Government ban on foreign purchases of established dwellings commences on 1 April 2025

On 16 February 2025, the Federal Government announced that it will impose a temporary ban on foreign purchases of established dwellings for at least 2 years and crack down on land banking.

From 1 April 2025 to 31 March 2027, foreign persons, including temporary residents and foreign-owned companies, cannot apply to buy an established dwelling in Australia, unless an exception applies. These limited exceptions will include investments that significantly increase housing supply or support the availability of housing supply, and for the Pacific Australia Labour Mobility (PALM) scheme.

Other existing exceptions remain in place, such as for purchases by:
* permanent residents;
* New Zealand citizens; and
* spouses of Australian citizens, permanent residents or New Zealand citizens (when purchasing as joint tenants).

The Government intends to enforce the ban through enhanced screening of foreign investment proposals relating to residential properties and will undertake a review of the ban prior to the expiration of its 2 years period to determine if it should be extended beyond 31 March 2027.

The Government also intends to carry out a full audit of current foreign investment approvals for vacant residential land development to crack down on land banking. It will also take a tougher stance on compliance of foreign investment approvals for vacant residential land development to help ensure that foreign investors who have bought or want to buy vacant residential land meet development conditions.

If you need advice about this issue or require assistance with any matter concerning a property transaction please contact our accredited property specialists John Bateman or Michael Battersby on (02) 4731 5899 or email us at property@batemanbattersby.com.au for further information or assistance.