Ordinarily resident in Australia — what the 200-day rule means when you buy property

Ordinarily resident is the test the Australian Taxation Office (ATO) and the Foreign Investment Review Board (FIRB) use to decide whether you are treated as a local buyer or a foreign person when you buy residential property in Australia — and it generally requires you to have been physically in Australia for at least 200 days during the 365 days before your contract date, with a lawful right to remain. Get the test wrong and the consequences are real: FIRB approval requirements, foreign-buyer stamp duty surcharges, stricter home loan terms, and during the current ban a complete block on buying established dwellings.

Key takeaways

• "Ordinarily resident" generally means at least 200 days in Australia in the 365 days before the contract date, plus a right to remain that is not time-limited under immigration law.
• Australian citizens are never foreign persons, regardless of where they live.
• Permanent residents (PR) living in Australia who pass the 200-day test are treated as locals for FIRB purposes.
• PR living overseas who fail the 200-day test, and most temporary residents, can still be treated as foreign persons.
• Foreign persons face FIRB approval, foreign-buyer stamp duty surcharges (for example, 8% in Victoria and New South Wales), and a current ban on buying established dwellings until 31 March 2027.
• Movement records from the Department of Home Affairs are the standard way to prove your days in Australia.

This is general information based on rules at time of writing — not legal, migration, or tax advice. Always check the current FIRB and state rules, and speak with a registered conveyancer or migration adviser, before you sign a contract.

What "ordinarily resident" actually means

The full ATO definition has two limbs that work together. To be ordinarily resident in Australia for foreign investment purposes you generally need both:

1. Physical presence: at least 200 days in Australia within the 365 days immediately before the relevant date (typically the contract date for a property purchase), and
2. No time-limit on staying: your continued presence in Australia is not subject to any limitation imposed by Australian law. In practice, this means an Australian citizen, or a permanent resident whose visa has no expiry date.

If either limb fails, you generally are not ordinarily resident — and the FIRB rules treat you the same as someone living overseas. The 200 days do not need to be continuous; weekends, public holidays, and short overseas trips all count toward presence as long as you are physically in Australia at midnight Australian time on the day in question.

The official ATO explanation is here: Are you a foreign person buying property in Australia?

Why the test matters when you buy a home

The "ordinarily resident" test sits underneath several rules that apply to property purchases in Australia. If you fail the test you can face all of the following at once.

1. FIRB approval

Foreign persons must apply to FIRB before they can acquire residential property in Australia, and pay an application fee that scales with property value (often $14,700 to $52,500+ for a typical residential purchase, with much higher fees for properties above $1 million and for established dwellings). Approval is not automatic and conditions usually apply.

2. The 2025–2027 established-dwelling ban

Between 1 April 2025 and 31 March 2027 the federal government has applied a temporary two-year ban on foreign persons (including most temporary residents) buying established (existing) dwellings. Limited exceptions apply for build-to-rent and certain workforce housing arrangements. Foreign persons can still buy new dwellings and vacant land for genuine development, with FIRB approval.

3. Foreign-buyer stamp duty surcharges

Most states and territories charge an additional foreign purchaser duty on top of normal stamp duty:

• Victoria (FPAD): 8% additional duty on residential property
• New South Wales: 8% surcharge purchaser duty
• Queensland: 7%–8% additional foreign acquirer duty
• Western Australia: 7% foreign buyer duty
• South Australia, Tasmania, NT, ACT: various surcharges (always check the current state revenue office page)

On a $800,000 purchase in Victoria, an 8% foreign surcharge is $64,000 extra — completely separate from base stamp duty. See stamp duty Australia: what buyers often miss for how the base duty itself is calculated.

4. Lender rules

Banks and non-banks have their own foreign-person policies that often go further than FIRB:

• Many lenders cap LVR at 60%–70% (instead of the usual 80%–95%) for non-residents and certain temporary residents.
• Some lenders require all income evidence to be in English and converted to AUD with documentary evidence.
• A handful of lenders only lend to Australian citizens or PRs ordinarily resident in Australia.
• Many lenders ask to see your FIRB approval letter as a condition of formal approval.

This is why two buyers with identical incomes and deposits can get very different outcomes — your residency status quietly shapes how lenders price and assess the loan. See how borrowing capacity really works in 2026 for the broader serviceability picture.

Who is usually fine without FIRB?

You generally do not need FIRB approval to buy residential property in Australia if you are:

• An Australian citizen — including dual citizens and citizens permanently living overseas. Citizenship is the simplest answer.
• A permanent resident who is ordinarily resident in Australia (passes the 200-day test and has a non-time-limited right to remain).
• A New Zealand citizen holding a Special Category Visa (subclass 444) who is ordinarily resident in Australia. Most NZ citizens living in Australia fall into this group, but the 200-day test still applies if you have been overseas for an extended period.

In these cases you simply buy as a domestic purchaser, pay the standard stamp duty, and access whatever home loan and grant programs you would otherwise qualify for.

Who may still be treated as a foreign person?

The grey area sits with these groups — and this is where buyers most often get caught.

• Permanent residents living overseas, who haven't been in Australia for at least 200 days in the past year. PR status alone is not enough; you need to pass the residence test.
• Temporary residents on most visas — including subclass 482 (skilled work), 485 (graduate), 500 (student), 491/494 (regional), and 309/820 (partner) holders. These are time-limited visas, so even if you live in Australia full-time you fail the "no time-limit" limb of the test.
• Bridging visa holders, who are typically treated as foreign persons unless their substantive visa qualifies them as a permanent resident.
• Foreign nationals living overseas with no Australian visa — clearly foreign persons.

If any of these applies to you, plan for a FIRB application, foreign-buyer surcharges, and a more limited lender panel before you start shopping for property.

What to consider before you buy

Walk through these six items before you sign anything.

Your status, in writing

Run a VEVO check (Visa Entitlement Verification Online) to print proof of your current visa, expiry, and conditions. This is what your lawyer and lender will ask for.

Your days in Australia

Count how many days you were physically in Australia in the 365 days before today. If you are anywhere near 200, request a movement records report from Home Affairs to be precise — banks, FIRB, and state revenue offices want a documented count, not your best estimate.

Contract date timing

The "ordinarily resident" test is measured at the contract date, not settlement. If you are about to come back from a long trip overseas, signing a contract a few weeks too early can flip your status from local to foreign. Plan the timing.

Lender choice and LVR

Before you fall in love with a property, work out which lenders will actually lend to you and at what LVR. A foreign person buying in Victoria with a 70% LVR cap and 8% FPAD often needs roughly 35%–40% of the price in cash once FIRB fees, surcharge duty, and base costs are added.

State grants and concessions

Most state grants and concessions go further than the FIRB test and require Australian citizenship or PR, not just ordinary residence. For example:

• First Home Owner Grant (Victoria): at least one applicant must be an Australian citizen or PR, and at least one applicant must occupy the home as their principal place of residence (PPR) for at least 12 months, beginning within 12 months of settlement or completion of construction.
• First home stamp duty concessions in most states: similar PPR rules, and similar citizenship/PR conditions in many cases.
• First Home Guarantee (federal): citizens and PRs who satisfy the scheme rules — see First Home Guarantee scheme — 5% deposit explained.

Loan and document preparation

Foreign and non-resident applications need cleaner documentation than local applications: explained funds-to-complete, translated income statements, and clear evidence of regular Australian-side activity (rent, utilities, salary). See genuine savings explained and what is home loan pre-approval in Australia? for how lenders look at this.

Practical checklist before you sign

A simple step-by-step you can run today:

1. Confirm visa status. Run a VEVO check and screenshot the result.
2. Count your days. Request a Home Affairs movement records report if you have travelled in the past 12 months.
3. Decide on contract timing. If you are close to the 200-day mark, talk to your conveyancer about cooling-off periods or delaying the contract.
4. Check FIRB. If you are a foreign person, use the FIRB residential application portal and confirm fees and processing times. Established dwellings are generally not available during the 2025–2027 ban.
5. Check state surcharges. Visit your state revenue office (SRO) page for foreign purchaser duty and any current concessions.
6. Talk to a broker. Confirm which lenders will lend to your visa class, the LVR cap, and any extra documents required. Build a funds-to-complete summary that includes FIRB fee, surcharge duty, and lender fees.
7. Confirm grant eligibility. Don't assume you qualify for First Home Owner Grant or first home buyer stamp duty concessions until your conveyancer confirms in writing.
8. Get conditional approval before signing. Especially in states with short cooling-off periods (Victoria's three business days, for example).

Next steps

If you are an Australian citizen or a PR who has clearly been in Australia all year, the test is straightforward and you can buy as a domestic purchaser. If you are anywhere in the grey area — PR living overseas, temporary resident, or recent returnee — the single highest-value step is to confirm your status in writing before you start property hunting:

• Order a Home Affairs international movement records report.
• Run a VEVO check and save the result.
• Get a mortgage broker to map out which lenders will work with your visa class and at what LVR. Our home loans, first home buyers, and investment loans pages walk through how we structure these conversations.
• If you may be a foreign person, get a written FIRB advice from your lawyer or migration adviser, and price the application fee and surcharges into your budget.
• Send a short enquiry and we'll review your visa status, days-in-Australia count, and lender options together — no obligation.

Getting the residency test right at the start saves enormous pain later, because the difference between a domestic purchaser and a foreign person on the same $800k property in Victoria can easily be $60,000+ in extra duty, fees, and FIRB charges — completely separate from the size of your deposit.

A note on financial advice

This article is general information prepared by Bishnu Adhikari at Azure Home Loans, a Box Hill (Victoria) mortgage broker, based on FIRB, ATO, and state revenue office rules at the time of writing. It is not legal, migration, tax, or personal financial advice. FIRB rules, foreign purchaser surcharges, and lender policies change regularly — always confirm current rules on the ATO website, with your registered conveyancer, and with a qualified migration adviser before signing a contract or paying any deposit.