Anthony Albanese has launched a crackdown on foreigners buying property in Australia after record high immigration caused a housing shortage.
Foreigners may only purchase established property in Australia if they are residents and can prove that they live, work or study in Australia.
Labor introduced legislation on Wednesday aimed at boosting housing supply after a record number of 518,000 migrants moved to Australia in the last financial year.
This caused Australia’s rental property vacancy rate to fall to a record low of one per cent in November last year, as an influx of international students competed with locals for a place to live.
Anthony Albanese has launched a crackdown on foreigners buying property in Australia after record high immigration caused a housing shortage (pictured are potential buyers of a unit in Chatswood on Sydney’s lower north shore)
The Foreign Takeovers and Takeover Compensation Amendment Act 2024 will triple compensation for foreigners purchasing established homes and double vacancy compensation for foreign-owned properties purchased since May 9, 2017.
Treasurer Jim Chalmers and Housing Minister Julie Collins said the changes are aimed at ensuring foreign investment is in line with the government’s plan to boost affordable housing.
“These changes further encourage foreigners to buy new property instead and help ensure that those who do get approval adhere to the rules,” they said.
Dr. Chalmers and Ms Collins argued the legislation would encourage foreigners buying property in Australia to put their money into new homes and increase housing stock.
‘The higher fees for existing homes will encourage foreign buyers to invest in new housing projects,” they said.
“This will help create additional housing stock, jobs in the construction sector and support economic growth.
‘The higher vacancy fees will encourage foreign investors to make their unused properties available to tenants.’
International students can buy property in Australia to live in, but they must sell within six months of graduating and leaving Australia, if they have not become a permanent resident (pictured are students from the University of New South Wales)
International students can buy property in Australia to live in, but they must sell within six months of graduating and leaving Australia, if they have not become a permanent resident.
Labor law did not provide for increased penalties for international students who failed to sell within six months – something One Nation leader Pauline Hanson had pushed for.
Temporary residents, foreign nationals living in Australia and short-term visa holders are allowed to purchase an investment property or a home to live in – provided they have received approval from the Foreign Investment Review Board.