In total, 316 residential properties across Australia were sold by foreign nationals, who were found in breach of tax law.
Most of these properties were in Victoria, with 144 properties valued at a total of $162 million put on the market. NSW followed with 73, and Queensland with 64.
The property owners were captured as a result of ATO compliance action. The ATO has been in charge of residential real estate compliance for foreign nationals since 2015.
The 2017/18 was the busiest for the ATO, with with 131 properties worth $133.9 million sold by foreign nationals.
Since 2015, the ATO has also issued about 1500 penalty notices to those who didn’t obtain Foreign Investment Review Board approval before buying property, and for breaching a condition of previously approved applications.
Non-resident foreign persons generally need to apply for and receive foreign investment approval before purchasing any residential property in Australia.
You can read more about these rules and how they apply to your clients here.