While Australia needs foreign investment to help power the economy, higher application fees for foreign investors are expected to deter them from buying here.
Property Council of Australia chief executive Ken Morrison says the July 29 doubling of foreign investor fees is not a solution to fix housing affordability issues in Australia.
“The Property Council supports moves to tackle the challenge of housing affordability and supply but increasing costs on and deterring investment in the creation of new housing works against this goal,” he says.
The fees vary depending on properties, but for example investors will now pay $13,200 for properties which are priced $1 million or less.
Morrison says all the fee increases do is make Australia seem hostile to outside investment.
“We should be welcoming foreign investment with open arms, not sending the opposite message by doubling these fees which are already much larger than our competitors and apply to far more transactions,” he says.