Joe Hockey introduces more stringent laws for foreign property investors

Treasurer Joe Hockey has introduced stricter laws in the parliament on Thursday for foreign investors buying properties in Australia. The new legislation will aim at penalising foreign investors who do not follow the long-established laws of the country while buying a property in stricter terms.

According to Hockey, the country’s foreign investment rules neither have been revised effectively since its introduction 40 years back nor have evolved enough efficiently to keep pace with the dynamic global investment scenario.

“Today I am introducing new legislation into Parliament that will ensure that the reporting requirements, enforcement and penalties for foreign investors who break the rules are stricter and more significant,” Hockey said in a statement.

He proposed that penalty for serious disregard to the residential real estate rules be raised from AU$90,000 to AU$135,000 or imprisonment up to three years for individuals. It also aims at penalising real estate agents, migration agents, conveyancers and lawyers who knowingly assist foreign investors in breaching rules. The laws also extend to companies and the penalty has been raised to AU$675,000 in case a company breaches the law.

"The package delivers a robust and enforceable regulatory framework and provides a predictable and welcoming environment for investors," Hockey said.

Hockey said that the new laws will necessitate foreign investors who purchase properties by breaching rules to sell their property. The government will also ensure that the investor is not able to make any capital gain through selling the property by articulating civil penalty measures. A fee for foreign investment application has also been introduced by the treasurer to exempt Australian taxpayers from bearing the cost of administering and enforcing the foreign investment rules.

Hockey ensured that these measures will ensure that all Australians as well as the future generations continue to benefit from foreign investment in Australia.

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