Australia taxes foreign home buyers as affordability bites

Sydney is imposing new taxes on foreigners buying homes amid growing concerns that a flood of mostly Chinese investors is crowding out localsSydney is imposing new taxes on foreigners buying homes as concerns grow that a flood of mostly Chinese investors is crowding out locals and killing the “Great Australian Dream” of owning property. “The governments want to respond to a perception about housing affordability and the impact of foreign investment on that,” KPMG Australia’s indirect tax specialist Michelle Bennett told AFP. Last year, leading apartment developer Lend Lease sold out more than Aus$600 million (US$445 million) worth of new units in Sydney’s Darling Harbour in under five hours, with The Australian Financial Review reporting that one-third of buyers were foreign.

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