Treasurer Jim Chalmers announced on Sunday that Australia will triple levies on foreign buyers’ purchases of existing properties as part of efforts to increase the number of affordable housing units available.
“Higher fees for the purchase of established homes, increased penalties for those that leave properties vacant, and strengthened compliance activity will help ensure foreign investment in residential property is in our national interest,” Chalmers stated in a statement.
Chalmers stated that to promote the development of more homes, the centre-left Labor government will also lower application fees for foreign investment in “build to rent” projects.
According to a transcript, Chalmers told reporters in Brisbane that the reforms announced on Sunday will produce about A$500 million ($300 million), which the government might invest in housing and other priority areas.
Chalmers stated in the statement that the government would adopt regulations in 2024 to implement the higher fees. “These adjustments are all about making sure foreign investment aligns with the government’s agenda to lift the nation’s supply of affordable housing,” Chalmers added.
The increase in fees follows Chalmers’ decision to triple the fees for foreign investors purchasing property in the nation last year, a move that the government claimed would bring in an additional A$455 million in income over the next four years.
Australia, a country of 26 million people, has one of the most expensive property markets in the world, and prices are expected to continue to rise as demand continues to outpace supply.
