As read in Mortgage Business – Tony Abbott has outlined a range of new fees and penalties that would make like harder for foreign real estate investors.
The federal government has asked the public to comment on a new options paper, which has proposed to increase compliance requirements for investors, developers and third parties, such as mortgage brokers and real estate agents.
This would be done by creating a specialised investigative and enforcement area within the ATO.
The ATO would be tasked with “using its sophisticated data matching systems to detect instances of potential non-compliance with the foreign investment rules”.
It would draw on land titles data from the states and territories, its own taxpayer information, foreign investment approvals data and immigration movements data.
All this would impose increased costs on the government, which would be partially offset by introducing application fees for foreign investment proposals.
The government has also proposed a range of penalties for those who breach foreign investment rules, which largely limits overseas buyers to new properties.
Third parties who help foreign investors breach rules could be fined $85,000, imprisoned for two years or both.
Foreigners or temporary resident who acquire new properties without approval could be fined $10,200 in the case of individuals and $51,000 in the case of companies.
Non-residents who acquire established property without approval or temporary residents who acquire more than one established property without approval could be fined 25% of the purchase price or market value of the property, whichever is greater.
“Developers who fail to market apartments in Aust could be fined $85,000, imprisoned for 2 years. Foreigners or developers who fail to comply with reporting conditions associated with approval could be fined $42,000 in the case of individuals and $212,500 in the case of companies.
John can be contacted on 0749722081 or 0410433919. or email him at jwhitten@ihl.net.au or net www.ihl.net.au. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237).
