CANBERRA: The Australian government has planned a tax crackdown on foreign ownership of Australian homes, and plans to raise an extra $200 million to fund a compliance arm within the Australian Taxation Office and the Foreign Investment Review Board.
Prime Minister Tony Abbott and Treasurer Joe Hockey took a RAAF plane to Sydney yesterday to make the announcement, costing taxpayers about $28,000 in flight costs. The crackdown had been announced before, but the Government upped the recommended fees to be applied to foreigners.
Foreigners buying a home worth up to $1 million will pay $5000. The fee rises by a further $10,000 for every extra million dollars the house is valued at. Mr Hockey said foreign investment in Australia was welcome but rules had not been enforced under Labor. A new civil penalty system will be set up for those who breach foreign ownership rules. “Secondly, there will be a new register set up so that we know how many foreign residential and agricultural property owners are in Australia,’’ Mr Hockey said.
Shadow Treasurer Chris Bowen questioned why the Government had to use a RAAF plane to fly to Sydney for the recycled announcement. “The Government is making an art form of re-announcing or not announcing decisions on foreign investment changes in the residential real estate and agricultural sectors,’’ he said. “The Prime Minister took the RAAF VIP plane today from Canberra and Sydney and back at a cost of approximately $28,000 for a 20min announcement not of a Government decision, but of a Treasury options paper on foreign investment in residential real estate, agricultural land and agribusiness.’’
