New Treasury data shows that the Albanese Government’s reforms to streamline and strengthen our foreign investment framework are already delivering results.
These reforms are all about attracting the investment our economy needs while protecting our national interest.
As part of the reforms, Treasury adopted a new performance target to process 50 per cent of proposals approved within 30 days.
While only formally in place from 1 January this year, the proportion of proposals approved within 30 days for the period from October to December 2024 has already jumped to over 50 per cent, more than double the rate when we came to office and up from 35 per cent in 2023–24.
These numbers are preliminary and might jump around a bit, but the data shows we are making meaningful progress on our foreign investment reforms.
We’re making foreign investment decisions much faster where we can and we’re being tougher where we need to be.
At the same time we are making the system more transparent and easier for investors to navigate.
Today, the Government has published updated Guidance Notes to implement key foreign investment improvements and provide greater clarity to investors.
The updated Guidance Notes:
- provide information about foreign investment in new and established Build to Rent developments, including lower application fees for these types of investments to support more housing supply.
- set out eligibility criteria for partial refunds of application fees for unsuccessful proposals in competitive bid processes. More certainty on refunds will encourage more participation by foreign investors in these processes.
- clarify tax arrangements that will attract greater scrutiny in the foreign investment assessment process to ensure that foreign investors pay their fair share of tax.
These steps are in addition to our other recent measures to ease pressure on the housing market.
We announced in February a ban on foreign purchases of established dwellings for at least two years starting on 1 April this year.
The ATO and Treasury will also adopt a stronger compliance approach to land banking to ensure that foreign investors develop vacant land within reasonable timeframes.
Our reforms are delivering faster decisions, clearer rules, and stricter scrutiny when necessary.
We’re streamlining and strengthening the system so it works for Australia’s economy while safeguarding our national interest.
The updated Guidance Notes are available at the Foreign Investment website.