Australia to impose huge fee on foreign owners leaving their homes empty

Melbourne/Sydney: The government in Australia will impose huge fees on foreign buyers of existing homes against leaving them empty, the news agency AFP reported.

The centre-left Labor government will introduce legislation next year in order to ease a rental crisis in the nation as renters struggling to find homes to live.

This decision comes amid reports of rental prices peaking to 7.6 percent this year marking the sharpest rise in 14 years.

Echoing the growing concerns in the nation of homes remaining empty while many struggle to find homes, Treasurer Jim Chalmers said ‘There are too many properties empty around Australia.’

He was quoted as saying to Sky News in Australia that ‘There are not enough homes available to Australians who desperately need them.’

The government reportedly is aiming to push foreigners to invest in new housing developments rather than buying existing ones.

Foreigners are now allowed to buy existing homes in Australia for work or study and have to sell them when they leave.

In addition, foreigners buying existing homes have to pay a foreign investment fee which varies according to home prices.

The new scheme will have the fee tripled in the event of foreign owners leave their homes empty.

Alongside, the homes remaining vacant for more than six months will ‘face a higher annual vacancy fee’.

The government is now mulling over to double that fee under the new plan, according to the report.

The overall effect of the plan on foreigners leaving their existing homes empty would be six-fold increase in annual fees.