Government calls for foreign investment reform submissions

Further developments into possible legislation tightening foreign investment in residential real estate have been made with stakeholders invited to make a submission into the substantive Bills making up Treasury's Exposure Draft into implementing foreign investment reform.

Treasury are asking for submissions into the Fees Imposition Bill, with the eventual reforms will be given effect by the Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015, the Register of Foreign Ownership of Agricultural Land Bill 2015 and the Foreign Acquisitions and Takeovers Fees Imposition Bill 2015.

According to the submission the government aims to promote greater transparency through a lands register, implement a simpler foreign investor framework, transfer all residential real estate functions to the ATO and enforce stricter penalties for illegal foreign investment.

CoreLogic RP Data's senior research analyst Cameron Kusher recently stated that while housing may be looking expensive to locals, the declining Australian dollar means that it may be looking more attractive to foreign buyers.

The Exposure Drafts and Regulatory Impact Statement of legislation designed to tighten foreign investment rules can be read here, with submissions open up until Friday 17 July.