The Australian Government has a special policy to regulate foreign investment and to encourage investment in Australia. The government feels that such investment should be consistent with the needs of the Australian community. At the same time, the Government realises that overseas investment is a major contribution to the development of Australia's industry, resources and people.

A foreign investor can be described as a person not ordinarily a resident in Australia or a corporation, business or trust in which a foreigner and any associates own more than 15% or in which several foreigners own more than 40%. Australian real estate is open to various forms of foreign investment. These include:

• Purchase of developed commercial real estate valued at AUD$5 million or greater.
• Purchase of urban real estate - any size - unless exempt under regulations.

Unless contrary to national interest, proposed purchase of real estate development (within 12 months) is normally approved.

Australian citizens living abroad who hold permanent visas or are entitled to hold a 'special category' visa are exempt from examination. Approval is usually given to foreign investors to purchase vacant residential land on condition that construction on a home is to commence within twelve months. The purchase of home units and townhouses off the plan, under construction or newly constructed (but never lived-in) will also usually be granted, providing that no more than 50% of the dwellings in any one building are owned buy foreign investors. Approval is also normally granted for:

1. Purchase of senior executive residents by foreign companies.
2. Purchase in Australia by foreign nationals who are temporary residence.
3. Foreign national spouses of Australian citizens who are living as joint tenants (in Australia).

Unless contrary to the national interest proposed purchase of commercial development is normally approved, but approval is determined by the Government on a case by case basis.