Foreign Ownership

We’ll protect the Australian housing market from excessive foreign ownership, ensuring that Australian homes are available and affordable for Australian citizens and residents. This policy aims to maintain the integrity of the local housing market and prevent housing speculation by foreign investors that drives up property prices beyond the reach of hard working Australian families.

1. Ban on Foreign Ownership of Residential Real Estate
   • Immediate Ban on the purchase of residential real estate by foreign nationals and foreign entities, including individuals and companies based outside of Australia, for existing residential properties.
   • Exemptions will apply solely to foreign nationals who are permanent residents or Australian citizens (including those with dual nationality), and foreign nationals living in Australia on long-term work visas who intend to reside in the property they purchase.
2. Foreign Investors Only Allowed to Buy New Builds
   
   • Foreign investment will be permitted only in newly constructed properties that are not yet sold, with a focus on increasing the housing supply.
   • Foreign buyers of new property must also commit to occupying the property for a minimum of five years to ensure that new developments help meet demand from Australians and not simply become an investment tool.
3. Review and Reallocation of Land for Housing Development
   • Large-scale residential developments and vacant land owned by foreign investors will be reviewed to ensure they are contributing to the housing market. If not, the government will have the ability to acquire such land for public or affordable housing projects.
   • Establish policies for land use redistribution to ensure the land is used for the benefit of local communities, with a particular focus on urban growth areas and affordable housing needs.
4. Transparency and Public Reporting
   • The government will maintain annual transparency reports on foreign ownership of residential real estate, tracking the percentage of properties owned by foreigners, and making this data publicly available for informed policymaking and public awareness.
   • A national foreign ownership cap will be set in consultation with housing experts, urban planners, and economists to limit the total percentage of Australian housing stock that can be owned by non-residents.

Promoting Housing for Homebuyers, Not Speculators

Negative gearing has been one of the key drivers behind the housing affordability crisis in Australia. By creating an environment where real estate investors can receive substantial tax breaks, the system has incentivised speculative behaviour rather than increasing the overall housing supply. Eliminating negative gearing shifts the focus back to making housing affordable for Australians who want to live in their homes.

1. Protecting Housing Affordability for Australians

   • Foreign ownership has been a key driver of rapidly increasing housing prices, especially in major cities like Sydney and Melbourne. By limiting foreign ownership, we ensure that housing is more accessible to Australians, particularly first-time buyers, rather than being a market for international speculators.
2. Preventing Market Distortion
   • Excessive foreign ownership distorts housing markets, inflating prices and reducing local access to homeownership. This policy aims to correct this imbalance by prioritising the needs of local residents and workers who seek affordable and stable housing.
3. Fostering Long-Term Domestic Housing Growth
   • By focusing on new builds for foreign buyers, we can stimulate the construction of housing that meets growing demand, while maintaining protections for local buyers. It encourages sustainable and responsible growth in Australia’s housing sector, prioritising long-term benefits over short-term speculative gains.
4. Reducing Speculation and Increasing Local Control
   • Foreign ownership is often linked to housing speculation, with investors purchasing properties for capital gain rather than to provide homes. This policy will reduce speculative activity and give local communities more control over their housing markets.