DUTIES AMENDMENT (ADDITIONAL DUTY FOR FOREIGN
PERSONS) BILL 2018
608. Hon KEN BASTON to the minister representing the
Minister for Finance:
I refer to the Duties Amendment (Additional Duty for Foreign
Persons) Bill 2018, which will introduce a higher than promised tax hike on
foreign property purchasers.
(1) Will the
minister confirm that under commonwealth rules, foreign property buyers are
excluded from buying established dwellings?
(2) If no to (1), what are the restrictions of the
commonwealth rules?
(3) What portion of the market for non-established dwellings
do foreign buyers make up?
Hon STEPHEN DAWSON
replied:
I thank the honourable member for some notice of the
question.
(1) The
commonwealth government is responsible for determining and controlling the
types of property that foreign persons are allowed to purchase. Foreign
investment in residential real estate is mostly limited to new dwellings.
(2) Non-resident
foreigners are generally prohibited from purchasing established dwellings in
Australia. However, a non-resident can purchase an established property in some
limited circumstances. For example, a temporary resident can apply to purchase
one established dwelling to use as a home while they live in Australia, which
must then be sold upon leaving Australia.
(3) There is
no robust source of data that would enable one to determine what percentage of
non-established dwellings are purchased by foreign buyers. However, it was
estimated that in 2016–17, foreign purchasers comprised less than two per
cent of all residential property transactions, including new dwellings and
vacant land.