What counts as agricultural land

The Foreign Acquisitions and Takeovers Act 1975 defines agricultural land as land in Australia that is used, or could reasonably be used, for a primary production business, including land only partly used that way. A farm dam or a stream that sometimes covers part of the land is included.

Some land is carved out when it is not used wholly or mainly for primary production: for example land of one hectare or less, land used mainly for a mine or for a wind or solar power station, land set aside by law for conservation, and land in an approved industrial estate.

Guidance Note 3 sets out what bears on whether land “could reasonably be used” for farming: its zoning, its history of use (a long drought or a recent bushfire does not by itself take land out of farming), and its characteristics, such as climate, soil, size, water and how remote it is from transport and services.

Approval and registration, side by side

The two obligations are run by different bodies, happen at different times and have different triggers.

Approval before buying

Whose decision
The Treasurer, applied for through the Foreign Investment Portal, with a fee on every application.
When
Before the purchase. A contract may be signed if it is conditional on approval.
Most private investors
A cumulative $15 million threshold, counting the new price and the value of agricultural land already held with associates. Unlike most thresholds it is not indexed each year.
Other investors
Foreign government investors: $0, so every purchase. Private investors from Chile, New Zealand and the United States: $1,498 million, not cumulative, from 1 January 2026. Private investors from Thailand buying land used wholly and exclusively for primary production: $50 million, not cumulative.
Any investor
National security land needs approval at any value.

Registration after buying

Whose register
The ATO’s: the Commissioner of Taxation acts as Registrar of the Register of Foreign Ownership of Australian Assets.
When
Within 30 days of settlement, or of becoming a foreign person while holding agricultural land. The ATO can grant more time case by case.
Threshold
None: registration is needed regardless of value, and it is free.
Leases
A lease of agricultural land is registered too if its term, counting extensions or renewals, is reasonably likely to exceed five years.
Afterwards
Details are updated if the owner stops being a foreign person, sells, partly sells, or the land’s use changes. Breaches can bring an infringement notice or civil penalties.

Water counts as well. A foreign person who acquires water entitlements or water rights must register them on the same register. When a foreign person buys or sells agricultural land, the transaction goes on the register whether or not it needed approval, and if the original investment had approval or an exemption certificate, the foreign investment authorities must be told as well.

Why the sale process matters to a seller

The rule that most touches a farm’s seller is the Australian opportunities requirement. When a foreign person seeks approval to buy freehold agricultural land for farming or for housing development, the Treasurer considers whether Australians had an equal chance to buy it. Generally, approval will not be given if the land was not marketed through an open and transparent process.

Guidance Note 3 sets out a process that would be unlikely to raise concerns:

  • Public marketing through channels Australian bidders could reasonably reach, such as a widely used real estate listing website, a large regional or national newspaper, or the ASX.
  • At least 30 days of marketing within the six months before the agreement date.
  • An equal chance to bid while the land was still available.

Other processes can be enough if the investor shows Australians had an equivalent chance to take part. One of the note’s own examples: a farm marketed for 90 days, then withdrawn, and approached by a foreign buyer five months after it was first advertised, is likely to satisfy the requirement, because the marketing fell within the last six months.

What the register makes public

The Registrar reports to the Treasurer on the register and publishes statistics, such as the share of Australian agricultural land held by foreign investors, by state and by country of ownership, and how the land is used. Only aggregate figures are published: privacy rules prevent anything that could identify a person or an entity. The published figures do not name owners.

Records and penalties

Foreign persons must also keep records about certain foreign investment actions for up to five years. Breaches of the foreign investment law can bring significant penalties, including infringement notices and civil and criminal penalties.

Where to check

Guidance Note 3 on agricultural land, the monetary thresholds page and the ATO’s registration page are linked below. A farm’s land tax position under South Australian law is a separate question, in paddock 1, and how its titles are searched is in paddock 5.