How To Buy an Australian Farm as a Non-Citizen

Not a citizen? Not a problem: buying a farm in Australia from internationally

For many, owning a farm in Australia may seem like the ultimate dream.

Australian agriculture is globally renowned for its variety and volume of produce, defying arid climates and extreme weather conditions. The rural landscape also proves picturesque: from luscious eucalypt forests to open plains, there’s a range of natural wonders in the palm of your hands depending on your farm’s location.

However, as a foreigner, owning and operating a farm in Australia sometimes feels like an impossible goal. With of visas and investment permits to navigate and dozens of bureaucratic hoops to jump through, the obstacles to buying a farm can appear insurmountable. Making sense of all the information is also difficult, given how incomprehensible and fragmented official policies and legislation can be.

That’s why Farmbuy is here to help. This guide is intended to be a straightforward introduction to the process by which private foreign investors can buy farmland in Australia.

Defining and clarifying

As of 2015, certain purchases of farmland by foreign investors must be approved by the Foreign Investment Review Board (FIRB) before the purchase can be completed. Before we can get started on the finer details of the legal requirements, it’s necessary to clear up just who counts as a “foreign investor” and what “farmland” means.

Foreign investors are all private individuals (i.e. not a representative of a foreign government) seeking to buy property in Australia who aren’t Australian citizens, Australian expats, or permanent residence visa holders.

Expats are still counted as citizens, even if they are abroad, and permanent-residence visa holders already hold a long-term working visa and therefore do not require further qualifications for investment. New Zealand citizens are also exempt from requiring FIRB approval. Temporary residents and foreign citizens looking to invest in Australian property – in this specific case, agricultural property – will most likely need FIRB approval.

Farmland is used interchangeably with “agricultural land” or “agricultural property” in this article to mean land that’s used, or could reasonably be used, for a primary production business. Now, what’s a primary production business?

A primary production business is any business that commercially:

• Grows plants, vegetables, or fungi
• Breeds and/or sells animals and/or animal parts
• Dairy farms
• Plants, tends, or fells trees
• Mills and processes trees
• Cultures pearls
• Catches fishes, turtles, crustaceans WITHOUT using an estuary or bay

Whatever the activity, for your land purchase to be considered agricultural land with a primary production business, it must be carried out with commercial purposes and have the intent to make profit.

It is crucial to not confuse “investment in agricultural land” with “investment in an agribusiness.” The FIRB guideline and approval process for agribusinesses are different to that for farmland acquisition. This article is largely not concerned with activities surrounding agribusinesses, but we will clarify that FIRB approval is needed when a direct investment in an agribusiness exceeds a cumulative $61 million.

For further clarification, check out the FIRB guidelines here.

FIRB Policy: who needs approval?

The current monetary threshold for notifying the FIRB of agricultural land purchase is a cumulative $15 million. This means that any purchase valued less than $15 million won’t require FIRB approval!

However, please note the “cumulative” aspect of the purchase. This means that if you have previously acquired land valued at $12 million (which didn’t require FIRB approval), and you’re looking to acquire more land valued at $5 million, you will need to notify FIRB and detail your potential and current land ownership.

Remember also that this threshold is about the value of the land, not simply the price of the property you’re considering. These two figures may not exactly align, and it is the value of the agricultural land that FIRB is concerned with.

If you’re from one of the Free Trade Agreement (FTA) countries, you may benefit from a higher, non-cumulative threshold when purchasing land for a primary production business.

• Foreign investors from Chile, New Zealand, and the United States have a monetary threshold of $1,216 million (non-cumulative)
• Foreign investors from Thailand have a monetary threshold of $50 million (non-cumulative)
• All other foreign investors will have to adhere to the $15 million cumulative threshold.

You can read more about monetary thresholds here.

Another key component for foreign investment is that the land purchase was acquired through an “open and transparent sale process” whereby Australians were also given an equal opportunity to invest in the land. This is to ensure that foreign land purchases do not interfere with land availability for domestic food security or other national interests.

An open and transparent sale process is broadly characterized by evidence that the land for sale was advertised in channels easily accessible by Australian bidders and that the land was advertised for at least 30 days within the 6 months prior to the date of foreign purchase.

 You can read more about sale processes here.

Qualifications, permits, and exemptions

It is vital that you receive FIRB approval before taking out a loan and purchasing land. You can apply for FIRB approval through the FIRB Application portal. Make sure to use this checklist to find all the documents you will need, and if you have any queries, you can check these reference guides.

After getting FIRB approval, you will also need to register your land with the Australian Taxation Office (ATO) within 30 days of sale completion. You will need to complete the Land and Water Registration form, which you can learn more about here.

If you are acquiring multiple properties, you may qualify for an exemption certificate to ease the burden of seeking regulatory approval for each separate investment. While these are offered on a case-by-case basis, exemptions are generally considered when:

• Total proposed value over a 3-year period does not exceed $100 million
• Maximum value of individual transactions does not exceed $10 million
• Regions where interests to be acquired are clearly defined

These certificates usually last for 12 months and must be renewed. You can read more about exemptions for agricultural land investments here and here.

Visas and residency

While there may be certain restrictions on Australian visa applications right now due to the COVID-19 pandemic, there are some temporary, short-stay visas that you can acquire in order to visit Australia and begin enquiries for your investment interests.

The Electronic Travel Authority is the most accessible visa option, as you just need to apply from outside of Australia and have an eligible passport to qualify for an application. You can stay for up to 3 months at a time and undertake business visitor activities. The visa lasts for 12 months.

You can also acquire the Business Innovation and Investment Provisional Visa which allows you to own and manage a business, conduct business and investment, or undertake an entrepreneurial activity in Australia. You must be nominated by an eligible government organization in order to apply.

Attaining a temporary working visa can open up streams to permanent residence visas, like the Business Innovation and Investment Provisional Visa or Business Owner Visa.

Ultimately, there are a number of work-streams visas that will allow you to invest in agricultural land and visit your property. As the situation may change, it’s important to keep up to date with any immigration-related announcements made by the Department of Home Affairs.

You can find more information about working visas here.

Additional resources

This article is intended only as a starting point for foreign investors interested in buying Australian farmland. There are businesses and consultancies that can help streamline the process and clear up any further technical or logistical concerns you might have.

Home Loan Experts is a business owned by mortgage broking firm Dargan Financial. They have a guide for foreign investors and offer a free preliminary assessment for those interested.

Klear Picture is also an advising firm that offers strategies and solutions for those interested in property development and investment in Australia. They also have a guide for foreign investment and offer a free first session.

From all of us here at Farmbuy, we wish you luck buying your dream Australian farm!