of Asset
Approval timelines vary depending on the legal classification of the asset being acquired.
Residential Property
- New dwellings and off-the-plan properties are often assessed within standard timeframes
- Established dwellings are subject to stricter controls and longer scrutiny
- Conditions relating to occupancy or resale may extend review periods
Commercial and Agricultural Land
- These transactions frequently require extended review due to economic and policy considerations
- Transactions exceeding statutory thresholds are rarely fast-tracked
Businesses and National Security Assets
- Acquisitions involving data, energy, telecommunications, infrastructure, or defence interests often require consultation with security agencies
- These reviews commonly result in extended FIRB approval time
What Commonly Delays FIRB Approval Time?
Legally recognised causes of delay include:
- Inaccurate disclosure of ownership or control
- Indirect foreign interests not clearly identified
- Changes to transaction scope after submission
- Requests for additional information by regulators
- National security considerations
Where further information is requested, the statutory clock is lawfully suspended until compliance.
Can FIRB Approval Time Be Accelerated?
No. Australian law provides no formal expedited process for FIRB approval.
It is not possible to:
- Pay additional fees for priority processing
- Rely on contractual pressure or settlement deadlines
- Substitute commercial urgency for legal compliance
The only lawful way to minimise delays is to lodge a complete, accurate application that properly reflects the transaction’s legal structure from the outset.
Legal Consequences of Misjudging FIRB Approval Time
Failing to account for FIRB approval time may result in:
- The acquisition being deemed unlawful
- Mandatory divestment orders
- Significant civil penalties
- Criminal liability in serious cases
Enforcement action may occur years after settlement, even if the asset has since been transferred.
How FIRB Approval Time Is Enforced?
FIRB approval time is enforced through statutory decision periods set under Australian federal law, specifically the Foreign Acquisitions and Takeovers Act 1975 (Cth) and its accompanying regulations. Once a valid and complete application is lodged, the Treasurer is legally allocated an initial review period—typically up to 30 days—followed by a further decision window, usually up to 10 days, to approve, impose conditions, prohibit the transaction, or extend the review.
Enforcement of this timeframe operates procedurally rather than contractually. The statutory clock automatically pauses if regulators lawfully request additional information, and it may be extended by formal notice where national interest, security, or complexity considerations apply. Importantly, FIRB approval time is not enforced for the benefit of the applicant. There is no legal right to compel a decision within a preferred commercial timeframe, and transactions completed before approval—regardless of delay—remain unlawful.
Why FIRB Approval Time Must Be Addressed Early?
FIRB approval time must be addressed early because Australian law prohibits certain acquisitions from completing until approval is granted, and there is no legal mechanism to accelerate the statutory review once an application is lodged. If FIRB approval is required and not obtained in time, the transaction cannot lawfully proceed, regardless of commercial pressure, settlement deadlines, or contractual commitments.
From a legal risk perspective, failing to plan for FIRB approval time exposes buyers to breached contracts, forfeited deposits, delayed settlements, or mandatory contract rescission. Early legal assessment ensures contracts are drafted with appropriate FIRB conditions and legally realistic timelines. At this stage, it is often prudent to find a property lawyer experienced in foreign investment compliance to avoid irreversible errors before contracts become binding.
FAQs: FIRB Approval Time
Before addressing common questions about FIRB approval time, it is important to understand that FIRB timeframes are not guidelines or service targets, but statutory review periods set by law. These timeframes operate independently of contractual settlement dates, lender expectations, or commercial urgency.
Delays can occur due to information requests, national interest assessments, or extensions exercised by the Treasurer. The following FAQs clarify how FIRB approval time is calculated, what affects processing speed, and how buyers can manage legal risk while waiting for a decision.
How long does FIRB approval usually take?
Typically 30–40 days, but complex transactions may take significantly longer.
Can FIRB approval be delayed after submission?
Yes. The review period is suspended if additional information is requested.
What happens if a transaction completes too early?
The acquisition may be unlawful and subject to divestment or penalties.
Is FIRB approval time guaranteed?
No. The legislation does not impose a fixed deadline for decisions.
Conclusion
FIRB approval time is a foundational legal requirement, not an administrative estimate. Any transaction subject to Australia’s foreign investment laws must be structured around this statutory timeframe.
Early legal assessment—supported by experienced professionals through LegalFinda—reduces enforcement risk, preserves transaction validity, and prevents outcomes that may negate the commercial value of the investment.
