On Feb. 16, AST GVT clamped down on certain foreign purchases.
AST GVT announced that foreign investors will be banned from purchasing established dwellings in Australia from Apr, 1, 2025 to Mar. 31, 2027, unless an exception applies.
This is aimed at boosting supply in housing market, helping more people into homes.
Also follows AST FIRB Apr. 2024 issued a press release explaining that the act triples foreign investment fees for acquisition of established dwellings, see #200455.
Description of Initiatives
Foreign investors including temporary residents and foreign-owned companies will no longer be able to purchase an established dwelling in Australia during the period.
Exceptions will include investments that significantly increase housing supply or support the availability of housing supply, for Pacific Australia labour mobility scheme.
At the same time, AST GVT said it will tackle land banking by foreign investors.
AST GVT will provide funding to AST Tax and Treasury to implement an audit program and enhance their compliance approach to target land banking by foreign investors.
Foreign investors that have already acquired or alternatively are proposing to acquire vacant residential or non-residential land will be subject to heightened scrutiny.
Effectiveness
The temporary ban will be effective from Apr. 1, 2025 to Mar. 31, 2027.
Next Steps
AST Tax and AST GVT will publish updated policy guidance prior to commencement.
Feb. 2025 AST FIRB Comments
On Feb. 17, 2025, AST FIRB also share initiatives above to tackle housing issues.
