Temporary Ban on Foreign Ownership of Housing in Australia

The ATO confirms that the notable exceptions include: 

• Foreign persons who seek to purchase an established dwelling for redevelopment and the redevelopment will significantly increase Australia’s housing stock by at least 20 additional dwellings; 

• Foreign persons who seek to purchase an established dwelling where the acquisition supports the availability of housing on a commercial scale.  This includes (but is not limited to) proposals to acquire an interest in one or more established dwellings in multi-unit developments (such as retirement villages, assisted living or aged care facilities, and student accommodation) on a commercial scale; 

• Foreign persons who seek to purchase existing Build to Rent developments, where the development will continue to be operated as Build to Rent;  

• Purchases by foreign-owned companies to provide housing for their Australian based workers, including those participating in the Pacific Australia Labour Mobility (“PALM”) scheme; and 

• Foreign purchases of established dwellings by permanent residents of Australia, New Zealand citizens, and spouses of Australian citizens, permanent residents or New Zealand citizens provided the property is purchased as joint tenants. 

Penalties may apply if the foreign persons buy Australian property without first obtaining approval or an exemption certificate from the ATO.  It can generally take up to 30 days for the ATO to consider the application upon receipt of the application and payment of the fee from the foreign persons. 

The measure aims at easing pressure on Australia’s housing market and increasing the availability of existing homes for local buyers by restricting foreign investment.  The Australian Government will undertake a review before its scheduled end date of 31 March 2027 to determine whether the temporary ban will continue to operate.  Depending on the outcome, the ban may be extended or modified.