The report of the House of Reps Standing Committee on Economics into Foreign investment in residential real estate was tabled Thur 27.11.2014. The 148-page report made 12 recommendations, including that the Government apply a modest administrative fee to the current screening for all foreign purchases of residential real estate, including purchases by temporary residents. This could apply from 1 July 2015.
The proposal would impose a fee on foreign investors (including temporary residents and including trusts, companies or funds) applying to FIRB for approval to purchase residential property in Australia (of all types, including new and existing housing, off-the-plan, and residential land). The Committee said the Parliamentary Budget Office analysis suggests that a modest application fee of id=”mce_marker”,500 would generate revenue of id=”mce_marker”58.7 million over 4 years.
The report said an additional stamp duty for foreign purchases of residential real estate could be considered in Australia, although may have a considerable negative impact on the levels of foreign investment in this sector.
The Government will now consider the report and respond to it in due course.
[LTN 230, 27/11/14]