Foreign investors will be banned from buying established homes in Australia for at least two years.
Federal Treasurer Jim Chalmers said foreign purchases of established dwellings from April 1 until March 31, 2027 would be banned, with a review to determine whether it should be extended beyond that point.
Treasurer Chalmers said, until now, foreign investors had generally been barred from buying existing property except in limited circumstances, such as when they came to live here for work or study.
“From April 1, foreign investors, including temporary residents and foreign owned companies, will no longer be able to purchase an established dwelling in Australia while the ban is in place. unless an exception applies.”
He said the limited exceptions would include investments that significantly increased housing supply or supported the availability of housing supply, and for the Pacific Australia Labour Mobility (PALM) scheme.
“We will also bolster the Australian Taxation Office’s (ATO) foreign investment compliance team to enforce the ban and enhance screening of foreign investment proposals relating to residential property by providing $5.7 million over four years from 2025–26.
“This will ensure that the ban and exemptions are complied with and tough enforcement action is taken for any non compliance.”
He said there would also be a crackdown on land banking by foreign investors to free up land to build more homes more quickly.
“Foreign investors are subject to development conditions when they acquire vacant land in Australia to ensure that it is put to productive use within reasonable timeframes.”
Treasurer Chalmers said there would be a focus on making sure these rules were complied with and identifying any investors who were acquiring vacant land, not developing it while prices rose and then selling it for a profit.
“This activity breaks the rules and results in delays to the development of essential residential housing and commercial developments.
“Foreign investors that have already acquired or are proposing to acquire vacant residential or non residential land will be subject to heightened scrutiny by the ATO and Treasury to ensure they comply with development conditions.”
