Australia Looks to Tax Ghost Houses

May 2, 2017 Taxation in Australia

Ghost house tax in AustraliaCANBERRA – The Australian government is hoping to use taxes to address the issue of foreign buyers hoarding investment properties.

The government of Australia could enact a new tax on any vacant properties owned by foreign investors.

The new tax would become part of the conditions imposed by the Foreign Investment Review Board when a foreign investor attempts to purchase property in the country.

Currently the tax is expected to be set at approximately AUD 5 000.

The money raised from the tax would go to fund the government’s housing affordability programs.

The new “ghost house tax” is expected to help alleviate the country’s overheated housing market, as it will encourage foreign investors to either rent out their properties or to sell them entirely.

Some experts believe that properties will be monitored for occupation via their daily water usage, which will be much lower in an unoccupied home.

The new tax is expected to work in tandem with the government’s planned housing-affordability packages, aimed at helping first-time buyers purchase their own home and property.