Australian authorities are considering placing additional charges on foreign buyers in an attempt to cool its soaring property market. A parliamentary committee has recommended an AUS$1,500 (£820) additional fee for properties purchased by foreign investors.
The move has been prompted by concerns over the impact of overseas investors – in particular cash-rich Chinese – who have fuelled substantial rises in property prices across the country.
The committee criticised authorities for failing to control the recent boom and for not enforcing existing regulations which limit foreign investment to new build and off-plan property. It is thought that many overseas buyers bend the rules by purchasing resale homes through a family member, with the possibility of a fine of AUS$85,000 (£46,000) considered simply a cost of doing so.
Not a single foreign investor in Australia has been prosecuted or penalised since 2008.