New Ban on Foreign Purchases of Established Dwellings in Australia

From 1 April 2025, a new temporary ban will prevent foreign individuals and companies from purchasing established homes in Australia. This move is aimed at improving housing affordability and ensuring more homes are available for domestic buyers.

Key Points

• Who is Affected?

The ban applies to foreign buyers, including temporary residents and foreign-owned companies. Permanent residents, New Zealand citizens, and certain exceptions for the Pacific Australia Labour Mobility (PALM) scheme are not affected.

• Enforcement & Compliance:

The Australian Taxation Office (ATO) will increase its monitoring and enforcement of residential property investments. Current foreign investment approvals will be audited, and stricter conditions will be applied to developments.

• Review & Extension:

The government will review the effectiveness of the ban by 2027, with the possibility of extending the measure beyond that period.

This change will limit foreign involvement in the residential property market, with the intention to free up more homes for local buyers and address housing affordability.

If you’re a foreign investor or are otherwise affected by this ban, we recommend reviewing your investment strategy to align with these new regulations and encourage you to contact our office if we can provide assistance in relation to this.