Foreign Buyer Tax Hike
Foreign investors who buy houses in Australia and leave them empty are being targeted with a tax increase in an effort to help ease the national housing crisis.
Currently, foreign buyers must apply to purchase property in Australia and pay a one-off foreign investment application fee.
If the property is left empty for six months or more in a year, they must also pay an annual vacancy fee.
The changes will triple foreign investment fees for established homes and double vacancy fees for all foreign-owned dwellings purchased since May 9, 2017.
Treasurer Jim Chalmers says the increases are aimed at ensuring foreign investment aligns with the government’s agenda to lift the nation’s supply of affordable housing.
He says the increased vacancy fees will encourage foreign investors to make their unused properties available to renters.
“The higher fees for established dwellings will encourage foreign buyers to invest in new housing developments,” Chalmers says.
“This creates additional housing stock, jobs in the construction industry and supports economic growth.”
