Re: Current status of foreign investment in Australia
Posted: Fri Aug 28, 2015 9:20 am
Hello orru, welcome to the forums.
As a foreigner, if you’re planning on investing in Australian property, you’ll likely have to watch out for tough new penalties. Federal Treasurer Joe Hockey recently introduced new tough laws for foreign investment in Australian property, which may not bode well for some investors.
For example, if your breach any of the Foreign Investment Review Board (FIRB) rules, you may have to face up to 3 years’ imprisonment or upwards of $130,000 in penalties! The FIRB is the regulatory body which assesses applications from foreigners who’d like to invest in or buy a home here in Australia.
You may also have to pay a $5,000 ‘application fee’ to buy a property under $1 million and $10,000 for every million dollars in the purchase price. However, this may not be a huge issue because the Australian dollar is dropped right now so the real estate here is discounted.
Please note that this may only apply for foreign investment proposals after 1 December 2015.
The main thing you need to know right now is that your foreign investment proposal will now be overseen by the Australian Taxation Office (ATO). The ATO will also look over the collection of fees, upfront screening processes as well as the enforcement of the rules of the FIRB.
Cheers,
Otto
As a foreigner, if you’re planning on investing in Australian property, you’ll likely have to watch out for tough new penalties. Federal Treasurer Joe Hockey recently introduced new tough laws for foreign investment in Australian property, which may not bode well for some investors.
For example, if your breach any of the Foreign Investment Review Board (FIRB) rules, you may have to face up to 3 years’ imprisonment or upwards of $130,000 in penalties! The FIRB is the regulatory body which assesses applications from foreigners who’d like to invest in or buy a home here in Australia.
You may also have to pay a $5,000 ‘application fee’ to buy a property under $1 million and $10,000 for every million dollars in the purchase price. However, this may not be a huge issue because the Australian dollar is dropped right now so the real estate here is discounted.
Please note that this may only apply for foreign investment proposals after 1 December 2015.
The main thing you need to know right now is that your foreign investment proposal will now be overseen by the Australian Taxation Office (ATO). The ATO will also look over the collection of fees, upfront screening processes as well as the enforcement of the rules of the FIRB.
Cheers,
Otto