December 2015 - Subject to the passage of legislation before Parliament, from tomorrow, 1 December 2015, there will be a fee for all foreign investment applications, including 457 visa holders who wish to purchase a house in Australia.
For a property where the value is up to AUD $1 million, the 457 visa holder will pay the Australian Government an extra AUD $5000 AUD. This fee will increase according to the value of the property purchased and the relevant fees are tabled below.
An interest in residential land valued at $1 million or less
($0 - $1,000,000)
An interest in residential land valued at over $1 million and under $2 million
($1,000,001 - $1,999,999)
An interest in residential land valued at $2 million and under $3 million
($2,000,000 - $2,999,999)
An interest in residential land – further $1 million increments
$10,000 per $1 million
Why is this happening ?
Due to the recent increased scrutiny of overseas citizens purchasing property in Australia without seeking FIRB (Foreign Investment Review Board) approval, it has come to the attention that there has been abuse of the process.
The Australian Government needs money and 457 visa holders are not permitted to vote and so the Australian Government have provided $47.5 million over four years to the Australian Taxation Office (ATO) to improve compliance and strengthen the enforcement of these rules.
What does this mean for HR Managers ?
Attached is a Fact Sheet provided by FIRB so please feel free to distribute this amongst your expat community
Please go to www.firb.gov.au/content/fees/FIF.asp for more information