FIRB & Foreign Buyers Developing Land in South Australia (2026)
Can a foreign buyer still acquire and develop land in South Australia in 2026? Generally, yes. From 1 April 2025 to 30 June 2029, foreign persons are generally banned from purchasing established dwellings in Australia, with limited exceptions. This does not generally close the pathway for vacant-land development or new dwellings, but FIRB approval and conditions still apply (source: ATO — Banning foreign purchases of established dwellings). Limited exceptions can include redevelopment that adds 20 or more dwellings. For anyone weighing up a FIRB foreign buyer develop land SA pathway, the route from vacant, residentially-zoned land to finished homes typically remains open — but it carries a stack of federal and South Australian obligations that should be lined up before contracts are signed. Below we set out the key steps as a development management overview.
This is general information only, not legal, tax or FIRB advice. Do not sign an unconditional contract before obtaining FIRB, tax and legal advice.
FIRB approval comes first
A foreign person must generally obtain FIRB approval before signing a binding contract to acquire Australian residential land — including vacant land — regardless of value, applying online via the ATO foreign investor portal (source: foreigninvestment.gov.au — Residential land guidance). Approval to buy vacant residential land for development is typically granted on condition that construction is completed within 4 years and the land is not sold until construction is complete, which is designed to prevent land banking (source: foreigninvestment.gov.au — Residential land guidance). Actual conditions are set per approval and can vary, so confirm the exact terms on your own FIRB approval before committing.
FIRB application fees are set by a Schedule of Fees, indexed each financial year on 1 July. The schedule covering 1 July 2025 to 30 June 2026 scales the vacant residential land fee by property value, rising with each value tier (source: Treasury / foreigninvestment.gov.au — Schedule of Fees). Because this schedule updates on 1 July, confirm the current 2026-27 figures against the official schedule before relying on any specific amount; do not rely on third-party summaries for the exact fee.
The 7% foreign ownership surcharge in SA
This is where South Australia adds its own layer. Foreign persons (and foreign trusts and corporations) acquiring an interest in residential land in SA pay a foreign ownership surcharge of 7% of the value of the interest, on top of normal stamp (transfer) duty, applied to acquisitions since 1 January 2018 — and the Commissioner of State Taxation has no discretion to waive it (source: RevenueSA — Foreign Ownership Surcharge).
Critically for developers, "residential land" includes vacant land (or land with only minor improvements) where the zoning under SA planning and development laws envisages residential use (source: RevenueSA — Foreign Ownership Surcharge). In other words, a foreign buyer of vacant, residentially-zoned land in SA is typically caught by the 7% surcharge before anything is built. Where a single acquisition mixes residential and non-residential land, the surcharge generally applies only to the residential portion (source: RevenueSA — Foreign Ownership Surcharge).
Ex gratia relief for significant developments
There is a clear relief pathway. South Australia offers ex gratia relief from the 7% surcharge for foreign investors undertaking “significant developments” — assessed case by case and subject to approval by the Treasurer. A “significant development” will usually include the acquisition of residential land to develop or redevelop 20 or more allotments or lots for residential purposes (Source: RevenueSA — Revenue Ruling SDA012 / Ex gratia relief guidelines). In applicable areas, relief may also be available where the development makes a significant contribution to the relevant region under the regional significance test; however, the scope and application of that test should be checked against RevenueSA’s current guidance (Source: RevenueSA — Revenue Ruling SDA012). Applicants may seek in-principle pre-approval or final approval, and if the actual development materially differs from what was approved, RevenueSA may claw back the relief granted (Source: RevenueSA — Revenue Ruling SDA012).
Because relief is discretionary rather than automatic, applicants should read the full ruling (SDA012) and lodge a formal application — ideally before settlement, so the project's structure and approval status are clear. The way a development is structured at the land-acquisition stage often drives whether relief is available, which is one reason early feasibility study work matters.
Selling the finished product: the exemption certificate
When selling off-the-plan, new or near-new dwellings, a developer may, where eligible, apply for a New (or near-new) Dwelling Exemption Certificate, allowing foreign buyers of relevant dwellings in the development to generally avoid obtaining their own individual FIRB approval (Source: foreigninvestment.gov.au — Exemption certificates for property developers). The certificate usually applies only to projects that meet relevant scale and eligibility requirements, and not every small development will necessarily qualify. Conditions usually include no more than 50% of the dwellings being sold to foreign persons, a single-buyer value cap, and a per-dwelling reconciliation fee for each sale to a foreign person (Source: foreigninvestment.gov.au — Exemption certificates for property developers). The application fee and per-dwelling fees are set in the same Schedule of Fees updated on 1 July, so confirm the current 2026–27 amounts before applying (Source: Treasury / foreigninvestment.gov.au — Schedule of Fees).
Subdivision and title under the PlanSA framework
The development consenting process in SA is the same for foreign and domestic developers. Dividing land into separate allotments (subdivision) requires development approval and a Land Division Certificate of Approval issued by Planning and Land Use Services, under the Planning, Development and Infrastructure Act 2016 and the Real Property Act 1886 (source: PlanSA — Land division Certificate of Approval). Torrens title is the most common form of land title in South Australia — a single certificate of title per allotment, with resulting allotments held independently and generally without shared facilities — making it the typical title structure for foreign-developed residential subdivisions (source: SA.GOV.AU — Torrens titles). Community title is an alternative where shared common property or facilities are involved.
Ongoing federal obligations
Two ongoing duties sit alongside the development:
Register notification. Since 1 July 2023, foreign persons must notify the Register of Foreign Ownership of Australian Assets (administered by the Commissioner of Taxation under the Foreign Acquisitions and Takeovers Act 1975) when they acquire or dispose of Australian land — residential, commercial or vacant. No fee is payable to give a register notice, but failure to notify can attract infringement notices or civil penalties (source: foreigninvestment.gov.au — Register of Foreign Ownership of Australian Assets).
Vacancy fee.Foreign owners of Australian residential property are generally required to lodge a Vacancy Fee Return each year. For vacancy years starting on or after 9 April 2024, the vacancy fee is twice the relevant foreign investment application fee. The fee may apply if the dwelling was not occupied, or not genuinely available for rent, for at least 183 days during the vacancy year (Source: ATO — Vacancy fee return for foreign owners). If the land is still vacant and no dwelling has been built, a Vacancy Fee Return is generally not required; however, once multiple dwellings are completed, the reporting obligation may need to be considered for each dwelling (Source: ATO — Vacancy fee return for foreign owners).
Putting it together: the obligation stack
Before contract — Obligation: FIRB approval for vacant land; Authority: foreigninvestment.gov.au
At acquisition — Obligation: 7% foreign ownership surcharge (or ex gratia relief); Authority: RevenueSA
At/after acquisition — Obligation: Register of Foreign Ownership notice; Authority: ATO
Development — Obligation: Development approval + Land Division Certificate of Approval; Authority: PlanSA
Sales — Obligation: New Dwelling Exemption Certificate (optional); Authority: foreigninvestment.gov.au
Annually (if applicable) — Obligation: Vacancy Fee Return; Authority: ATO
Frequently asked questions
Q: Can foreign buyers still buy land to develop in SA despite the ban?The ban from 1 April 2025 to 30 June 2029 applies to established dwellings and has limited exceptions. It does not usually block the pathway for vacant land intended for development or new dwellings, but FIRB / ATO approval, conditions and fees still apply. Therefore, the “start from land” development pathway generally remains available, but approvals and conditions should be confirmed before signing a contract (Source: ATO — Banning foreign purchases of established dwellings; foreigninvestment.gov.au — Residential land guidance).
Q: Does the 7% surcharge apply to vacant land? Generally yes. The SA foreign ownership surcharge definition of residential land includes vacant land where the zoning envisages residential use (source: RevenueSA — Foreign Ownership Surcharge).
Q: How can a foreign developer reduce the 7% surcharge? There is no waiver, but ex gratia relief may be available case-by-case for significant developments of 20 or more residential allotments or lots (or under the regional significance test), subject to Treasurer approval (source: RevenueSA — Revenue Ruling SDA012).
Q: Is there a time limit to build? FIRB approval for vacant residential land is typically conditional on completing construction within 4 years and not selling the land until construction is complete (source: foreigninvestment.gov.au — Residential land guidance).
Q: Do foreign owners have ongoing reporting duties? Yes — notifying the Register of Foreign Ownership on acquisition or disposal, and potentially lodging an annual Vacancy Fee Return (sources: foreigninvestment.gov.au — Register of Foreign Ownership of Australian Assets; ATO — Vacancy fee return for foreign owners).
How Cyberate PM can help
The biggest risk in a develop-from-land project for an overseas investor is a timing or structuring mismatch: a FIRB condition, the 7% surcharge, an ex gratia application and a PlanSA land-division approval that each move on different clocks. As an Adelaide-based development manager, Cyberate PM sequences these so they line up rather than collide — confirming FIRB conditions before contract, structuring the acquisition so a significant-development ex gratia application has the best chance of approval, and managing development approval through to the Land Division Certificate of Approval and titles. We also coordinate your licensed lawyers, tax advisers and conveyancers so nothing falls between the cracks.
If you are weighing a develop-from-land project, see how we work with foreign and overseas investors, and read our related guides on structuring a landowner JV and profit split in Adelaide and running a feasibility study. To pressure-test your specific site against the current FIRB, RevenueSA and PlanSA requirements before you commit, book a project review with Cyberate PM.
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