The Albanese Government is set to ban foreign investors from purchasing established homes in Australia for two years, as part of a broader strategy to tackle the country’s housing affordability crisis.
The move, which takes effect from 1 April 2025 until 31 March 2027, aims to free up more homes for Australians while cracking down on speculative land banking by foreign investors.
The government says this temporary ban is a “minor but meaningful” step in its $32 billion Homes for Australia plan, which focuses on boosting housing supply and making home ownership more accessible.
Under current laws, foreign investors are generally restricted from buying existing properties unless they meet specific conditions, such as living in Australia for work or study. However, from April next year, all foreign investors—including temporary residents and foreign-owned companies—will be barred from purchasing established dwellings unless their investment significantly increases housing supply or supports availability, such as through the Pacific Australia Labour Mobility (PALM) scheme.
To enforce the ban, the government will provide the Australian Taxation Office (ATO) with $5.7 million over four years to strengthen its foreign investment compliance team and tighten screening processes.
Alongside the ban on existing home purchases, the government is targeting land banking—where foreign investors buy vacant land and leave it undeveloped while property values rise. The government is providing the ATO and Treasury with $8.9 million over four years to audit and enforce compliance, ensuring that land is developed within reasonable timeframes instead of being held for profit.
Treasurer Jim Chalmers said the crackdown is about making sure “foreign investment in housing is in our national interest,” while Housing Minister Clare O’Neil emphasised that these measures are just one part of a much larger housing agenda.
The government has criticised Opposition Leader Peter Dutton and the Coalition for promising to cut billions from housing initiatives, including the Housing Australia Future Fund, arguing that such cuts would worsen the crisis.
“The contrast is clear—Labor is all about more homes, the Liberals are all about more cuts,” the government said in a statement.
With Australia’s housing market under increasing pressure, the Albanese Government is betting that tougher regulations on foreign investment will help ease demand while it ramps up housing supply.
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