Australiaâs
foreign investment laws allow and welcome investorâs to invest in Australian
property, but only brand new property – that is, property that is purchased off
the plan or property that has never had an owner. Back
in May 2015, the Australian Taxation Office (ATO) was instructed to take greater
focus on tax evasion by non-residents. This included foreign owned companies
operating in Australia through to property investors. However the ATO was also to take on more
power with regards to enforcing the foreign investment rules, in relation to
property. âForeign investment is integral to Australiaâs economy, it is important
to uphold the integrity of the framework and ensure that foreign investment is
not contrary to our national interestâ, the then Treasurer Joe
Hockey, is quoted as saying back in June 2015.
The
Foreign Investment Review Board (FIRB) had already been actively considering
the impact of any foreign investment proposals on tax revenues, however during
the ATOâs first month of engagement, 195 suspected breaches were
identified, against 24 individuals. This was then followed up
in August, with the former Treasurer ordering 6 residential properties
unlawfully held by foreign nationals, to be sold. âThe ATOâs data matching program is already getting results. For example,
they have identified one foreign investor who appears to be linked to over 10
properties ranging from a $300,000 unit to a house worth $1.4 millionâ Joe Hockey said.
But the news
getâs better, this week, data shows another 125 foreign investors have voluntarily taken advantage of the amnesty period offered
by the Australian government for either intentional or accidental braches of
the law. The deadline for the amnesty
period is 30 November 2015, with any subsequent breaches found, will find the
investor having to sell the property/properties. From
1 December 2015, foreign residents who unlawfully purchase established
residential property will face increased criminal penalties up to $127,500 or
three years imprisonment for individuals and up to $637,500 for companies. The
125 volunteers were foreign nationals
from Singapore, Indonesia, the UK and China.
