The Treasurer has issued a media release outlining higher fees for the purchase of established homes, increased penalties for those that leave properties vacant and strengthened compliance activity relating to foreign investment in residential property. The relevant legislation will be introduced “next year”.

The changes include:

• a tripling of foreign investment fees for the purchase of established homes;
• a doubling of vacancy fees for all foreign-owned dwellings purchased since 9 May 2017.

While foreign nationals are generally barred from buying existing property, they can do so when they come to live here for work or study. When they leave the country, they are required to sell the property if they have not become a permanent resident. The Treasurer also announced an enhancement to the ATO’s compliance regime to ensure that foreign nationals comply with the requirement to sell their property.

In addition, the Government will cut application fees for foreign investment in Build to Rent projects. The application of commercial foreign investment fees to all future Build to Rent projects will apply after 14 December 2023.