Julie Collins (Franklin, Australian Labor Party, Minister for Small Business) Share this | Hansard source

I am summing up the debate around the Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2024 and the Treasury Laws Amendment (Foreign Investment) Bill 2024. I'd like to begin by thanking all the members who have contributed. We did get some spirited debate on these bills.

Certainly the Albanese government has a broad and ambitious housing agenda, to deliver more homes for Australians—more social homes, more homes to rent and more homes to buy. Together, the Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2024 and the Treasury Laws Amendment (Foreign Investment) Bill 2024 will implement the measures announced by the government in the 2023-24 Mid-Year Economic and Fiscal Outlook, to triple foreign investment fees for established dwellings and to double vacancy fees, to ensure foreign investment in housing is consistent with the government's agenda to boost Australia's housing supply.

Schedule 1 to the Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2024 will amend the Foreign Acquisitions and Takeovers Fees Imposition Act 2015 to increase the maximum fee cap and align indexation across all foreign investment fees. Schedule 2 to the bill will amend the Foreign Acquisitions and Takeovers Fees Imposition Regulations 2020 to triple foreign investment application fees for established dwellings and double vacancy fees for foreign investors who have purchased residential dwellings, new and established, since 9 May 2017.

Higher fees will encourage foreign owners to rent out properties, as well as incentivising foreign investment into new dwellings to increase Australia's housing stock. The higher fees for established dwelling applications will encourage foreign buyers to invest in new housing developments. As I said in the second reading speech for these bills, this will create additional housing stock and support economic growth. The increased vacancy fees will encourage foreign investors to make their unoccupied properties available to renters, providing more homes for Australians that need them.

Now, the government knows we need to make sure that foreign investors follow the rules. That's why part of our plan, announced in MYEFO late last year, is to give the ATO, the Australian tax office, an additional $3.5 million to up compliance. So we're acting by introducing this legislation, by boosting the Australian tax office enforcement and by encouraging more foreign investment in build-to-rent projects, to make sure that foreign investment supports this government's mission to make more homes available to more Australians.

The Treasury Laws Amendment (Foreign Investment) Bill 2024 will amend the International Tax Agreements Act 1953 to clarify that foreign investment fees and similar state and territory property taxes prevail over Australia's double tax agreements. This will provide certainty that such fees and taxes can continue to be imposed.

Together, these bills will support the integrity of the foreign investment rules, with the aim of encouraging foreign persons to purchase new properties to increase Australia's housing stock. The government's housing agenda represents the most significant housing reforms in a generation, after a decade of little action from the former government. With the passage of these measures through the House of Representatives today, we are adding to these reforms to ensure more Australians have a safe, affordable place to call home. I commend these bills to the House.

Bill read a second time.

Ordered that this bill be reported to the House without amendment.

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