The Morrison government is playing catch up on some measures promising Australians greater access to affordable housing by tightening the screws on foreign investors.
Assistant Treasurer Michael Sukkar has introduced legislation to the lower house on Wednesday that implements measures announced in the 2017/18 budget.
Accordingly, once the bill clears parliament the measure will apply from 7.30pm, May 9, 2017.
Under the draft laws, foreigners would have to pay more in capital gains tax on properties worth $750,000 or more.
It also increases the rate to 12.5 per cent.
The legislation also makes changes to who can access the capital gains tax exemption on their main residence.
Foreigners who have resided in Australia for six years or less would be able to get the exemption if "certain life events" occur during that time period.
This includes terminal illness, the death of a partner or child, or divorce.
The bundle of draft laws also includes changes to tax incentives which Mr Sukkar says will boost investment in affordable housing.
It changes the capital gains tax discount to up to 60 per cent from January last year, up from the current 50 per cent.
To qualify, owners must have had the property for at least three years and it must be managed through a registered community housing provider.
These changes would apply retrospectively from January 2018.
Australian Associated Press
