Redevelopment of second hand dwellings:
A proposed redevelopment must increase the number of dwellings and no rental income can be obtained from the existing dwelling prior to demolition. Such redevelopments are required to demolish the existing dwelling and commence construction of the new dwellings within 24 months in line with vacant land (previously 12 months).
FROM 31 MARCH 2009 THE REGULATIONS CHANGED AS FOLLOWS:
Temporary residents’ exemption:
Temporary residents are no longer required to notify proposed acquisitions of:
-an established dwelling to be used as their principal place of residence (not for investment purposes);
-any new dwellings; and
-single blocks of vacant residential land (other acquisitions of vacant land will require notification and will normally be approved subject to development within 24 months).
The exemption applies to contracts entered on or after 18 December 2008 (the date that the Assistant Treasurer announced the policy changes) - that is, notification is not required even if a temporary resident signed/exchanged contracts to purchase such property before the Regulations were amended on 31 March.
The exemption includes acquisitions of property by temporary residents via their trust or Australian incorporated company.
The existing notification requirements continue to apply to non-residents, who must notify all proposed acquisitions of residential real estate.
Accommodation facilities such as hotels, motels, hostels and guesthouses are treated as commercial real estate rather than residential real estate. Acquisitions of such facilities – or individual units within them – valued below the relevant developed commercial property threshold are exempt from the FATA and do not require notification and approval. See Accommodation Facilities for further details.
Streamlined administrative procedures have been established for non-resident foreign persons, foreign-owned companies and trust estates to notify and receive approval for proposed acquisitions of residential real estate which meet the eligibility criteria. New application forms and statutory notices have been introduced to facilitate the streamlined procedures. See How to apply for further details.
The Foreign Investment Online Application System (FIOLA) is no longer available. Applicants must download and print the new application forms, then email or fax the completed and signed forms to FIRB - please note that applications submitted on the old forms from 31 March 2009 will not be valid. In the coming months, we expect to further streamline the process to allow for electronic lodgement of applications.
As the administrative procedures are streamlined, the current system for developers seeking advance approval to sell new dwellings to foreign persons will be discontinued. Until further notice, the pre-approval arrangements that have been operating for some time will continue to operate on a case-by-case basis. Please contact FIRB for specific advice.
Source: FIRB www.firb.gov.au