Australia will increase fees for foreigners who buy existing homes and penalize them if they leave the properties vacant while encouraging foreigners to buy new homes to increase housing supply.
The Australian government is imposing higher fees for the purchase of established or ready-to-move-in homes, as well as harsher fines for individuals who leave properties vacant. At the same time, the Government will cut application fees for foreign investment in Build to Rent projects to support the delivery of more homes across Australia.
New rules for foreigners buying Australian homes
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 (which together mean a six‑fold increase in vacancy fees for future purchases of established dwellings);
To enact the increased levies, the government plans to submit legislation in 2024.
Foreign nationals are normally prohibited from purchasing existing property, but they may do so in extremely limited circumstances, such as when they come to work or study here. If they leave the nation without becoming a permanent resident, they must sell their property.
Foreign investors will be encouraged to rent out their vacant homes by the higher vacancy fees.
In addition to these modifications, the government will guarantee that, regardless of the type of land involved, foreign investment application costs for Build to Rent projects are at the lowest possible level.
At the moment, investors in Build to Rent projects may be charged additional, distinct fees if those projects involve specific types of land, such as residential land. The application of commercial foreign investment fees to all future Build to Rent projects will apply after 14 December 2023.