Treasurer announces tripling of foreign investment fees on housing
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The news: In a statement on Sunday, Treasurer Jim Chalmers announced that foreign buyers would face a tripling in housing fees when purchasing established homes from 2024.
The numbers: Australia’s vacancy rates continue to hit all-time lows with a new record of 1.02% hit in October, which is far from the 2-3% seen in what is considered more normal conditions explains PropTrack. Research from Housing Australia has also found that the country faces a shortfall in housing shortfall of 106,000 homes by 2027.
The context: In addition to tripling foreign investment fees for the purchase of established homes, the joint statement with housing minister Julie Collins explains that vacancy fees for all foreign-owned dwellings purchased since May 2017 will be doubled. This would see a six-fold increase in vacancy fees for future purchase of established dwellings that remain vacant.
The government also plans to cut application fees for foreign investment in Build to Rent projects in order to encourage development and strengthen housing supply.
What they said: “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,” read Chalmers’ statement.
The source: Treasury Portfolio
