The ban accounts for around 0.4% of Australia’s housing market.
Labour has pledged to introduce a two-year ban on foreign ownership of existing Australian property, reflecting a coalition policy aimed at reducing pressure on the housing market.
The ban will hinder foreign investors, including temporary residents, such as international students and foreign-owned businesses, as they purchase residential properties established between April 2025 and March 2027.
New homes will continue to be available for purchase to foreign investors to promote housing supply.
From July 2022 to June 2023, foreign investors accounted for 5,360 residential property purchases in Australia, with only about a third of those purchases being existing residences. The ban accounts for around 0.4% of Australia’s housing market.
“We ban foreign ownership of existing Australian property,” Housing Minister Claire O’Neill told Sky News Australia on February 16th.
She said the ban It is part of the bold and ambitious housing agenda implemented by the government; I have labor I watched this for a while.
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“I’m a politician and my job is to create good public policies for the country. I think this is good public policies. That’s why the government announced it today,” she says. I did.
Prohibited costs
The government injects $1.4 million a year into the Australian Tax Office (ATO) to intensify the ban and screening of foreign investment proposals.
Additionally, to increase audits and compliance, the ATO and the Treasury will receive $2.2 million a year from 2029 to 2030, followed by $1.9 million a year.
To crack down on land banks, the government will also force foreign investors to develop vacant land purchased within a reasonable time frame.
“This is an important move. It’s not a silver bullet for the housing crisis because there are no silver bullets,” O’Neill said.
She said given housing pressure, government efforts should focus on housing security and, wherever possible, home ownership for the broader younger Australians.
Policy Impact
Property Council Australia said banning foreign purchases of existing property does not address the wastefulness of the home as foreign ownership of existing Australian homes is low.
However, policy and advocacy executive Matthew Canderal said the carve-out of the new build was welcome as every effort is needed to boost housing supply.
“We are pleased that both major political parties recognize that building new homes is the most important way for our country to address the affordable housing challenges,” he said. said.
“Australia relies on global investment. We have used other people’s money to help build and shape cities for the past three centuries. We should not stop now.”
Meanwhile, Greens housing spokesman Max Chandler Mother said workers and coalitions are trapped in a race to the bottom by denounce immigrants for the affordability of housing.
“Dutton and the Labour Party are shaming the intelligence of Australians, and this will do anything to resolve the housing crisis,” he said.
