The Australian government is warning real estate agents to expect heavy fines and convictions as it cracks down on foreign investment in real estate. The Australian Taxation Office has begun data matching over 30,000 records dating back to 1985 to investigate agents and foreign investors who may have assisted in illegally acquiring Australian property. Stricter new laws include jail time of up to three years and fines up to $637,500 for individuals and companies involved in breaking foreign investment rules.

1. Australian Government warns real estate agents to
brace for heavy fines and convictions.
Real estate agents from around the world that have assisted foreign investors acquire property illegally, are
under the micro scope by the Australian Taxation Office (ATO).
As the Australian government strengthens the rules around foreign investment in real estate, the ATO has
commenced a data-matching program that will trawl 30,000 “entities" records held by other government
agencies, dating back to 1985.
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The FIRB amnesty expired on November 30. The Australian Federal
Government has revealed stricter penalties to ensure that foreign
investors and intermediaries – which include real estate agents and
lawyers – do not profit from breaking the rules.
The new Australian laws that criminalise this behaviour of illegal overseas
investment.
Three-year jail term;
$135,000 fine for individuals;
$637,500 fine for companies;
The property owner Civil Penalty increased to either the capital gain or 25
per cent of the value of the property – whichever is greater. Company
Civil penalties are up to five times more severe.
The Australian Government is also creating a comprehensive land register framework to provide increased
scrutiny around foreign ownership in Australia.
Real estate agents and foreign investors that are under investigation, would not be aware that
they are being investigated," Scott O.Talbot said, “unethical selling agents will be hunted down
and prosecuted”.
The illegal overseas investment crackdown is the ‘tip of the iceberg’ with neighbours reporting neighbours
and, agents reporting agents. There will be no escape from sophisticated illegal real estate purchases that
have used trusts to conceal their ownership of established properties.
If you suspect fraud by an real estate agent or overseas property owner, contact the ATO at: https://
www.ato.gov.au/about-ato/about-us/contact-us/report-fraud,-tax-evasion-or-a-tax-planning-scheme/