Imposes temporary ban on foreign purchases of established dwellings
16 Feb 2025
On 16 February 2025, the Government of Australia announced that, from 1 April 2025, foreign persons - including temporary residents and foreign-owned companies - would be temporarily banned from purchasing established dwellings in Australia, unless an exception applies. Exceptions include investments that significantly increase housing supply or support the availability of housing, as well as investments under the Pacific Australia Labour Mobility (PALM) scheme, a migration programme allowing employers to recruit foreign workers from Pacific Island countries under certain conditions. The ban is set to remain in force at least until 31 March 2027.
To support enforcement of the ban and strengthen the screening of foreign investment proposals in residential property, the Government allocated $5.7 million over four years from 2025–26 to expand the Australian Taxation Office’s foreign investment compliance team. The funding will ensure adherence to the ban and exemptions, and enable firm action in cases of non-compliance.
On 14 March 2025, the Australian Treasury issued an updated “Residential Land Guidance Note”.
Nature of measure:
Type:
-
Entry and establishment (Ownership and control, Access to land)
Industry:
-
Services (Real estate activities)
Inward FDI:
Yes
Outward FDI:
No
Sources:
