Treasurer Jim Chalmers has announced delivering Labor’s election commitment to increase foreign investment fees and penalties.
From Friday 29 July, foreign investment application fees will double.
This will generate an additional $455 million in Budget revenue over the forward estimates.
Mr Chalmers however reiterated that Australia still welcomes foreign investment that is in Australia’s interests.
“Foreign investment application fees ensure the cost of administering the foreign investment framework is not borne by Australians, and penalties encourage compliance with our rules,”Treasurer further added.
“Australia continues to be an attractive place for investment. We have a lot to offer global investors including strong institutions, transparent regulations and a highly‑skilled workforce.”
“We welcome foreign investment in Australia because it plays a crucial role in Australia’s economic success and will continue to be important into the future.”
Treasury statements says that foreign investment fees will continue to make up only a small proportion of total foreign direct investment.
Treasurer Chalmers stressed that decisions like this are made necessary by the state of the Budget he has inherited from his predecessor.
“We will always put Australian interests first. That means ensuring Australians benefit from foreign investment in Australia,”Mr Chalmers added.
Under the current economic environment tackling housing affordability and helping more Australians into home ownership is a significant challenge and the Albanese government takes it seriously.
The Albanese Government has an ambitious housing reform agenda to address this challenge. Changes to foreign investment fees and penalties will help to deliver this reform agenda including Help to Buy a new program to assist Australians into home ownership.