iscover
iscover 
In a joint release, Treasurer Jim Chalmers and Minister for Housing and Minister for Homelessness, Clair O’Neil announced a two-year ban on foreign purchasing of established homes.
“We’re coming at this housing challenge from every responsible angle. This is all about easing pressure on our housing market at the same time as we build more homes,” said the joint statement.
“These initiatives are a small but important part of our already big and broad housing agenda which is focused on boosting supply and helping more people into homes.
“It’s a minor change, but a meaningful one because we know that every effort helps in addressing the housing challenge we’ve inherited.”
From 1 April 2025 until 31 March 2027, foreign investors (including temporary residents and foreign‑owned companies) will no longer be able to purchase an established dwelling in Australia while the ban is in place unless an exception applies.
To assist in regulating these changes, the Australian Taxation Office (ATO) will receive increased support for its foreign investment compliance team, with $5.7 million in funding over four years from 2025–26.
The statement said: “This will ensure that the ban and exemptions are complied with and tough enforcement action is taken for any non‑compliance. Alongside the temporary ban on foreign purchases of established dwellings, we will tackle land banking by foreign investors.
“We’re cracking down on land banking by foreign investors to free up land to build more homes more quickly. Foreign investors are subject to development conditions when they acquire vacant land in Australia to ensure that it is put to productive use within reasonable timeframes.
“The Government is focused on making sure these rules are complied with and identifying any investors who are acquiring vacant land, not developing it while prices rise and then selling it for a profit. This activity breaks the rules and results in delays to the development of essential residential housing and commercial developments.”
This latest initiative is part of the $32 billion Homes for Australia plan. The ATO and Treasury will receive $8.9 million over four years from 2025–26 and $1.9 million ongoing from 2029–30 to enhance compliance and auditing capabilities to help keep this scheme in motion.
“Foreign investors that have already acquired or are proposing to acquire vacant residential or non‑residential land will be subject to heightened scrutiny by the ATO and Treasury to ensure they comply with development conditions,” it said.
“A temporary ban on foreign purchases of established dwellings, strengthened compliance activity by the ATO to enforce the ban, and an enhanced compliance approach by both the ATO and Treasury to discourage land banking by foreign investors will help ensure that foreign investment in housing is in our national interest.”
