CANBERRA, Australia: Over the weekend, Treasurer Jim Chalmers said that as part of Australia’s efforts to increase the supply of affordable housing for locals, fees on purchases of existing homes by foreign buyers will be tripled.
In a statement, Chalmers said, “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.”
The Labor government would also reduce application fees for foreign investment in “build to rent” projects to encourage the construction of more homes, he added.
To increase public housing supply for Australians on waiting lists, in June, Canberra allocated A$2 billion ($1.3 billion) to deliver thousands of new affordable homes.
Chalmers told reporters in Brisbane that the policy announced on Sunday will generate some A$500 million ($300 million), which the government plans to invest in priority areas, such as housing.
“These adjustments are all about making sure foreign investment aligns with the Government’s agenda to lift the nation’s supply of affordable housing,” he said, adding that Canberra will introduce laws to adopt the higher fees in 2024.
Already among the most expensive in the world, house prices in Australia are predicted to continue increasing amid demand outstripping supply.
