Foreign Investment in Australia: Key Changes to Foreign Purchases of Established Dwellings from 1 April 2025

In an effort to address the ongoing housing crisis in Australia, on 16 February 2025, the Government announced significant changes to foreign investment in Australia.

Banning Foreign Purchases of Established Dwellings

Foreign Investors, including temporary residents and foreign-owned companies, will be banned from purchasing established dwellings from 1 April 2025. The ban will apply for a two-year period, until at least 31 March 2027. However, the Government intends to conduct a review to determine whether the ban should be extended beyond this two-year period.

The ban will apply where no exemption exists. The limited exemptions include, inter alia, cases where a foreign investment contributes significantly to increasing the housing supply or the availability of new homes.

Importantly, permanent residents of Australia and New Zealand Citizens will remain permitted to purchase established dwellings. Additionally, so long as the property is purchased as joint tenants, spouses of Australian citizens, permanent residents or New Zealand citizens will not be affected by the proposed changes.

How the Government Intends to Enforce these Changes

The two-year ban will be enforced via enhanced screening of foreign investment proposals regarding residential properties.

To ensure the proposed changes are successful, the Government has allocated increased funding to the Australian Taxation Office (ATO) and Treasury.

What You Should Do

As these changes come into effect, persons planning to invest in Australia’s housing market, should keep themselves up to date on the new guidelines and requirements.

If you are considering investing in Australian property or need advice regarding the implications of these changes, please get in touch with our experienced team today at office@jenkinslegal.com.au or 02 4929 2000.

This article is not legal advice, and the views and comments are of a general nature only. This article is not to be relied upon in substitution for detailed legal advice.

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