Changes to Foreign Investment Arrangements

The Australian Government announced changes at the end of 2008 to its foreign investment arrangements for purchases of residential real estate by foreign persons.  Changes to the arrangements are aimed at reducing delay and easing compliance costs for Australian vendors and their agents, the building industry and foreign persons purchasing real estate.

The changes will come into effect progressively, however should be fully operational in late February.  The changes that are currently in effect are:

• foreign students are not subject to a $300,000 limit when purchasing and established residence;
• the development condition for vacant land has been extended from 12 to 24 months;
• new dwellings include those which have never been sold but may have been occupied for no more than 12 months;
• the 50 per cent rule applying to developers of new dwellings limiting purchases by foreign persons no longer applies; and
• foreign businesses are eligible to purchase established housing for their Australian based employees.

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For more information about the changes, visit www.firb.gov.au/content/policy.asp

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