Australian homes purchased by foreign investors over the past 10 years will be randomly audited by the Australian Taxation Office (ATO) as part of the crackdown on foreign investment.

2. Crackdown on Foreign
Investors

4. Australian homes purchased by foreign investors over
the past 10 years will be randomly audited by the
Australian Taxation Office (ATO) as part of the
crackdown on foreign investment. ATO now has
greater access to investor information and has
commenced processing foreign investment data
relating to residential real estate.

5. We expect that by 1 December 2015 the ATO will
become responsible for all residential land
acquisition functions of the Foreign Investment
Review Board (‘FIRB’), namely audit, compliance
and enforcement functions. This will mean that
foreign investors who purchase property without
obtaining valid FIRB approval are now more likely
to be caught by the ATO and subsequently
prosecuted.

6. From December 1, criminal penalties will be
increased to $127,500 or three years
imprisonment for individuals and to $637,500 for
companies who are found to breach Australia’s
foreign investment rules.

7. The government is also introducing a civil penalty
to capture any capital gain made on divestment of
a property to ensure people who break the rules
will not profit.

8. Real estate professionals who knowingly assist a
foreign investor to breach the rules will now also
be subject to civil and criminal penalties, including
fines of $42,500 for individuals and $212,500 for
companies.

9. Amnesty period for voluntary disclosure
The Australian government has announced a
moratorium to encourage people who have made
unlawful purchases to turn themselves in.
Investors will have until November 30 to come
clean and sell their properties or face
potential prosecution.

10. Under the amnesty there will be reduced penalties
for investors that voluntarily tell the ATO they have
breached the rules. They will be forced to sell their
properties, but they will not be subject to criminal
prosecution.
The amnesty will also mean that they have 12
months to divest – rather than a shorter period at
the discretion of federal Treasurer.

11. What foreign investors need to do
Any foreign investor that has purchased a
residential property without FIRB approval should
come forward and disclose any possible breaches
to avoid hefty penalties.

12. Foreign investors will also be required to sell their
properties.
Please contact our office if you have any query
regarding your investment in Australia.
Please notice, prosecution will be commenced by
the ATO. As a former prosecutor working for the
ATO, Adrian has significant prosecution
experience and knows how the ATO operates. His
experience is a significant asset.

13. For more details
Visit us @
http://www.bambricklegal.com.au/
Or Call us Today!
(08)8362 5269