SYDNEY (Reuters) – Australia will triple charges on purchases of current properties by overseas consumers, Treasurer Jim Chalmers mentioned on Sunday, as a part of measures geared toward growing the provision of reasonably priced housing.
“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,” Chalmers mentioned in an announcement with Housing Minister Julie Collins.
The centre-left Labor authorities would additionally reduce utility charges for overseas funding in “build to rent” initiatives to encourage building of extra properties, Chalmers mentioned.
The charge hike comes after Chalmers final 12 months doubled the charges for overseas buyers shopping for property within the nation, which the federal government mentioned would generate A$455 million in additional income over 4 years.
“These adjustments are all about making sure foreign investment aligns with the Government’s agenda to lift the nation’s supply of affordable housing,” Chalmers mentioned, including the federal government would introduce legal guidelines in 2024 to implement the upper charges.
Costs in Australia’s housing market, already among the many costliest on the earth, are forecast to keep up regular development as rising demand outstrips provide within the nation of 26 million individuals.
The federal government in June pledged A$2 billion to ship 1000’s of latest reasonably priced properties nationwide, with the intention of boosting public housing provide for Australians on ready lists.
