As of 1 April 2025, the Government has imposed a temporary ban on foreign purchases of established dwellings.
This means that foreign persons, including temporary residents and foreign-owned companies, cannot apply to buy an established dwelling in Australia, unless an exception applies. Such exceptions include investments that significantly increase housing supply or support the availability of housing supply, and for the Pacific Australia Labour Mobility (PALM) scheme. Other exceptions include purchases made by:
permanent residents
New Zealand citizens
spouses of Australian citizens, permanent residents or New Zealand citizens (when purchased as joint tenants).
The policy will be implemented for at least 2 years, currently set to end on 31 March 2027. Whether the ban will be extended is dependent upon the outcome of a Government review.
The Government is enforcing this ban through enhanced screening of foreign investment proposals relating to residential properties. They are also carrying out full audits of current foreign investment approvals for vacant residential land development.
The Government have also declared tougher compliance measures on foreign investment approvals for vacant residential land development to ensure that foreign investors who have bought or want to buy vacant residential land meet development conditions.
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au.
Source: ATO