Coalition Senator Kelly O'Dwyer, chairman of the Parliamentary Investigation Committee responsible for reviewing overseas investment in the Australian real estate market, revealed on the 13th that it may recommend that the federal government impose more serious measures on overseas investors who violate Australian real estate ownership regulations. The penalties include the penalties for the sale of real estate profits will be fined, and their immigration records will be affected.
The penalties are in line with the property value
It is reported that overseas investment into the Australian residential market has always been the focus of investigation by the Parliamentary Investigation Committee led by Ordwell. The committee has decided to postpone the submission date of the proposal to the end of November to allow time for the state governments to negotiate the implementation of a unified national real estate ownership registration system.
Ordwell revealed to the media that the parliamentary investigation committee is considering increasing penalties for overseas home buyers who flout Australia's real estate-related laws and regulations, so that the penalties are proportional to the value of the property they buy.
Ordwell pointed out: “According to current regulations, the maximum penalty for overseas home buyers who purchase illegally is about A$8.5, but many people tell us that overseas home buyers only treat these fines as the cost of doing business.”
In addition to the possible increase in fines, the parliamentary investigation committee may also recommend that the federal government forcibly deprive property buyers of illegal overseas home buyers of their profits. Ordwell said that the current regulations that allow overseas home buyers to maintain their profits "are obviously a wrong stimulus that encourages bad behavior."
Insufficient foreign investment data is criticized again
In addition, Ordwell also criticized the overseas investment data collection performance of the Foreign Overseas Investment Review Board (hereinafter referred to as FIRB) again, saying that the agency assumes that all overseas home buyers abide by the regulations when submitting home purchase applications, resulting in errors in relevant data. "Since 2006, I have never seen FIRB issue any accusations related to illegal property purchases by overseas home buyers. I am very confused about FIRB's existing processing procedures."
According to current regulations, temporary resident visa holders must sell their property in Australia when they leave Australia. However, the Ministry of Finance, which is affiliated to FIRB, said in response to the Parliamentary Investigation Committee that "it is not possible to determine the number of overseas investors who voluntarily sell real estate in the present time."
Ordwell said: "We told them that there is more time now, and we look forward to their response again."
Chinese real estate investment in Queensland surges
According to data, in the last fiscal year, cash-rich Chinese home buyers' investment in real estate in Queensland increased sharply, reaching a record A$4.62 million.
Among them, China's real estate investment in Brisbane increased from A$9600 million in the previous fiscal year to a record A$1.85 million. However, in terms of the total scale of investment in Brisbane, US home buyers ranked first, with an investment of 2.44 million Australian dollars last fiscal year, an increase of 12% in 60 months.
But overall, China has become the largest source of overseas investment in the Queensland real estate market. On the Gold Coast, the total investment of Chinese home buyers ranked first among all overseas home buyers, reaching 1.96 million Australian dollars, an increase of 2012% from the 2013-5.9 fiscal year.
But in the tourist city of Cairns, the investment of Chinese homebuyers has almost halved to A$450 million, while the investment of home buyers in Singapore has reached A$9700 million and that of Malaysian buyers has invested A$3200 million.