foreign buyers Archives - Malcolm Roberts

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Australian Houses for Australians – Ban Foreign Ownership!

The government says less than 1% of houses are bought by foreigners. I don’t believe them. State governments say it’s at least double that, real estate agents say it’s 10%!

I have been asking for detailed data on how they get to that number for 9 months now without answers.

The government is hiding the true extent of foreign ownership from Australians while we’re in the middle of a housing crisis.

Transcript

Senator ROBERTS: My question is to the Minister representing the Treasurer, Senator Gallagher. Overwhelmingly, Australians don’t believe foreigners should be allowed to own residential property in our country. I first asked at Senate estimates in November last year how many potential foreign buyers the ATO is detecting through its data-matching program? The government failed to answer. In February, Senator Bragg asked and was given no answer. In June estimates, I asked again and did not get an answer. Answers to my questions on notice for how many potential foreign buyers are detected are now overdue, again. Minister, why is your government hiding from the Australian people the data on potential foreign buyers of residential property? And when will you actually answer the question I’ve been asking for nine months?

Senator GALLAGHER: I recall you asking these questions, Senator Roberts, and I understood they were answered at the time by officials when I was sitting at the desk. If there have been follow-up questions you have asked notice that have not been answered, I can certainly follow that up. I think the evidence we gave during Senate estimates was that foreign investment plays an important role in bolstering Australia’s housing stock and creating additional jobs in the construction industry. But it is monitored very closely for good reason. It is tightly regulated, with foreign persons generally requiring foreign investment approval before acquiring an interest in residential land, regardless of its value, with a few exceptions. Foreign investors make up a very small proportion of the total Australian residential property market, accounting for approximately 0.93 per cent of new and established dwelling purchase transactions in 2022-23. Out of 479,257 transactions, based on ATO data from 2022-23 only 4,463 transactions were by foreign investors. It is a very small component—less than one per cent—of new and established dwelling purchase transactions in the 2022-23 financial year. I think senators have raised this through estimates as something they are interested in—raising concerns about foreign investors squeezing out local residents from being able to purchase housing. But the evidence would show that it’s a very small component of the residential property market in the transactions that are being monitored, as was explained in estimates by the ATO. (Time expired)

The PRESIDENT: Senator Roberts, first supplementary?

Senator ROBERTS: The New South Wales state government reported more than twice the number of overseas purchases of property that the Foreign Investment Review Board recorded in 2021. The board claims foreigners buy less than one per cent of residential property—and you just confirmed that. Yet in the first quarter NAB property survey, real estate agents say they’re selling 10 per cent of Australian housing to foreigners. Minister, if you have confidence in the Foreign Investment Review Board, why won’t you hand over the data?

Senator GALLAGHER: Again, I’m not sure which part of the data hasn’t been answered. I was sitting at estimates when you were given figures, Senator Roberts, so I’m not sure which data is the data you’re seeking. The ATO data I just read out—and I can provide this in writing to you—shows that it is 0.93 per cent for the 2022-23 financial year, and that it has come down, as I understand it, from a peak in 2015-16. The ATO do residential real estate compliance investigations—so they follow this up and check that people are compliant with the requirements of foreign ownership of residential property. They identified 428 properties for compliance, they did 410 investigations and found 145 properties in breach, and 55 of those resulted in— (Time expired)

The PRESIDENT: Senator Roberts, second supplementary?

Senator ROBERTS: Minister, you want foreign investment, yet foreign ownership is against Australians’ interests. Minister, this country is in a housing crisis. When will you ban foreign ownership of residential real estate and put Australians in Australian houses first?

Senator GALLAGHER: We’re not going to do that, Senator Roberts. The numbers show we need good strong rules around it, and there are strong rules around it. We need compliance with those rules, and there are good compliance processes. It’s less than one per cent, and this country has benefited from foreign investment. We benefit in terms of our economy and in terms of jobs—

Senator Whish-Wilson interjecting—

The PRESIDENT: Senator Whish-Wilson, order! Please continue, Minister.

Senator GALLAGHER: So it isn’t something we are seeking to ban. It would help if some of our housing programs, which are currently stalled in the Senate, were given approval by the Senate because then we could build more supply, which is the actual issue. I know there wants to be a lot of distractions about who’s to blame, and it’s easy to blame foreign ownership. The statistics don’t support that. I say to the Senate that there are a couple of bills that are stuck in this chamber that would help people into home-ownership and help increase the supply of housing in this country, and I say: let’s get on with that job

Questions on notice from 17 June 2024. Still unanswered and overdue as of 21 August 2024

Q0214_Economics_2024-25Budgetestimates_Treasury Download

Q0212_Economics_2024-25Budgetestimates_Treasury Download

August 22, 2024/11 Comments/by Senator Malcolm Roberts

How Many Foreign Buyers Are Really Snatching Up Australian Homes?

National, Senate Estimates

Since November, I have been trying to get a very simple answer out of the Australian Taxation Office (ATO): How many potential foreign buyers are they detecting?

The ATO runs a data matching program that checks the details of more than 2.4 million sellers and buyers to detect if they might be foreign.

The ATO claims only 1% of purchases are foreign, but they won’t tell me how many of those 2.4 million matches they get are flagged as potentially foreign. Watch as they again refuse to tell me how many foreigners they identify in the 2.4 million records.

They claim to have manually checked over 230,000 records every year that can’t be automatically matched to confirm whether they are Australian. With other evidence like the NAB property survey indicating up to 11% of new housing stock is purchased by foreigners, I believe the ATO figures are completely understating the level of foreign buying in the country.

Transcript

Senator ROBERTS: Thank you for appearing again tonight, and congratulations to you, Mr Heferen. I don’t think we’ve seen you since your appointment. My first question is about foreign buyers of real estate. Radio 2GB reported in April that foreign buyers accounted for 11 per cent of newly built homes in the final quarter of last year. This is a disaster for Australian homebuyers. Can you please provide that data for each quarter over the previous 12 months—the proportion of newly built homes bought by foreigners?

Mr Thompson: I think the 2GB article would have been using the National Australia Bank—

Senator ROBERTS: That’s my understanding.

Mr Thompson: As I think I’ve talked about at the committee before, there are a number of differences between the National Australia Bank survey and our data. So the National Australia Bank’s data is from a survey,
so it asks real estate and other real estate professionals to estimate. I think the exact question in that survey is about overseas buyers. Our numbers are coming from state and territory land title offices, which are matched
against Home Affairs data and Australia Electoral Commission data. There is a very significant gap between the numbers that appear in that survey and the numbers that we get. Our numbers are based on the definition of a foreigner under the Foreign Acquisitions and Takeovers Act. I think last week we released the 2022-23 numbers, which would put the estimate at around one per cent.

Senator ROBERTS: Moving onto the first home super saver scheme, I’m quoting from the eligibility requirements in guidance note 2018/1: There is no requirement for you to be an Australian citizen, Australian resident or an Australian resident for taxation purposes. Why are we allowing foreigners—not even residents for taxation purposes—access to this scheme, which is meant to be for getting Australians into their first home?

Mr Heferen: That would be a policy question for our colleagues at the Treasury.

Ms Brown: It is a policy question for Treasury, but the appropriate group for it to be directed to is markets group. That is administered by our Retirement, Advice and Investment Division in markets group. We can take it on notice and have them provide a reply.

Senator ROBERTS: I want to come back to foreign ownership again. I refer to table 3 of the answer to question on notice SBE106 from the November estimates. Through the Department of Home Affairs visa data-
matching program, how many of the real property transfer report entities records that are automatically matched to ATO records are foreign?

Mr Thompson: As we’ve answered previously, we’re not able to—the question was, ‘How many do we automatically match?’ and ‘How many do we have to go away and do additional things to match?’

Senator ROBERTS: I’m coming to that.

Mr Thompson: If you think about it coming through the system: if it’s an exact match, that’s all automated. There would be a range of circumstances where we don’t get an automatic match. It could be that the date of
birth’s the wrong way. It could be a maiden name. In those circumstances, we have additional processes to match. We work down through every record. In the automatic matches, there will be some foreigners. In the ones we can’t automatically match, there will be some foreigners.

Senator ROBERTS: What percentage?

Mr Thompson: At that point—

Senator ROBERTS: You can’t tell us?

Mr Thompson: The numbers in that answer to the question on notice were addressing how many we automatically match versus how many we perform additional—

Senator ROBERTS: Correct. How many that were matched were foreigners?

Mr Thompson: If the question is about the compliance results that we get, they’re published—

Senator ROBERTS: My question is: what percentage of buyers are foreigners?

Mr Thompson: One per cent.

Senator ROBERTS: Could you provide to me on notice the numbers of foreign buyers for the last five years.

Mr Thompson: We publish that. I’ve got the latest public—

Senator ROBERTS: Okay, if you could take it on notice for the last five years.

Mr Thompson: I’ll take it on notice.

Senator ROBERTS: From table 4, immediately below that from the same question on notice from November estimates, how many of the entity records that were not able to be automatically matched to ATO records remain unverified or unresolved?

Mr Thompson: None.

Senator ROBERTS: How many unmatched records from the data-matching program remain unresolved from 2018 to date?

Mr Thompson: I think that’s the same question.

Senator ROBERTS: I want to go right back to 2018.

Mr Thompson: I’ll take that one on notice.

Senator ROBERTS: How many residential properties in Australia are owned by foreigners today?

Mr Thompson: I think that is the question around the register.

Senator ROBERTS: I just want to know how many foreigners own real estate. We’ve got a housing crisis. We’ve got people in Brisbane and all up and down the east coast of Queensland in major provincial cities sleeping under bridges and in cars, taking families home.

Senator Gallagher: Yes, but I think it’s very simplistic to say that that housing shortage is a result of foreign investment in residential housing. We’ve had a number of hearings where you’ve been told how relatively low that level is in comparison to non-foreign owned.

Senator ROBERTS: I’d like the exact numbers.

Senator Gallagher: And we’ll provide that number to you, but the link that you are saying—that foreign ownership of properties equals some of what you’ve been talking about and is a real issue in Brisbane—is not
right. The issue is supply. We’ve got to build more houses for people, not blame foreigners for it.

Senator ROBERTS: I’ve never said it’s entirely due to foreigners, but that is one—

Senator Gallagher: We need to make sure that the rules are tight, that there are restrictions in place, which there are, so that that arrangement works properly. But it’s not fair to say that the housing crisis is because we’ve got some small foreign-owned investments.

Senator ROBERTS: I didn’t say that. I said that’s one contributing factor.

CHAIR: I’ll just do some committee administration here. I’ll table three documents—the three articles referenced by Senator O’Neill earlier. The committee has agreed to a time management plan to conclude
questions, so last question, Senator Roberts.

Senator ROBERTS: I’d like to make the point that the witnesses have provided answers so late, in the past, that they’ve been distributed at 8 pm on the day before they appear in Senate estimates, 100 days after the last
hearing, and failing to raise any public interest immunity claims on answers they don’t give. That’s a clear frustration of the committee’s work.

Senator Gallagher: We will try and do better, Senator Roberts. We have had a long discussion about the number of questions on notice which are coming in and having to be managed by departments, but I agree: it’s an important accountability measure, and departments should work to meet the timeframes.

Senator ROBERTS: When it’s 100 days, it’s way late, and then it suddenly comes in at 8 pm on the night before.

Senator Gallagher: Yes. I understand your frustration.