On 16 February 2025, the Australian Government announced that from 1 April 2025, foreign persons (including temporary residents and foreign-owned companies) will be temporarily banned from purchasing established dwellings in Australia unless an exception applies. This ban will be in place until 31 March 2027. A review will be undertaken to determine whether it should be extended beyond this point.
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).
The Government also announced that the Australian Taxation Office (ATO) and Treasury will implement an audit program and enhance their compliance approach to also target land banking by foreign investors.
The ATO and Treasury will publish updated guidance prior to the commencement of these changes.
Further details can be found in the media release. or https://www.ato.gov.au/individuals-and-families/investments-and-assets/foreign-investment-in-australia/residential-property-application-for-foreign-investors