PHOTO: FILE
On December 10th, Treasurer Jim Chalmers announced that Australia plans to triple fees for foreign buyers acquiring existing homes, forming part of a strategy to enhance the availability of affordable housing. The adjustments include higher fees for established home purchases, increased penalties for leaving properties vacant, and intensified compliance efforts, all aimed at ensuring foreign investments in residential property align with the national interest.
Additionally, the center-left Labor government, in an effort to promote the construction of more homes, will reduce application fees for foreign investments in “build to rent” projects. This move follows the government’s commitment in June to allocate A$2 billion ($1.3 billion) for the creation of thousands of new affordable homes across the country. The anticipated revenue of approximately A$500 million ($300 million) from the fee increase will be directed towards priority areas such as housing, as stated by Chalmers during a press conference in Brisbane.
These adjustments are designed to align foreign investment with the government’s agenda to augment the nation’s supply of affordable housing, with legislative measures set to be introduced in 2024 to implement the higher fees. This fee hike follows Chalmers’ decision last year to double fees for foreign investors purchasing assets in Australia, projected to generate an additional A$455 million in revenue over four years. Despite Australia’s housing market already being one of the most expensive globally, prices are expected to maintain steady growth due to rising demand surpassing supply in the nation of 26 million people. (Note: Exchange rate – $1 = 1.5205 Australian dollars)
SOURCE: REUTERS