Canberra [Australia], December 10: Foreign investors in the Australian housing market will be hit with higher taxes under a government plan to address housing affordability.
Treasurer Jim Chalmers and Minister for Housing Julie Collins on Sunday announced new rules tripling the foreign investment fees for the purchase of established homes in Australia and doubling vacancy fees for all foreign-owned dwellings purchased since May 2017.
At the same time, the government will seek to incentivize foreign investment in build-to-rent projects to boost housing supply in Australia by cutting application fees.
"These adjustments are all about making sure foreign investment aligns with the government's agenda to lift the nation's supply of affordable housing," Chalmers and Collins said in a joint statement.
"The higher fees for established dwellings will encourage foreign buyers to invest in new housing developments. This creates additional housing stock, jobs in the construction industry and supports economic growth."
According to the PropTrack Market Insight Report, Australia's rental vacancy rate fell to a record-low 1.02 percent in October.
A report published by government agency Housing Australia in April found that Australia is facing a shortfall of 106,300 homes by 2027.
The policy announcement on Sunday came ahead of the government's new migration strategy to be unveiled on Monday following a major review of the system.
The government-commissioned review, which handed down its final report in April, found that the system is "broken" and called for a major overhaul.
Chalmers told Sky News Australia on Sunday that net overseas migration to Australia would come down "substantially" under the new strategy after hitting a historic high of more than 500,000 people in the 2022-23 financial year.
Source: Xinhua
