As stated in the media alert the report makes 12
recommendations, including the following:
Retaining the current framework applying to foreign purchases
of Australian housing to encourage foreign investment in new
dwellings and increase housing supply;
Improving the internal processes at Treasury and the Foreign
Investment Review Board (FIRB) and removing barriers to enable
adequate audit, compliance, and enforcement of the foreign
Applying a modest administrative fee to the current screening
of foreign purchases of residential real estate to better resource
Introduction of a civil penalty regime for breaches of the
foreign investment framework;
Requiring that penalties now apply to all third parties who
knowingly assist a foreign investor to breach the framework;
Requiring that any capital gains from the sale of an illegally
held property be forfeited to the Government;
Requiring that properties that have a certificate that allows
sales off-the-plan overseas, must be marketed in Australia for the
same period of time;
Amending the Migration Act so that the Department of
Immigration must inform FIRB when a temporary resident departs
Australia upon expiry of their visa; and
Establishing a national register of land title transfers that
records the citizenship and residency status of all purchasers of
residential real estate.
A full copy of the report can be accessed here (
What the Government will do about implementing the
recommendations in the report remains to be seen. The Government
will no doubt be sensitive to how any tightening of requirements
will be perceived overseas. It has been suggested that the release
date of the report was deferred until after G20 meetings had
concluded, which if correct, would be a sign of the degree of
sensitivity on this issue.
On the home front we query whether the recommendations of the
report will go far enough to allay the concerns of the Australian
public about the extent of foreign investment in domestic real
estate and the difficulties that creates for citizens in being able
to afford to buy a home.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The Council announced planning policies to encourage more inner suburban retirement village and aged care development.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).