Higher foreign investment fees for housing
The Government intends to introduce legislation next year to implement the new fees.
The Albanese Government will adjust the foreign investment framework to help boost Australia’s housing stock and provide more homes for Australians.
Higher fees for the purchase of established homes, increased penalties for those that leave properties vacant, and strengthened compliance activity will help ensure foreign investment in residential property is in our national interest.
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.
We welcome foreign investment because it plays a crucial role in our nation’s economic success. These adjustments are all about making sure foreign investment aligns with the Government’s agenda to lift the nation’s supply of affordable housing.
The changes announced today include:
a tripling of foreign investment fees for the purchase of established homes (i.e: a residential house valued at $1-$2 million will now incur FIRB fees of $84,600 indexed as opposed to the current $28,200)
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);
enhancing the ATO’s compliance regime to ensure foreign investors comply with the rules, including selling their residence when required.
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