Under the reforms, foreign investors purchasing established homes will face:

• Triple the application fees when purchasing established homes

• Double the vacancy fees if properties are left empty

• A combined sixfold increase in penalties for vacant established dwellings

For example, foreign investors buying a $1.1 million established property will now pay $84,600 in application fees (up from $28,200) and face potential annual vacancy fees of $169,200 if left empty.

At the same time, Labor is encouraging investment in new housing supply by cutting application fees for Build to Rent projects to the lowest commercial level, supporting the development of more long-term rental options for Australians.

The government has also enhanced the ATO's compliance regime to ensure foreign investors follow the rules, including requirements to sell properties when leaving Australia if they haven't become permanent residents.

I try to avoid talking about any particular state achievements on this site (or it'll take forever), but it's worth noting for Vic:

The Victorian Labor Government has significantly expanded its Vacant Residential Land Tax program from 1 January 2025 to help address housing supply issues across the state. Previously limited to inner and middle Melbourne, the tax will now apply to residential properties left vacant across all of Victoria.

Key features of the expanded program include:

• A new progressive tax rate structure:

  • 1% of the property's capital improved value in the first year

  • 2% in the second consecutive year

  • 3% in the third consecutive year and beyond

    
    

• Coverage extended beyond Melbourne to include all Victorian residential properties (except alpine resorts)

  
  

• Properties are considered vacant if unoccupied for more than six months in a calendar year, either as a principal place of residence or under a genuine lease arrangement

The government has also announced that from 2026, the tax will apply to undeveloped residential land in metropolitan Melbourne that has remained vacant for five or more years.

This expansion of the VRLT program represents a significant strengthening of Victoria's housing supply initiatives, building on the original scheme introduced in 2018.

[1] https://ministers.treasury.gov.au/ministers/jim-chalmers-2022/media-releases/higher-foreign-investment-fees-housing

[2] https://www.ato.gov.au/individuals-and-families/investments-and-assets/foreign-investment-in-australia/vacancy-fee-return-for-foreign-owners

[3] https://www.sro.vic.gov.au/vacant-residential-land-tax