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It’s hoped a new Morrison government “tip-off” campaign will ensure foreigners purchasing residential real estate in Australia aren’t breaking foreign investment rules.
A statement from federal Treasurer Josh Frydenberg said that the government’s compliance campaign will ensure foreign investors purchasing residential real estate in Australia are doing the right thing.
In addition, it aims to ensure those who are breaking the rules “are subject to appropriate penalties”.
Mr Frydenberg outlined that under Australia’s foreign investment framework, foreign persons seeking to purchase residential real estate in Australia generally need to apply for foreign investment approval, which then applies to new dwellings, vacant residential land for development and, in some circumstances, established property.
According to the Treasurer, the new campaign “continues to build on the government’s reforms to strengthen Australia’s foreign investment framework”.
He said while the majority of foreign investors do act in good faith, Australians expect their government to maintain a high standard of enforcement in order to safeguard Australia’s national interest, businesses and the economy.
For anyone who does have information about someone who may be breaking the foreign investment rules, or holds concerns about potential or suspected illegal behaviours and activities by foreigners related to their ownership of Australian residential real estate, Mr Frydenberg has encouraged the passing on of confidential tip-offs to the ATO, either by phone or through an online form.
He’s also advised foreigners who have not followed the rules to come forward, noting lower penalties may apply for foreign persons who volunteer themselves — otherwise, large fines or three years’ imprisonment could result.
The new campaign follows the passage of legislation that introduces higher infringement notice penalties for residential land valued at more than $5 million, reportedly to support more effective enforcement.
New civil penalties and infringement notices will also apply where individuals have provided false or misleading information, with the chances to “ensure that our foreign investment regime is able to respond to emerging risks and global developments”, the Treasurer continued.
In closing, Mr Frydenberg stated that while Australia does welcome investment from foreigners for the significant benefit it does provide, the government “will continue to ensure that all Australians can have confidence that their interests are being protected when it comes to foreign investment rules for residential real estate”.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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