A $1,500 application fee, but no higher property stamp duty for foreign buyers

Foreign property ­buyers in Australia will not be slugged extra stamp duty, as modelling by the Parliamentary Budget Office has concluded the charge would be self-defeating.

But the federal government is being asked to consider a $1,500 application fee to process their purchasing paperwork.

Kelly O'Dwyer's parliamentary committee has concluded the prospect of additional stamp duties would likely kill off the market for foreign buyers.

The stamp duty issue will not be formally recommended by the parliamentary committee into housing affordability and foreign ownership when it publishes its long-awaited report on Thursday, the Australian Financial Review has reported.

The review is expected to recommend the establishment of a single database of property purchases across states and territories and linking that information to customs data.

The Treasurer Joe Hockey recently said the federal government was prepared to go it alone after resistance from state bureaucracies.

The $1,500 application fee would raise $600 million over the first decade, News Ltd papers reported.

The funds would help track compliance for unauthorised acquisitions.