The Federal Government recently announced that on and from 1 April 2025, it will impose a temporary ban on foreign purchases of established dwellings in Australia for a period of at least two years. The Government is also determined to crack down on land banking (i.e. the real estate investment strategy of buying and holding undeveloped land for future sale or development).

Below is a copy of the announcement contained on the ATO website.

You can also review the relevant media release here: Albanese Government clamping down on foreign purchase of established homes and land banking | Treasury Ministers

If you have any questions about the announcement and its impact, please get in touch.

Article from the ATO website - Banning foreign purchases of established dwellings

“On 16 February 2025, the Government announced that it will impose a temporary ban on foreign purchases of established dwellings for at least 2 years and crack down on land banking.

From 1 April 2025 to 31 March 2027, foreign persons, including temporary residents and foreign-owned companies, cannot apply to buy an established dwelling in Australia unless an exception applies. These limited exceptions will include investments that significantly increase housing supply or support the availability of housing supply, and for the Pacific Australia Labour Mobility (PALM) scheme.

Other existing exceptions remain in place, such as for purchases by:

• permanent residents
• New Zealand citizens
• spouses of Australian citizens, permanent residents or New Zealand citizens (when purchased as joint tenants).

A review will be undertaken to determine if the ban should be extended beyond 31 March 2027.

We will enforce the ban through enhanced screening of foreign investment proposals relating to residential properties.

We will carry out a full audit of current foreign investment approvals for vacant residential land development.

We will also take a tougher stance on compliance of foreign investment approvals for vacant residential land development. This will help ensure that foreign investors who have bought or want to buy vacant residential land meet development conditions.”