Foreign Investment Obligations in Residential Real Estate
The submission to the Joint Committee of Public Accounts and Audit’s inquiry based on Auditor-General’s Report 48 regarding compliance with the foreign investment obligations for residential real estate was prepared by the Foreign Investment Committee of the Business Law Section.
The Committee believes that the management by the Australian Taxation Office (ATO) and the Foreign Investment Division of the Treasury of the foreign investment compliance framework for acquisitions of interests in residential real estate is effective and achieves the Australian Government’s policy intentions in relation to foreign investment in the residential real estate sector. However, some issues have been identified regarding the administrative arrangements relating to the processing and screening of certain residential real estate applications.
Specifically, there are issues where applications have been made by significant commercial investors to acquire residential land for broadacre development, or where applications have been made by financiers in circumstances where the moneylending exemption, for one reason or another, did not apply.
You can read the full submission below.