REINSW welcome foreign investment reform

Foreign investment legislation introduced into parliament last week implementing a penalty increase from $90,000 to $135,000 for serious breaches of real estate rules is welcome news, according to REINSW president Malcolm Gunning.

The REINSW International Chapter has been alerted that many are being told to buy a property first and them make an application to the Foreign Investment Review Board second, he said, adding most foreign investors don’t come into Australia with the intention of breaking the law.

“They tend to seek advice from someone who they have been referred to who speaks their native tongue and this is where the problem lies because they are often taken advantage of and given incorrect advice.," he said.

“A major issue with foreign investment in the past was due to inadequate policing. We welcome the fee of $5,000 for properties valued at $1 million or less and higher fees to more expensive residential and agricultural properties as well as commercial real estate and business applications.

“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."