Australia is all set to introduce much more strong new rules for its foreign property investors including latest fees.
The pressure had been put up on the foreign property investors of Australia as the latest legislation came into power from 1st December stating that the overseas applicants who wish to purchase a residential property should now has to pay a fee of AUS $5,000 for property value $1 million or below, and AUS$10,000 for the property valuing more than $1million and AUS$10,000 extra for every additional AUS$ 1million.
Overseas property purchasers who break the latest laws can be jailed for a period of three years or could be fined up to AUS$1,35,000. The property developers should also market their apartments in Australia.
The Productivity Commission (PC) who provides advice and research to the Australian Government on social, environmental and economical matters which affect the Australian welfare had said that the permanent visas shouldn’t be granted in exchange of property purchases.
The PC’s conclusion report is to come out in the month of March 2016, and they are still examining how the country can attract additional skilled migrants and If the nation shall restrict its intake by age.
According to PC Commissioner, Mr. Lindwall, the demographic work of the immigrant matters. Australia shall seek skilled migrants who could contribute to the workforce and assist to lessen the effects of our ageing population.
The report also argued that the Australian immigration system does not suits well to the approach based on the price, and the confidence of the people in the immigration system of Australia can be destabilized by such system.
By modifying the intake of migrants, the immigration system which is price based can minimize the demographic bonus from the migration, while understanding few of the benefits generally associated with the system based on market.
The selling of visas to the individuals who could pay without meeting the requirement will necessarily place the short term income raising aims ahead of medium to longer term social and economic considerations. It can put a negative net financial effect on the government.
Immigration is the important feature of the social and economic life of Australia with over a quarter of citizens from Australia being born abroad, and half have their parents born abroad.
According to the report from PC, the modifying background of international immigration outlines calls for the receptive and carefully balanced approach to the immigration policy.
The permanent and temporary immigration are handled as the separate procedure in Australia. The temporary migration often serves as the route to permanent immigration. In the year 2013-14, around 50% of all the permanent visas had gone to the individuals who are already in Australia on the temporary visa.
The foreign real estate investors are very popular with the Treasury of Australia. Overseas property investment was worth AUS$34.7 billion in the year 2013-14, approximately double with around AUS$17,6 billion prior to that year with many purchasers visiting from China.
The Australian government had replied to the increasing pressure by declaring that from 1st December 2015, it had planned to introduce the law under which the overseas property purchasers who break the law can be jailed for the period of three years or fined up to AUS$1,27,000.
The fresh regulation will bring in much-required income which is predicted at AUS$279 million in the period of four years.
According to the Former Australian Prime Minister, Tony Abbott, the steps were brought in to diminish the increasing prices of houses that has increased by 15% in a period of one year in Sydney in the year till April 2015.
Overseas foreign investors should also pay the application fee of AUS$5,000 on the property which valued up to AUS$1 million and more on the much more on the increasing price of the property, which can bring an additional AUS$200 million each year to the government.