The first fines order for breaching Australia’s foreign investment rules was issued by the Federal Court of Australia, resulting in fines of $250,000. The foreign investor was penalized for buying several properties on the outskirts of Melbourne without receiving clearance from the Foreign Investment Review Board.
The foreign investor purchased 4 properties without permission and simultaneously owned 2 established properties at once, in violation of the Foreign Acquisitions and Takeovers Act 1975.
Foreign investors are restricted in the type of residential property they can acquire in Australia and must apply before doing so. Foreign investors found guilty of violating the Foreign Acquisitions and Takeovers Act face civil penalties to allow the government to recoup the capital gain or 25% of the value of the property, whichever is greater. higher.
Source: Purchases of residential real estate by a foreign investor result in a penalty of $250,000, [ATO media release]of April 11, 2022.
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