The busiest real estate sales season of the year is approaching, and people from all walks of life are increasingly worried that wealthy mainland Chinese buyers will squeeze out Australians who don’t have deep pockets out of their home market. In order to solve the housing affordability crisis in Australia, a parliamentary committee recommended that Chinese buyers pay additional stamp duty or handling fees. At the hearing, the committee learned from real estate brokers that many Chinese have imposed the highest fines for buying houses in Australia for violations8.5Ten thousand yuan is regarded as "the cost of doing business in Australia".

According to the "Australian Financial Review" report, in order to solve Australia's housing affordability crisis, a parliamentary committee recommended that Chinese buyers pay additional stamp duty or handling fees.

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The parliamentary committee is considering multiple options, including fees for residential acquisitions approved by the Foreign Investment Review Board (FIRB).

This committee composed of Union and Labor MPs is still considering more radical measures, that is, whether to impose additional stamp duty on all foreign buyers. In 2011, Singapore also imposed a 10% tax in order to curb the over-purchasing behavior of foreigners in the local area, and Australia's move is quite effective.

Supporters believe that this move will not only bring additional revenue to the government, but also conceptually similar to the royalties imposed on iron ore exports in Queensland and Western Australia.

Committee chairman Kelly O'Dwyer told the Australian Financial Review that the agency will examine the practices of other countries to address the potential distorting effects of foreign investment on the Australian housing market. "Obviously, this is an issue that needs to be considered." She said.

Other possible proposals include new severe penalties for foreign buyers who violate FIRB regulations. One way is to set a range of fluctuations in the percentage of fines for the price of properties purchased by overseas violators.

Ordwell said: “We need to ensure that the law is enforced, the people are full of confidence... and those who do not comply with the law will face punishment.”

The parliamentary committee heard testimony from FIRB chairman Brian Wilson, who stated that it is “very difficult and very expensive” to supervise foreign buyers who deliberately conceal their identities and illegally purchase Australian properties.

He welcomed the possibility of using conveyance through electronic means to collect buyer’s identity information and verify their overseas residency status.

At the hearing, the committee learned from real estate brokers that many Chinese regarded the maximum fine of 8.5 yuan for buying a house in Australia for violation of regulations, as "the cost of doing business in Australia."

(The article is reproduced from the Internet)