Clamp down on foreign property purchasers

Clamp down on foreign property purchasers

 

 

 

The Government will be implementing a temporary ban on foreign investors from buying established homes from 1 April 2025 to 31 March 2027.

 

The measure aims to curb foreign “land banking” and ensure housing availability for Australians.

 

  From 1 April 2025, foreign investors (including temporary residents and foreign-owned companies) will be prohibited from acquiring established dwellings unless they qualify for specific exemptions.   Limited exceptions will include investments that significantly increase the housing supply or support the availability of housing supply, and those linked to the Pacific Australia Labour Mobility (PALM) scheme.  

 

Additionally, foreign investors purchasing vacant land will be required to meet development conditions, ensuring the land is used productively within a reasonable timeframe.

 

The Government has indicated that it is committed to enforcing these rules and identifying any investors who are acquiring vacant land, not developing it while prices rise, and then selling it for a profit.  

 

To support these efforts, the Australian Taxation Office (ATO) will strengthen compliance activities to enforce the ban on foreign purchases of existing homes.      

 

Any concerns?

 

If you have any concerns about the impact of the above please contact us here.  

Note: The information contained in this update has been provided as general advice only. The contents have been prepared without taking account of your personal objectives, financial situation or needs.   

You should seek advice before making any decision regarding any information, strategies or products mentioned to consider whether that is appropriate to your own objectives, financial situation and needs.