The federal government in Australia has announced new rules that will increase taxes for foreign investors purchasing existing homes and leaving them vacant. These changes triple taxes for foreigners who buy existing houses and double fees for those who leave dwellings unoccupied. It is estimated that these changes will raise about half a billion dollars for the government.
The new rules aim to encourage foreign buyers to invest in new housing developments and make their unused properties available to renters. Treasurer Jim Chalmers stated that the goal is to boost housing stock and expand the rental market by tightening existing regulations. Additionally, foreign nationals are generally not allowed to purchase existing property in Australia, except in limited circumstances such as working or studying. They are required to sell the property if they leave the country and have not become permanent residents.
To further incentivize foreign investment in rental projects, the government will reduce application fees for build-to-rent projects to the lowest commercial level. This will standardize fees across different land zones and provide more consistent costs for foreign investors. The changes will be introduced in parliament next year, with the aim of boosting compliance and increasing the availability of housing in Australia.