Nearly 200 breaches of foreign investment being investigated

Nearly 200 breaches of foreign investment being investigated

Federal Treasurer Joe Hockey has confirmed investigations are underway into 195 cases, where foreign investment rules on residential real estate may have been breached.

The investigation by the Australian Taxation Office (ATO) comes a month after the Federal Government announced plans to crack down on rogue foreign investors.

It is part of the government’s move to reassure home buyers that house prices are not being driven up by overseas investors.

Mr Hockey says the values of the properties being investigated range from $300,000 to over $40 million.

“Unless you have permission, as a foreigner you are not allowed to buy existing residential property in Australia,” he said.

“There is a moratorium until the 1st of December to come forward if you believe you may have unlawfully purchased residential property in Australia.”

Mr Hockey says the current investigation is just the “tip of the iceberg” in terms of foreign investment breaches.

“We have put very significant additional resources into the investigations, building up to 60 people by the 1st of July,” he said.

“The Australian Taxation Office is finding increasingly that there is the likelihood of taxation fraud as well as unlawful purchase of real estate by foreign entities.”

Mr Hockey is warning anyone who is knowingly breaching the law to come forward immediately.

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Libby Dreyer
Libby Dreyer 1729 posts

Libby has worked as a Senior Journalist at National Radio News since February 2011. She graduated with a Bachelor of Journalism from the University of Canberra in December 2010.

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