Foreign Acquisitions and Takeovers Fees Imposition Amendment (Near-new Dwelling Interests) Act 2019

Overview

The Foreign Acquisitions and Takeovers Fees Imposition Amendment (Near-new Dwelling Interests) Act 2019 was enacted by the Parliament of Australia to amend the Foreign Acquisitions and Takeovers Fees Imposition Act 2015. This legislation was introduced to address the issue of foreign investment in near-new residential properties and its impact on housing affordability. The Act specifically targets the imposition of additional fees for near-new dwelling acquisitions, which are defined as acquisitions occurring within a specified period after the completion of the dwelling. By introducing these amendments, the policy objective is to mitigate the effects of foreign investment in the residential property market, particularly in the context of near-new dwellings, thereby contributing to the broader goal of reducing housing affordability pressures in Australia. The Act came into effect on 13 December 2019, aligning with the commencement of Schedule 3 to the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Act 2019. It includes amendments to the Foreign Acquisitions and Takeovers Fees Imposition Act 2015, introducing new fee structures for near-new dwelling acquisitions and residential land certificates. These amendments apply to acquisitions occurring on or after 1 July 2017, with specific transitional provisions for certificates issued prior to the Act's commencement. The overarching aim is to ensure that the additional fees appropriately reflect the economic impact of such acquisitions, thereby supporting housing affordability objectives.

Scope and Application

The Foreign Acquisitions and Takeovers Fees Imposition Amendment (Near-new Dwelling Interests) Act 2019 amends the Foreign Acquisitions and Takeovers Fees Imposition Act 2015 to introduce new fees relating to near-new dwelling acquisitions. This Act applies to developers who engage in the acquisition of near-new dwelling interests, with the amendments taking effect from 1 July 2017. These provisions are designed to address housing affordability issues by imposing fees on developers involved in the acquisition of near-new dwellings, thereby influencing market dynamics. The Act applies to acquisitions occurring on or after the specified date, subject to transitional provisions for certificates issued before the commencement of this Act. The Act's application is contingent on the commencement of related legislation, with its provisions coming into effect on 13 December 2019. The Act does not specify any exclusions, exemptions, or thresholds beyond what is outlined in the amended sections of the Foreign Acquisitions and Takeovers Fees Imposition Act 2015.

Key Provisions

The Foreign Acquisitions and Takeovers Fees Imposition Amendment (Near-new Dwelling Interests) Act 2019 (C2019A00126) amends the Foreign Acquisitions and Takeovers Fees Imposition Act 2015. The main changes introduced by this Act are found in Schedule 1, particularly Part 1, which amends the fees structure under the 2015 Act. Specifically, Section 6 of the 2015 Act is amended to include new fees for applications related to near-new dwelling interests (subsection 6(5)). The heading of Section 6 is changed from "Fees for applications for exemption certificates" to "Fees relating to exemption certificates" (subsection 1). New notes, 2A and 2B, are inserted in subsection 6(1) to clarify that additional fees are applicable to exemption certificates for new dwellings (subsection 3) and residential land (near-new dwelling interests) certificates (subsection 5). The application of these amendments is generally retrospective to near-new dwelling acquisitions occurring on or after 1 July 2017 (subsection 5). The Act imposes several obligations on developers and other entities involved in near-new dwelling acquisitions. Firstly, developers are required to pay fees at the end of each six-month period for each near-new dwelling acquisition that occurs during that period (subsection 6(5)). The fee amount is determined based on the fee that would have been payable for the acquisition if it had been a notifiable action (subsection 6(6)). This requirement applies to all near-new dwelling acquisitions occurring on or after the commencement of this Act, which aligns with the commencement of Schedule 3 to the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Act 2019, set for 13 December 2019. There are also transitional provisions for acquisitions occurring before the Act's commencement but covered by certificates issued before the Act's effective date, ensuring that developers are not unfairly burdened by retroactive changes (subsection 6(2)-(4)). Breach of the obligations and requirements set out in the amended Act could lead to civil and criminal consequences. The specific offences and penalties are not detailed in the text provided; however, under the general framework of the Foreign Acquisitions and Takeovers Fees Imposition Act 2015, non-compliance with fees and reporting obligations can lead to civil penalties. These penalties can include fines and, in severe cases, criminal charges, which might result in imprisonment. The exact penalties would be determined by the courts based on the nature and severity of the breach, but they are likely to align with the penalties specified in the primary Act or any related legislation. The Act’s provisions ensure that developers are clearly informed of their obligations and the consequences of non-compliance, thereby maintaining the integrity of the regulatory framework governing foreign acquisitions and takeovers in Australia.