物權法Foreign investment fees have increased – by how much and why?

On 10 December 2023, the Australian Federal Government made an announcement through a joint media release advising of changes to the foreign investment framework, in a bid to ensure there would be more homes for Australians and there would be an increase in the housing stock that is available in Australia.

這 Foreign Acquisitions and Takeovers Fees Imposition Amendment Act 2024 received the royal assent on 8 April 2024 and the amendments to the foreign investment law took effect on 9 April 2024.

The amendments to foreign investment law as a result of the Act include:

• a tripling of foreign investment fees for foreign persons who purchase established homes in Australia;
• a doubling of vacancy fees for all foreign-owned dwellings purchased since 9 May 2017; and
• an enhancement to the ATO’s compliance regime which will in turn ensure that foreign investors sell their residence when required to do so and that they comply with the rules.

The previous and new application fees to purchase an established dwelling are as follows:

Amount	Previous Fee Per Action	New Fee Per Action
$1 million or less	$14,100	$42,300
$2 million or less	$28,200	$84,600
$3 million or less	$56,400	$169,200
$4 million or less	$84,600	$253,800
$5 million or less	$112,800	$338,400
$20 million or less	$535,800	$1,607,400
$40 million or more	$1,119,100	$3,357,300

Foreign persons can usually purchase ‘new dwellings’ on the basis that FIRB approval is obtained. However, foreign persons are generally not allowed to purchase an established dwelling, except in very limited circumstances. For example, a temporary resident can purchase one established dwelling to use as their primary residence, if certain conditions are met, or they can purchase an established dwelling for redevelopment purposes, subject to conditions. Unless they have obtained permanent residency, when they leave Australia, they are required to sell the dwelling within 6 months.

A consequence of the amendments to the foreign investment law is that foreigners are encouraged to buy new homes instead of established homes, due to the increased foreign fees payable.

An annual vacancy fee is payable if a foreign person owns residential property in Australia and the property is not residentially occupied, or genuinely available for rent for 183 days or longer in a 12-month period. The doubling of vacancy fees will encourage foreign investors to make their unused properties available for rent, which will assist with current rental access issues.

The changes also affect Build to Rent projects. Policy changes are intended to encourage development in this area, so as to provide long-term rental options. There has been a lowering of the fees payable for these projects, which can be subject to higher fees if the land is residential.

As a whole, the changes have been implemented to improve housing supply and affordability and to ensure that foreign investment in residential property is in our national interest, given that it plays a key role in our economic success.

If you would like to find out more about the changes, SLF Lawyers can assist with the provision of further information.

文章作者 Kate Dean 我們布里斯班辦公室的。