Addressing housing affordability is a stated priority for the current Australian Government. However, enabling home and property ownership for Australian residents has resulted in, among other things, increased taxes and costs for foreign resident property owners.

Consequently, Australia has implemented several tax changes that affect foreign residents particularly those investing in or owning residential property in Australia. The Federal Budget handed down on 8 May 2018 adds to the mix a proposed change of law to deny tax deductions for holders of vacant land.

These changes affect foreign resident individuals and entities, such as companies and trusts, that are substantially controlled by foreign residents.