Changes to Foreign Purchases of Established Dwellings

On 16 February 2025, the Albanese Government revealed plans to impose a two-year restriction on foreign investors acquiring established homes in Australia. Effective from 1 April 2025 until 3 March 2027, this measure will prevent foreign individuals – including temporary residents and companies with foreign ownership – from buying existing residential properties unless the individual/company qualifies under specific exceptions.

These limited exceptions apply to investments that meaningfully increase housing supply or enhance housing availability, as well as for transactions under the Pacific Australia Labour Mobility (PALM) scheme.

The current exemptions will still apply for:

• Permanent residents;

• New Zealand citizens; and

• Spouses of Australian citizens, permanent residents, or New Zealand citizens (when buying as joint tenants).

The initiative is aimed at reducing pressure on the housing market and accelerating home construction. In addition, to deter land banking, foreign investors will be required to develop vacant land within a reasonable period.

A review will take place before the ban expires to determine if these restrictions should be extended beyond 3 March 2027. Updated policy guidance will be issued by the ATO and Treasury ahead of the changes taking effect.

For more information on the recent announcement that may impact you, please contact one of our people.

Eollyn Cortes 0478 727 395

Sagang Chung 0431 435 333