New fee amounts for residential real estate
The government has proposed changes to the foreign investment framework as announced in December 2023, as part of the Mid-Year Economic and Fiscal Outlook.
The proposed amendments have passed through parliament, and on Monday 8 April 2024 the Governor General gave the legislation Royal Assent.
While our systems are updated, foreign investors may continue to see the previous fee amounts. These clients will be contacted after applying to manually organise payment for any additional amounts owed.
The statutory timeframe for deciding on an application will not take effect until the full fee is received.
The increase to application fees for established dwellings will also apply to Exemption Certificate applications that include established dwellings. The fee to apply for an Exemption Certificate that does not include an established dwelling will not increase. We will be undertaking compliance checks to ensure that people continue to buy only the property type that they have applied for.
Compliance approach with residential real estate rules
The ATO’s foreign investment in residential assets compliance approach will ensure that foreign persons acquiring residential real estate are identified, and that compliance action is taken against those who contravene the rules.
The program will ensure breaches are penalised and place the onus on the client to remediate a breach.
We are increasing our focus on foreign investors purchasing established dwellings, including where the foreign person has purchased without approval or does not meet conditions of approval.
Foreign investment data sources
How the ATO uses data for regulating foreign investment in residential real estate
The ATO has sophisticated data management and matching programs which are designed to maintain community confidence in the integrity of the foreign investment framework.
We receive data from several third parties that assists in the administration of the Register of Foreign Ownership of Australian Assets and supports our compliance programs.
Some of our key data sources include:
- Australian States and Territories Real Property Transfer data
- Department of Home Affairs
- Foreign investment proposal data
- Australian Electoral Commission
- ATO Income Tax Return
- Australian Securities and Investments Commission.