In an article by dailytelegraph.com, it was reported that service providers of real estates have warmly welcomed new legislation, which aims to change the rules and regulations on foreign investment.
Just a week ago, Treasurer Joe Hockey, introduced to parliament the new reforms on foreign investment. And as reported in its government website, the chiefest goal of these reforms is to increase the penalties that will be imposed on foreign investors who breach any investment rules. The new reforms are practically aimed to ""ensure that continued foreign investment in Australia will benefit all Australians," Mr. Hockey explained.
An increase on penalties from $90,000 to $135,000 for serious breaches of real estate laws is included in the said reforms. Lawyers who deliberately help foreign investors break investment rules, conveyancers, selling agents and migration agents will also be subject to civil and criminal penalties. According to Malcolm Gunning, the President of Real Estate Institute of NSW, the revisions are the first ever major change to foreign investment rules implemented in almost 40 years. The new reforms will definitely reassure a better policing of purchases made by foreign investors. "The previous fines were not significant and these increases will act as a disincentive," Mr. Gunning said.
He further said that "Few foreign investors buy property in Australia intending to break the law, but many are often given incorrect advice from service providers offering advice in their native tongue. Many are being told to buy a property first and [make] an application to the Foreign Investment Review Board second."
He strongly proposes to the federal government the promotion of the new legislation and its ramifications by means of disseminating said reforms through local foreign language newspapers as well as through major overseas newspapers.
Also welcomed by the institute is the proposed '$5000 application fee' for foreign investors who want to make a purchase on properties appraised at $1 million or even less.
"We support new compliance powers granted to the Australian Taxation Office, which we believe is the appropriate place to find such transactions, and additional powers to the Foreign Investment Review Board," Mr. Gunning concluded.
