This bill became law on Apr 8th, 2024.
Budget, tax & economy
Foreign buyers will pay triple the usual foreign investment application fee when buying an established homeThis means an existing home, not a new one, and this bill makes foreign buyers pay much more if they want to buy one. in Australia.
Foreign investment settings left weaker pressure against foreign buyers purchasing established homes and leaving homes vacant, instead of adding to housing supply. This bill raises those fees and vacancy charges so buying existing homes costs more and the rules better push investment toward new housing.
Australia already charged foreign investors fees under the foreign investment regime, including vacancy fees for homes left empty after purchase, but the government argued those settings were too weak to discourage buying established dwellings that did not add to housing supply. After announcing tougher charges in the 2023-24 Mid-Year Economic and Fiscal OutlookThis is the government update where the higher foreign investment housing fees were first announced before the bill was introduced., Parliament passed this bill in early 2024 to lift the fee capThis is the legal maximum the government can charge under the regulations, and the bill lifts it to $7 million., triple established-home application fees and double vacancy fees, and it became law on 8 April 2024.
The main criticism was that higher fees on foreign buyers and vacant homes would do little on their own if the government still failed to enforce the rules and fix the larger housing supply problem. This argument came mainly from Coalition speakers, who supported the bill but said its practical effect would be limited without stronger enforcement and broader housing measures.
Julie Collins MPThis is what the acronym MP means in the bill papers, for example when naming the Treasurer or other speakers. introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 08 Apr 2024
Final passage
Passed without a counted vote
Members called out ‘aye’ or ‘no’ — no individual votes were recorded.
Passage speed
61 days
From introduction to the latest recorded parliamentary step
Meaning
Foreign buyers will pay triple the usual foreign investment application fee when buying an established homeThis means an existing home, not a new one, and this bill makes foreign buyers pay much more if they want to buy one. in Australia.
The law lifts the maximum foreign investment fee capThis is the legal maximum the government can charge under the regulations, and the bill lifts it to $7 million. to $7 million, allowing much higher charges than before.
Most exemption certificateThis is official permission that can let a foreign investor apply under the rules in a different way or avoid needing separate approval in some cases. applications under the foreign investment rules will be charged at 75 per cent of the full fee instead of the full amount.
Applications that only cover reviewable national security actions will generally pay 25 per cent of the full fee, but that discount still sits on top of the higher fees for established homes.
Vacancy fees for foreign-owned homes are doubled for vacancy years starting after the law begins, including homes bought before the start date.
(2) However, if the action is to acquire an interest in residential land on which there is at least one established dwelling, then the amount of the fee for the action is 3 times the fee worked out by applying subsection (1).Foreign Acquisitions and Takeovers Fees Imposition Amendment Act 2024 final Act text
Omit “$1,045,000”, substitute “$7,000,000”.Foreign Acquisitions and Takeovers Fees Imposition Amendment Act 2024 final Act text
The fee for most other certificates is 75% of the full feeForeign Acquisitions and Takeovers Fees Imposition Amendment Act 2024 final Act text
The fee for certificates dealing only with reviewable national security actions is 25% of the full feeForeign Acquisitions and Takeovers Fees Imposition Amendment Act 2024 final Act text
(2) To the extent the amendments made by the amending Act relate to vacancy fees, the amendments apply in relation to vacancy years starting on or after the commencement of those amendments, whether the dwelling in respect of which a fee is payable is acquired before, on or after that commencement.Foreign Acquisitions and Takeovers Fees Imposition Amendment Act 2024 final Act text
Context
Australia already charged foreign investors fees under the foreign investment regime, including vacancy fees for homes left empty after purchase, but the government argued those settings were too weak to discourage buying established dwellings that did not add to housing supply. After announcing tougher charges in the 2023-24 Mid-Year Economic and Fiscal OutlookThis is the government update where the higher foreign investment housing fees were first announced before the bill was introduced., Parliament passed this bill in early 2024 to lift the fee capThis is the legal maximum the government can charge under the regulations, and the bill lifts it to $7 million., triple established-home application fees and double vacancy fees, and it became law on 8 April 2024.
Government announces higher foreign investment housing fees in the 2023-24 Mid-Year Economic and Fiscal OutlookThis is the government update where the higher foreign investment housing fees were first announced before the bill was introduced.
The government said it would triple fees for foreign purchases of established dwellings and double vacancy fees to push investment towards new housing stock.
Hansard ↗Government introduces the bill to raise the fee capThis is the legal maximum the government can charge under the regulations, and the bill lifts it to $7 million. and implement the new charges
The bill was introduced in the House to lift the maximum foreign investment fee to $7 million so the announced higher charges could be imposed by regulation.
Parliamentary timeline ↗House debate links the bill to empty homes and housing supply
Speakers argued that higher fees for established dwellings and vacant homes would discourage leaving homes empty and steer foreign investment towards adding new supply.
Hansard ↗Parliament passes the bill
Both houses passed the bill in the same form, completing Parliament's approval of the higher foreign investment and vacancy feeThis is an extra charge for a foreign-owned home that is left empty, and the bill doubles it for later vacancy years. settings.
Parliamentary timeline ↗Royal AssentThis is the final step that turns a passed bill into an Act of Parliament. makes the higher-fee changes law
Royal AssentThis is the final step that turns a passed bill into an Act of Parliament. turned the bill into an Act, clearing the way for the new fee capThis is the legal maximum the government can charge under the regulations, and the bill lifts it to $7 million. and higher charges to take effect under the foreign investment frameworkThis is the system of rules that controls what foreign investors can buy in Australia and how much they must pay to do it..
Parliamentary timeline ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
Second reading debate
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The bill reached this recorded parliamentary step.
Reported from Federation Chamber
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThis is the final step that turns a passed bill into an Act of Parliament., turning the bill into an Act.
Key criticism
The main criticism was that higher fees on foreign buyers and vacant homes would do little on their own if the government still failed to enforce the rules and fix the larger housing supply problem. This argument came mainly from Coalition speakers, who supported the bill but said its practical effect would be limited without stronger enforcement and broader housing measures.
No party represented in the debate opposed the bill, but criticism said it was too limited to matter much.
Too limited without enforcement and supply reform
Critics argued the bill targets a small part of the housing problem and risks being more symbolic than effective if the government does not properly enforce foreign ownership rules or increase overall housing supply.
Further sources
Votes
The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Parliamentary debate
Start here — lead voices
Collins supports the bill, saying it will triple foreign investment fees for established dwellings and double vacancy fees to push foreign buyers toward new housing and encourage vacant properties to be rented out.
Read in Hansard ↗Sukkar says the coalition will support the bill because it raises fees on foreign buyers and vacancy charges, but he argues it is too limited to solve the housing crisis.
Read in Hansard ↗Coker supports the bill because she says it will push foreign investment toward new housing, penalise vacant properties and help address housing shortages in Australia.
Read in Hansard ↗Carol Brown supports the bill, saying it will triple foreign investment fees for established dwellings and double vacancy fees.
Read in Hansard ↗All speeches by bloc
4 speakers · 5 contributions · 4 support
“This legislation tackles this issue, so I stand today to support the Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2024. This bill is making sure that foreign investment aligns with our government's agenda to lift the nation's supply of housing. It's also about making sure that we have more houses for more people. The people of my electorate have been calling for this, and our government is acting on their calls.”Read the full speech in Hansard ↗
“This Bill implements the measures announced by the Government in the 2023-2024 Mid-Year Economic and Fiscal Outlook to triple foreign investment fees for established dwellings and double vacancy fees.”Read the full speech in Hansard ↗
Hansard records 2 separate contributions by Julie Collins on this bill. They are grouped here so the speaker is listed once.
Second reading speech
Collins supports the bill, saying it will triple foreign investment fees for established dwellings and double vacancy fees to push foreign buyers toward new housing and encourage vacant properties to be rented out. She presents it as part of the government’s wider housing affordability and supply agenda.
“This bill implements the measures announced by the government in the 2023-24 Mid-Year Economic and Fiscal Outlook to triple foreign investment fees for established dwellings and to double vacancy fees.”Read this contribution in Hansard ↗
Second reading speech
Julie Collins supports the bill, saying it will help the government use foreign investment rules to boost housing supply by tripling fees for established dwellings and doubling vacancy fees. She argues the changes will encourage investment in new homes and keep foreign investment aligned with the housing agenda.
“Together, these bills will support the integrity of the foreign investment rules, with the aim of encouraging foreign persons to purchase new properties to increase Australia's housing stock. The government's housing agenda represents the most significant housing reforms in a generation, after a decade of little action from the former government. With the passage of these measures through the House of Representatives today, we are adding to these reforms to ensure more Australians have a safe, affordable place to call home. I commend these bills to the House.”Read this contribution in Hansard ↗
“I'm proud to stand on this side of the chamber to support the bills before us today, and I do so in the knowledge that the Treasurer is putting the interests of Australia and Australians first. This was demonstrated by the recently announced tax packages and is demonstrated again by this piece of legislation. I'm sure it will be welcomed by members of my community.”Read the full speech in Hansard ↗
2 speakers · 1 support · 1 unclear
“I'm rising to signal our support for the Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2024 and the Treasury Laws Amendment (Foreign Investment) Bill 2024. The FATA bill, in particular, is a two-schedule bill to triple the fees for acquiring established residential dwellings and to double vacancy fees in the foreign investment framework. The increase in fees is self-evidently designed to target vacant housing supply and to support housing in this country.”Read the full speech in Hansard ↗
“To the Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2024, which we're discussing today: in my community, the city of Whitehorse is a council that partly covers my area. Councillor Blair Barker had a freedom of information application to note how many residences were unoccupied in that particular council. It was in the many thousands, but there were only 40 properties and owners that were levied the vacancy levy. There's a real issue with enforcement. If we are to have the residential property market be more than just the equivalent of money under the mattress—there's a lot of capital floating around the world, and the Australian residential property market can't be the equivalent of money under the mattress. It is so much more to our economy and to our sense of who we are.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThis is the final step that turns a passed bill into an Act of Parliament., turning the bill into an Act.
