Residential land

Last updated

Generally foreign investors will need to notify the Australian Taxation Office before acquiring residential land, regardless of value.

The Australian Taxation Office is responsible for compliance and enforcement activities for residential real estate and the vacancy fee.

The Australian Government’s policy is to channel foreign investment into new dwellings. The overarching principle is that a proposed investment should increase Australia’s housing stock. Investment into new dwellings creates extra jobs in the construction industry, helps support economic growth, and increases government revenues.

If you invest in vacant land for residential development, it will generally be conditional upon the construction being completed within 4 years and the land not being sold until the construction is complete.

If you purchase a new (or near‑new) dwelling, it is not usually subject to any conditions concerning its usage.

Property developers looking to sell their newly developed dwellings to foreign investors can notify us on behalf of their foreign customers.

If this has been done, the foreign investor will, generally, not need to submit an investment proposal for the acquisition.

From 1 April 2025 to 31 March 2027, foreign investors are generally prohibited from purchasing established dwellings. Limited exceptions apply, see the Guidance Note for further details.

When you buy or sell residential land you must notify the Register of Foreign Ownership of Australian Assets.

You will also need to pay an annual vacancy fee if your property is not residentially occupied or genuinely available for rent for more than 183 days (approximately 6 months) during a year.

If you buy residential land to use for a non‑residential purpose, such as, redevelopment for commercial use, it will generally be subject to development conditions, as assessed on a case‑by‑case basis.

 Residential real estate applications

Lodge a residential property application with ato.gov.au before you purchase residential real estate (housing) or land in Australia

Guidance Note 6: Residential land

Overview

A: When does a proposed investment in residential land require approval?
 
B: Acquisitions of vacant residential land
 
C: Acquisitions of new (and near‑new) dwellings
 
D: Property developers, and acquisitions of new (and near‑new) dwellings
 
E: Ban of purchases of established dwellings
 
F: Purchases of established dwellings for redevelopment
 
G: Purchases of established dwellings that support the availability of housing on a commercial scale
 
H: Purchases of established dwellings for certain Australian-based employees
 
I: Build to Rent developments
 
J: Vacancy fees
 
K: Integrated Tourism Resorts – grandfathered treatment of residential land
 
Further information
 

Download

Guidance Note 6: Residential Land [PDF  490 kB]

Guidance Note 6: Residential Land [DOCX  185 kB]