SYDNEY: Foreigners who break rules on buying Australian real estate will face up to three years in jail or fines of Aus$127,500 (US$100,050) for individuals and Aus$637,500 for companies under tougher rules unveiled yesterday.
In announcing the changes, conservative Prime Minister Tony Abbott said his government was in favour of foreign investment.
“But it does have to be the right foreign investment, in the right things, and we do need to have a foreign investment review system which encourages public confidence that the foreign investment we need really is in Australia’s national interest,” Abbott said.
Foreigners are only allowed to buy new dwellings and are barred from purchasing existing residential property in Australia, but the government argues there has been little enforcement of the rules.
Cashed-up foreigners, many from China, have been blamed for driving up prices in Australian property markets, particularly in Sydney and Melbourne, and placing home ownership out of reach of many locals.
Abbott said that under the changes enforcement would be beefed up, while third parties such as real estate agents who knowingly assisted a foreigner to breach the rules would be fined up to Aus$42,500 for individuals and Aus$212,500 for companies. — AFP