At Hill Legal, we’re committed to keeping you informed about the latest legal developments in Australia. Recently, the Australian Government announced significant changes to foreign investment rules concerning established dwellings. Here’s what you need to know about these changes and how they might affect you.
On 16 February 2025, the Government revealed a temporary ban on foreign purchases of established dwellings. This ban will be in effect for two years, starting from 1 April 2025 and running until 31 March 2027. The aim is to address housing supply issues and curb land banking practices.
Who Does the Ban Apply To?
The ban applies to foreign persons, including:
- Temporary residents
- Foreign-owned companies
These individuals and entities will not be able to apply to purchase established dwellings in Australia during the ban period unless they meet specific exceptions.
What Are the Exceptions?
While the ban is broad, there are limited exceptions in place. These include:
- Investments that significantly increase housing supply or support housing availability.
- Purchases under the Pacific Australia Labour Mobility (PALM) scheme.
Additionally, existing exceptions remain unchanged for:
- Permanent residents
- New Zealand citizens
- Spouses of Australian citizens, permanent residents, or New Zealand citizens, provided the property is purchased as joint tenants.
What Happens After 31 March 2027?
A review will be conducted to determine whether the ban should be extended beyond its current end date.
How Will the Ban Be Enforced?
The Australian Taxation Office (ATO) will play a key role in enforcing these new rules. Measures include:
- Enhanced screening of foreign investment proposals related to residential properties.
- A full audit of current foreign investment approvals for vacant residential land development.
- Stricter compliance measures to ensure foreign investors meet development conditions for vacant residential land.
Why Does This Matter?
These changes reflect the Government’s commitment to addressing housing affordability and ensuring that foreign investment aligns with Australia’s housing needs. If you’re a foreign investor or someone impacted by these changes, it’s crucial to understand how these rules may affect your plans.
At Hill Legal, we specialise in navigating complex legal landscapes like this one. If you have questions about how these changes might impact you or need assistance with foreign investment approvals, our experienced team is here to help.
Contact Hill Legal on 03 5976 6500 today to discuss your situation and ensure you’re fully informed about your legal rights and obligations. Let us guide you through these changes with confidence.
