Foreign real estate buyers to pay fees of at least $5,000 under foreign investment review system

At a press conference in Sydney, the Prime Minister and Treasurer announced a raft of changes to laws that govern the ability of foreign buyers - temporary residents and non-residents - to purchase Australian residential property.

Unveiling the key contents of a consultation paper, Treasurer Joe Hockey said the proposed measures were designed to restore confidence in a foreign INVESTMENT review system that had not prosecuted anyone for breaching the rules since 2006.

"For any foreign investor that wants to buy a residential property under $1 million, there will be a $5,000 application fee," he said.

"Over $1 million, it will be $10,000 for every extra million dollars in the purchase price.

"Secondly, there will be a new register set up so that we know how many foreign residential and agricultural property owners are in Australia, who they are, which is a very important form of reassurance to the Australian people.

"And, if anyone does break the law then we can fine them up to 25 per cent of the value of the property as well as forcing them to sell the property."

The fees outlined by the Government are much higher than those recommended in a report by the House of Representatives Economics Committee, which suggested an administrative charge of up to $1,500, with the money raised to fund the Foreign INVESTMENT Review Board (FIRB).

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