Foreign investors will be slugged with higher fees and steeper penalties for buying existing homes and leaving them empty as the government aims to address housing affordability.
The federal government on Sunday announced new rules tripling taxes for foreigners who buy existing houses in Australia and a doubling in fees for those who leave dwellings vacant.
The rules would encourage foreign buyers to invest in new housing developments and encourage them to make their unused properties available to renters, Treasurer Jim Chalmers and Housing Minister Julie Collins said.
“We welcome foreign investment because it plays a crucial role in our nation’s economic success,” the ministers said.
“These adjustments are all about making sure foreign investment aligns with the government’s agenda to lift the nation’s supply of affordable housing.”
Foreign nationals are usually barred from buying existing property but can do so in limited circumstances such as working or studying.
They are required to sell the property once they leave the country if they have not become a permanent resident.
The government will, at the same time, encourage foreigners to invest in build-to-rent projects by cutting application fee costs to the lowest commercial level.
The change will standardise fees paid by foreigners investing in rental projects across different land zones.
“Currently build-to-rent investors can be subject to different, higher fees if their projects involve particular kinds of land, like residential land,” the ministers said.
The rules to implement the new fees are set to be introduced into parliament next year.
