In principle, foreign persons are prohibited from acquiring an interest in an 'established dwelling' in Australia. Established dwelling refers to a dwelling on residential land that is not a new dwelling. New dwelling means a dwelling that will be, is being or has been built on residential land and that has not been previously sold as a dwelling, and either has not been previously occupied or — if the dwelling is contained in a development and the dwelling was sold by the developer of the development — has not been previously occupied for more than 12 months in total. Commercial residential premises (such as hotels) are not included in the definition of an established dwelling and are hence not subject to the general prohibition. Certain exceptions to the general prohibition exist: Foreign persons who are temporary residents may apply to purchase one established dwelling to use as their residence in Australia, and foreign-controlled companies that operate a substantial Australian business may be allowed to acquire established dwellings to provide housing for their Australian-based staff. Moreover, foreign persons may apply for authorisation to purchase an established dwelling for redevelopment, i.e. demolishing the dwelling and constructing new residential dwellings in its place.
" Dictionary of definitions
 In this Act: [...]
Australian land means agricultural land, commercial land, residential land or a mining or production tenement. [...]
commercial land means land in Australia or the seabed of the offshore area, other than land:
(a) used wholly and exclusively for a primary production business; or
(b) on which there is at least one dwelling (except commercial residential premises); or
(c) on which the number of dwellings (except commercial residential premises) that could reasonably be built is less than the number prescribed by the regulations for the purposes of subparagraph (a)(ii) of the definition of residential land in this section. [...]
development means one or more multi‑storey buildings if:
(a) the buildings will be, are being or have been built; and
(b) the buildings are or were under one development approval; and
(c) the number of independent self‑contained dwellings (other than townhouses) that the buildings contain or will contain is at least the number prescribed by the regulations.[...]
established dwelling means a dwelling (except commercial residential premises) on residential land that is not a new dwelling.[...]
foreign person means:
(a) an individual not ordinarily resident in Australia; or
(b) a corporation in which an individual not ordinarily resident in Australia, a foreign corporation or a foreign government holds a substantial interest; or
(c) a corporation in which 2 or more persons, each of whom is an individual not ordinarily resident in Australia, a foreign corporation or a foreign government, hold an aggregate substantial interest; or
(d) the trustee of a trust in which an individual not ordinarily resident in Australia, a foreign corporation or a foreign government holds a substantial interest; or
(e) the trustee of a trust in which 2 or more persons, each of whom is an individual not ordinarily resident in Australia, a foreign corporation or a foreign government, hold an aggregate substantial interest; or
(f) a foreign government; or
(g) any other person, or any other person that meets the conditions, prescribed by the regulations.[...]
land includes:
(a) a building (including a new dwelling or an established dwelling) or a part of a building; and
(b) subsoil of land.[...]
new dwelling means a dwelling (except commercial residential premises) that will be, is being or has been built on residential land and that:
(a) has not been previously sold as a dwelling; and
(b) either:
(i) has not been previously occupied; or
(ii) if the dwelling is contained in a development and the dwelling was sold by the developer of the development—has not been previously occupied for more than 12 months in total.[...]
residential land:
(a) means land in Australia if:
(i) there is at least one dwelling on the land; or
(ii) the number of dwellings that could reasonably be built on the land is less than the number prescribed by the regulations; and
(b) does not include land:
(i) used wholly and exclusively for a primary production business; or
(ii) on which the only dwellings are commercial residential premises.
residential land acquisition means a notifiable action to acquire an interest in residential land.
[...]
12 Meaning of interest in Australian land
(1) An interest in Australian land (however described) is:
(a) a legal or equitable interest in Australian land, other than:
(i) an interest under a lease or licence or in a unit in a unit trust; or
(ii) an interest in an agreement giving a right (known as a profit à prendre) to take something off another person's land, or to take something out of the soil of that land; or
(iii) an interest in an agreement involving the sharing of profits or income from the use of, or dealings in, Australian land; or
(b) an interest in a security in an entity that owns Australian land, being a security that entitles the holder to a right to occupy a dwelling of a kind known as a flat or home unit situated on the land; or
(c) an interest as lessee or licensee in a lease or licence giving rights to occupy Australian land if the term of the lease or licence (including any extension or renewal) is reasonably likely, at the time the interest is acquired, to exceed 5 years; or
(d) an interest in an agreement giving a right of a kind mentioned in subparagraph (a)(ii) if the term of the agreement (including any extension or renewal) is reasonably likely, at the time the interest in the agreement is acquired, to exceed 5 years; or
(e) an interest in an agreement involving the sharing of profits or income from the use of, or dealings in, Australian land if the term of the agreement (including any extension or renewal) is reasonably likely, at the time the interest in the agreement is acquired, to exceed 5 years; or
(f) an interest in a share in an Australian land corporation or agricultural land corporation; or
(g) an interest in a unit in an Australian land trust or agricultural land trust; or
(h) if the trustee of an Australian land trust or agricultural land trust is a corporation—an interest in a share in that corporation.
(2) An interest is an interest in Australian land even if it is the only interest that exists in the land or other thing concerned.
(3) A person acquires an interest in Australian land even if:
(a) the person has previously acquired an interest in Australian land; or
(b) the interest is an increase in the amount of an existing interest of the person in Australian land.
[...]
43 Meaning of significant action—land
An action is a significant action if:
(a) the action is for a foreign person to acquire an interest in Australian land; and
(b) the threshold test is met in relation to the land (see Subdivision B of Division 4).
[...]
45 Actions that are not significant actions—exemption certificates
(1) Despite this Division, an action is not a significant action if:
(a) the action is a foreign person acquiring an interest in a new dwelling that will be, is being or has been built on another interest (the development interest) in Australian land; and
(b) the acquisition was from a person who was specified in an exemption certificate in force under section 57; and
(c) the development interest was specified in the certificate; and
(d) the specified person provided the foreign person with a copy of that certificate before the foreign person acquired the interest; and
(e) either:
(i) the conditions (if any) specified in the certificate were met; or
(ii) the foreign person is not, at the time of the action, aware that one or more of the conditions specified in the certificate have not been met.
[...]
47 Meaning of notifiable action—general
(1) An action is a notifiable action if the conditions in this section are met.
First condition—kinds of action
(2) The first condition is that the action is any of the following:[...]
(c) to acquire an interest in Australian land.
Second condition—threshold
(3) The second condition is that the threshold test is met in relation to the entity, business or land (see Subdivision B of Division 4).[...]
Last condition—action taken by a foreign person
(5) The last condition (whether paragraph (2)(a), (b) or (c) applies) is that the action is or is to be taken by a foreign person.
[...]
49 Actions that are not notifiable actions—exemption certificates
(1) Despite this Division, an action is not a notifiable action if:
(a) the action is a foreign person acquiring an interest in Australian land; and
(b) the action would not be a significant action under section 45 (actions that are not significant actions—exemption certificates).
(2) The regulations may provide, in relation to exemption certificates in force under regulations made for the purposes of section 63, that an action of a specified kind is not a notifiable action.
[...]
52 The threshold test for land
Land without threshold value
(1) The threshold test is met in relation to land if the land is of a kind that is prescribed by the regulations for the purposes of this subsection.[...]
Other land where value of interest is above threshold value
(3) The threshold test is met in relation to land if both of the following apply:
(a) the land is not land prescribed for the purposes of subsection (1) or agricultural land;
(b) the value of the interest in the land is more than the value prescribed for the purposes of this paragraph.
[...]
57 Exemption certificates for new dwellings
(1) A person may apply for a certificate under this section if:
(a) the person or any other person proposes to acquire or has acquired an interest in Australian land; and
(b) the person or other person proposes to dispose of new dwellings to foreign persons that will be, are being or have been built on that land.
(2) The Treasurer may give a certificate if the Treasurer is satisfied that the disposal of the new dwellings to foreign persons is not contrary to the national interest.
[...]
67 Order prohibiting proposed significant actions
(1) The Treasurer may, by notifiable instrument, make an order under subsection (2) if the Treasurer is satisfied that:
(a) a significant action is proposed to be taken; and
(b) taking the significant action would be contrary to the national interest.
(2) The Treasurer may make an order in accordance with the following table.
Powers of Treasurer to prohibit proposed significant actions
Item If the significant action is ... the Treasurer may make an order prohibiting [...]
8 to acquire an interest in Australian land the proposed acquisition.
[...]
81 Compulsory notice of notifiable actions
(1) A foreign person who proposes to take a notifiable action must give a notice to the Treasurer before taking the action.
(2) If a person takes an action by entering an agreement, the notice must deal with each notifiable action covered by the agreement.
[...]
95 Acquisition of interests in established dwellings
Temporary residents
(1) A foreign person who is a temporary resident must not hold an interest in more than one established dwelling at the same time.[...]
Other foreign persons
(4) A foreign person who is not a temporary resident must not acquire an interest in an established dwelling.
General exceptions
(5) Subsections (1), (4) and (8) do not apply in relation to an interest if the interest was, or was of a kind, specified in an exemption certificate or a no objection notification.[...]" (Foreign Acquisitions and Takeovers Act 1975 (Act No. 92 of 1975), last amended by Australia's Foreign Relations (State and Territory Arrangements) (Consequential Amendments) Act 2020 on 10 December 2020, Sections 4, 12, 43, 45, 47, 49, 52, 57, 67, 81 and 95)
-----------------------
"5 Definitions
In this instrument: [...]
near‑new dwelling interest means an interest in a dwelling, if all of the following apply:
(a) the dwelling is contained in a development;
(b) an agreement to sell the interest in the dwelling had become binding;
(c) that agreement did not result in the transfer of title to the interest, and is no longer in force;
(d) the interest is to be sold under another agreement;
(e) the interest would be an interest in a new dwelling, to be acquired under the other agreement, if there were no agreements to which paragraphs (b) and (c) applied.[...]
vacant:
(a) land is vacant if there is no substantive permanent building on the land that can be lawfully occupied by persons, goods or livestock; but
(b) despite paragraph (a), land is not vacant if a wind or solar power station is located on the surface of the land.
[...]
15 Number of independent self‑contained dwellings in a development
For paragraph (c) of the definition of development in section 4 of the Act, the number of independent self‑contained dwellings is 50.
[...]
19 Number of future dwellings on residential land
For subparagraph (a)(ii) of the definition of residential land in section 4 of the Act, the number of dwellings is 10.
[...]
Division 3—Exemptions for certain actions from being significant and notifiable actions
28 Application of this Division
This Division applies to the provisions of the Act, other than:
(a) the definition of foreign person in section 4 of the Act; and
(b) any other provision of the Act to the extent that it relates to that definition.
The provisions of the Act that this Division applies to are the excluded provisions.
[...]
31 Australian businesses carried on by or land acquired from government
(1) The excluded provisions do not (subject to subsection (2)) apply in relation to an Australian business that is carried on (whether alone or together with one or more other persons) by, or an acquisition of an interest in Australian land from, any of the following persons:
(a) the Commonwealth, a State, a Territory or a local governing body;
(b) an entity wholly owned by the Commonwealth, a State, a Territory or a local governing body.
(2) However, subsection (1) does not apply in relation to:
[...]
(b) an acquisition of an interest in Australian land if the interest is, or includes, an interest in any of the following infrastructure:
(i) public infrastructure, except in relation to public roads;
(ii) infrastructure for existing or proposed roads, existing or proposed railways, or existing or proposed inter‑modal transfer facilities, within the National Land Transport Network (within the meaning of the National Land Transport Act 2014);
(iii) infrastructure for existing or proposed roads, existing or proposed railways, or existing or proposed inter‑modal transfer facilities, that are designated under a law of a State or Territory as either significant or controlled by the State or Territory;
(iv) the infrastructure (or part of the infrastructure) of a telecommunications network;
(v) a nuclear facility; or
(c) an Australian business that holds an interest in Australian land to which paragraph (b) applies.
[...]
38 Acquisitions of interests in residential land
(1) The excluded provisions do not apply in relation to an acquisition of an interest in residential land by a foreign person if a subsection of this section applies in relation to the acquisition.
Acquisitions by persons with connection to Australia
(2) The foreign person meets any of the following conditions:
(a) the foreign person is, at the time of acquisition, the holder of a permanent visa (within the meaning of the Migration Act 1958);
(b) the foreign person is, at the time of acquisition, the holder of a special category visa (within the meaning of that Act);
(c) if the foreign person had entered Australia lawfully immediately before the acquisition, he or she would have been entitled to the grant, on presentation of a passport, of a special category visa (within the meaning of that Act);
(d) the foreign person is an Australian corporation and would not be a foreign person if interests held directly in it by any one or more of the following persons were disregarded:
(i) a person to whom any of paragraphs (a), (b), (c) and (e) applies;
(ii) a person to whom any of paragraphs 35(1)(a) to (c) applies;
(iii) a person covered by a previous application of this paragraph;
(e) the foreign person is the trustee of a resident trust at the time of the acquisition, and would not be a foreign person if interests held directly in it by any one or more of the following persons were disregarded:
(i) a person to whom any of paragraphs (a) to (d) of this subsection applies;
(ii) a person to whom any of paragraphs 35(1)(a) to (c) applies;
(iii) a person covered by a previous application of this paragraph.
Acquisitions of interests in residential land by spouses and de facto partners of Australian citizens etc.
(3) Both of the following apply:
(a) the person is the spouse or de facto partner (within the meaning of the Acts Interpretation Act 1901) of:
(i) a person who is, at the time of acquisition, an Australian citizen; or
(ii) a person who is, at the time of acquisition, the holder of a permanent visa (within the meaning of the Migration Act 1958); or
(iii) a person who is, at the time of acquisition, the holder of a special category visa (within the meaning of that Act); or
(iv) a person who, if the person had entered Australia lawfully immediately before the acquisition, would have been entitled to the grant, on presentation of a passport, of a special category visa (within the meaning of that Act);
(b) the interest is held by the person and his or her spouse or partner as joint tenants.
Acquisitions of interests in residential timeshare schemes
(4) Both of the following apply:
(a) the acquisition is of an interest in a timeshare scheme that relates to residential land;
(b) the foreign person's total entitlement, alone or together with one or more associates, under the timeshare scheme to access the land is no more than 4 weeks in any year.
Certain acquisition of interests in residential land used as retirement villages
(6) All of the following apply:
(a) the foreign person has an existing interest in the land;
(b) the land is used for a retirement village that the foreign person owns;
(c) the foreign person increases their existing interest in the land by acquiring an interest in a dwelling contained in the retirement village.
43A Exemption certificates for residential land (near‑new dwelling interests)
(1) A person may apply for a certificate under this section (a residential land (near‑new dwelling interests) certificate) if:
(a) the person has acquired, or will acquire, an interest in Australian land; and
(b) the person has built, or proposes to build, new dwellings on that land; and
(c) some or all of the interests in those dwellings are, or may become, near‑new dwelling interests; and
(d) the person proposes to dispose of the near‑new dwelling interests to foreign persons.
(2) The Treasurer may give a certificate if the Treasurer is satisfied that the disposal of the near‑new dwelling interests to foreign persons is not contrary to the national interest.
[...]
43B Exemption certificates for residential land (other than established dwellings)
(1) A foreign person may apply for a certificate under this section (a residential land (other than established dwellings) certificate) if the foreign person or any other foreign person proposes to acquire only one of the following:
(a) an interest in a new dwelling;
(b) a near‑new dwelling interest;
(c) an interest in vacant residential land.
(2) The Treasurer may give a certificate if the Treasurer is satisfied that the acquisition of those kinds of interests by that foreign person is not contrary to the national interest.
[...]
52 Land
Land without threshold value
(1) For the purposes of subsection 52(1) of the Act, all land other than the following is prescribed:
(a) agricultural land;
(b) commercial land that is not vacant. [...]
Interests in commercial land that is not vacant
(3) The following table prescribes a value for the purposes of paragraph 52(3)(b) of the Act for an interest in commercial land that is not vacant.
[see legal source for table] [...]" (Foreign Acquisitions and Takeovers Regulation 2015 (SLI 2015 No. 217), last amended by Foreign Acquisitions and Takeovers Amendment (Commercial Land Lease Threshold Test) Regulations 2020, Sections 5, 15, 19, 28, 31, 38, 43A, 43B and 52)
Foreign Acquisitions and Takeovers Act 1975 (Act No. 92 of 1975), last amended by Australia's Foreign Relations (State and Territory Arrangements) (Consequential Amendments) Act 2020 on 10 December 2020, Sections 4, 12, 43, 45, 47, 49, 52, 57, 67, 81 and 95
Foreign Acquisitions and Takeovers Regulation 2015 (SLI 2015 No. 217), last amended by  Foreign Acquisitions and Takeovers Amendment (Commercial Land Lease Threshold Test) Regulations 2020, Sections 5, 15, 19, 28, 31, 38, 43A, 43B and 52
[<a href="https://www.legislation.gov.au/Details/C2020C00397">Act</a>],[<a href="https://www.legislation.gov.au/Details/F2020C00820">Reg</a>],[<a href="https://firb.gov.au/sites/firb.gov.au/files/2020-12/archived_GN01-FIRB_0.pdf">Guidance</a>],[<a href="https://firb.gov.au/sites/firb.gov.au/files/inline-files/2020-FIP-cv.pdf">Policy</a>]