Labor pitches two-year ban on foreign property investors

Labor is matching a key opposition housing policy as the parties gear up for a fiercely fought federal election.

Labor will slap a two-year ban on foreign investors buying existing Australian homes, matching a key opposition housing policy pitched last year.

The move, formally unveiled on Sunday, will kick in on April 1 and apply to all foreign investors, including foreign-owned companies and temporary residents.

It comes as the Albanese government and the Coalition gear up for fiercely fought election dominated by housing affordability and cost-of-living.

But foreigners account for a fraction of owners in Australia’s supply-starved property market, sitting around 2 per cent.

Nonetheless, Clare O’Neil said ahead of the announcement on Sunday it was “an important move”.

Housing Minister Clare O’Neil says ‘there is no silver bullet’ for the housing crisis. Picture: NewsWire / Martin Ollman

“It’s not a silver bullet to the housing crisis, because there is no silver bullet,” the Housing Minister told Sky News.

“But I really firmly believe that given the housing pressures that Australians are facing today, we need to orient the entire efforts of the Australian government around security of housing for Australians, and, wherever possible, home ownership for a broader range of young Australians.

“This is a good policy.”

Federal Minister for Housing and Homelessness Clare O’Neil announced the clamp down in Melbourne on Sunday. Picture: NewsWire/Ian Currie

Ms O’Neil said the move was expected to free up “thousands” of homes for Australians, noting foreign investors purchased more than 1,800 existing homes in the the 2022-2023 financial year.

Peter Dutton announced a near identical policy in his budget reply last year.

Labor dismissed it at the time, with Treasurer Jim Chalmers saying it was “not thought through”.

Like the Coalition’s plan, there are exemptions for foreigners looking to invest in projects with more 20 properties, such as apartment towers or housing estates.

The Albanese government has pledged to build 1.2 million new homes. Picture: NewsWire / Flavio Brancaleone

It adds to other Labor polices, including the $10bn Housing Australian Future Fund, which aim to rapidly boost dwellings across the country.

While other housing policies, such as Help to Buy and Build to Rent, are targeted at getting first home buyers on the property ladder and ensuring people can find affordable rentals.

Originally published as Labor pitches two-year ban on foreign property investors