This article is from the Australian Property Journal archive
EIGHT foreign investors have been ordered by Treasurer Scott Morrison to sell their residential properties, after they were found to be in breach of the foreign investment framework.
Treasurer Morrison said the government is committed to enforcing our rules so that foreign nationals illegally holding Australian property are identified by authorities and their illegal holdings relinquished.
The properties were purchased in Victoria, Queensland and New South Wales with prices ranging from about $200,000 to over $5 million.
The individuals involved come from a range of countries – Canada, China, India, Malaysia and the United States of America.
“Under the reduced penalty period announced in May, the investors linked to the eight properties now have 12 months to sell the properties, rather than the normal three month period, and will not be referred for criminal prosecution.
“Illegal real estate purchases by foreign citizens attract criminal penalties of $135,000 or three years’ imprisonment, or both for individuals; and up to $675,000 for companies. The new rules also allow capital gains made on illegal investments to be forfeited,”
The latest orders brings to 27 the number of properties the government has forced foreign nationals to dispose of.
“The government’s transfer of responsibility to the ATO for compliance has enabled more active investigations and actions targeting illegitimate purchases,” he added.
The Treasurer said since this transfer in May, over 1,500 matters have been referred for investigation and over 800 cases remain under active investigation.
Australian Property Journal
