Temporary Residents buying property in Australia-Rules change
This was published in the AGE Newspaper just recently.
To avoid misquoting, I have uploaded the article as read.
THE Federal government will scrap its controversial new rules on foreign investment in real estate, and instead
tighten both the rules and their enforcement to head off a damaging political storm.
In a stunning about-face, Assistant Treasurer Nick Sherry has announced that temporary residents will now have
to seek approval from the Foreign Investment Review Board (FIRB) to buy any real estate in Australia.
Temporary residents will also be required to sell their Australian property when they leave Australia. And for
the first time, the FIRB will be given the means to ensure that the laws are enforced.
In a surprising move, the crackdown will also target vendors and real estate agents. Senator Sherry said they
would face civil penalties if they were involved in transactions that breached the Foreign Acquisitions and
Takeovers Act. His spokesman could not explain how vendors and real estate agents are expected to know the
immigration status of buyers.
The move comes barely three weeks after Senator Sherry denied that foreign investors were a factor in the
Australian real estate market.
Since then, the opposition has been demanding action and there has been a growing crescendo of complaints and
reports of massive buying by Chinese investors. Bloomberg newsagency reports that Chinese government companies
and sovereign wealth funds have expressed interest in investing in Australian real estate, after Beijing ordered
them to sell Chinese properties to bring down housing prices.
Senator Sherry now says he has consulted the community and the real estate industry, and concluded that the
foreign investment regime needs to be strengthened, ”particularly in relation to the arrangements for temporary
residents”.
”International investment that boosts the numbers of houses available for people to rent is a good thing, and
temporary residents living here should, within very strict rules, have the opportunity to buy a home. ”But the
rules have to be tough enough to ensure that the system works in that way, and that’s what we’re delivering.”
TIM COLEBATCH
April 24, 2010
The AGE Newspaper
Sweeping changes to GSM – 08 February 2010
February 2010
Significant changes to the General Skilled Migration Program were announced on 8 February 2010 by Senator Evans,
Minister for Immigration and Citizenship.
The changes are aimed at delivering a demand rather than a supply driven skilled migration program that meets
the needs of the economy in sectors and regions where there are skill shortages.
The major changes involve:
- The list of occupations in demand will be tightened so only highly skilled migrants will be eligible
to apply for independent skilled migration visas. - The points test used to assess migrants will be reviewed to ensure it selects the best and brightest. This
will include skills assessment requirements for GSM applicants nominating a trade occupation. - Certain occupations to be capped to ensure skill needs are met across the board.
- Offshore General Skilled Migration (GSM) visas applications made before 1 September 2007 (approx 20,000)
will be cancelled and applicants will receive a refund of fees paid.
The Migration Occupations in Demand List (MODL) and Skilled Occupation List (SOL) will be replaced with a new list
of targeted occupations determined by ‘Skills Australia’.
As the new SOL will be a comprehensive, targeted list, the current Critical Skills List will be phased out and
revoked. The new SOL will come into effect from mid-2010 and will apply to all applicants lodging visa
applications made on or after this date.
Under the changes, individual State and Territory migration plans will also be developed so States and Territories can prioritise in demand occupations at a regional level.
Migrants nominated by a State or Territory Government under their State Migration Plan will be processed ahead
of applications for independent skilled migration.
