Following concerns about the impact of offshore buyers on the local housing market, a parliamentary committee is considering implementing a fee for foreign property buyers to apply for approval from the Foreign Investment Review Board (FIRB).
Liberal minister Kelly O’Dwyer, who is leading the inquiry, said a fee of as much as $1500 per purchase would provide the FIRB with enough funds to ensure it can properly enforce rules for international buyers.
“Any additional resourcing of FIRB should come directly from application fees,” Ms O’Dwyer told the Australian Financial Review.
“Given the importance of FIRB’s rules in providing confidence to the broader Australian community on residential property, ensuring good processing and strong recovery is essential.”
A fee of $1500 would reportedly raise over $400 million within a decade.
The Reserve Bank of Australia will today publish its official six-monthly financial stability review, which is expected to lay out official concerns about the property market.