Changes to OTP Developer FIRB Applications for blanket pre-approval
An article was recently released from Maddocks Canberra Lawyer in relation to blanket approvals of FIRB for off the plan developments of 100 lots or more.
As has been past practice, developers have been able to apply for blanket pre approval of FIRB for foreign investors and did not have to pay an application fee. This is now set to change from the 1 December 2015.
As reported by, David Hartney and Nick Holuigue, from Maddocks…
“Under the Proposed New Regime, a developer who wishes to apply for an Exemption Certificate will need to pay the following fees:
1. $25,000 upon application
2. Every six months, for each lot sold to a foreign purchaser during that period, a fee of:
a. $5,000 where the purchase price for each lot sold is under $1,000,000
b. where the purchase price of each lot is over $1,000,000, the fee is increased by $10,000 for every million or part thereof.
To put this into context, based on the current Proposed New Regime, a developer who obtains an Exemption Certificate after 1 December 2015 and sells 200 lots (assuming under $1,000,000 purchase price per lot) to foreign purchasers will have to pay $1,025,000 to FIRB.”
The full article can be found here https://www.maddocks.com.au/reading-room/foreign-sales-firb-fee-hit-residential-developers/