On 10 December 2023, the government announced changes to the foreign investment framework to increase Australia's housing stock and provide more homes for Australians.
These included:
- tripling foreign investment fees for the purchase of established homes
- doubling 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.
The changes to foreign investment fees and vacancy fees are now law.
The tripling of foreign investment fees for the purchase of established dwellings will take effect from 9 April 2024.
The doubling of vacancy fees will apply to all foreign-owned dwellings purchased since 9 May 2017 and will take effect for all vacancy years starting on or after 9 April 2024.
Additionally, from 14 December 2023 the commercial fee schedule applies to eligible build to rent projects. This measure is implemented by Treasury.
For more information see:
- Foreign investment in AustraliaExternal Link
- Foreign Acquisitions and Takeovers Fees Imposition Act 2015External Link
- Foreign Acquisitions and Takeovers Fees Imposition Amendment Act 2024External Link
- New foreign investment laws to boost housing supplyExternal Link – joint media release – Treasurer and Minister for Housing and Homelessness and Small Business.
- Higher foreign investment fees for housingExternal Link – joint media release – Treasurer and Minister for Housing and Homelessness and Small Business.