When to report a breach
You can confidentially report a breach of the foreign investment rules. This includes whether you suspect or know of a breach.
If you have breached your foreign investment obligations, contact us as soon as you can. We will prioritise your issue and help you to comply with the rules.
Who can report a breach
We welcome information from anyone in the community with concerns about suspected illegal activities by a foreign person owning Australian residential property. Your information will help us safeguard Australia's national interest, businesses and economy.
If you are a foreign person, you should also tell us if you think you have broken the foreign investment rules. If you let us know as soon as possible, the penalty may be lower than if we detect your breach.
What types of breaches you can report
These are some examples of breaches you can report to us:
- Purchasing and financing properties
- Purchasing established dwellings
- Purchasing vacant land
- Occupying a dwelling
- Third parties
- Officer of a corporation
- Failing to register
Purchasing and financing properties
A foreign person may have broken the rules by:
- purchasing a property without foreign investment approval
- purchasing an established dwelling as a foreign non-resident. See foreigninvestment.gov.auExternal Link for more information
- failing to register their property on the Register
- providing money to purchase an Australian property but hide the true owner by not registering the property title in the name of the foreign person.
Failing to register
A foreign person may have broken the rules if they do not:
- register their investment on the Register within the prescribed timeframe
- update the details of the asset if their situation changes.
Purchasing established dwellings
A foreign person may have broken the rules if:
- they purchase an established dwelling but do not live in it while they are in Australia
- they rent out or demolish the established dwelling acquired as their principal place of residence
- they purchase an established dwelling but do not sell the property within 6 months of their temporary residency visa expiring
- purchase an established dwelling for redevelopment but rent it out instead of redeveloping it to increase the number of dwellings
- purchase more than one established dwelling as a temporary resident
- purchase an established dwelling but don't redevelop it within 4 years
- demolish an established dwelling but do not replace it with 2 or more dwellings
- do not sell an established dwelling previously used for staff accommodation and leave it vacant for 6 months or more.
Purchasing vacant land
A foreign person may have broken the rules if they purchase vacant land but don't develop it by constructing one or more dwellings on the property within 4 years.
Occupying a dwelling
A foreign person may be in breach of the rules if they provide incorrect information to us about whether a dwelling was vacant or occupied.
Third parties
A third party, such as a stockbroker, lawyer, solicitor, conveyancer, real estate agent or other adviser, may have broken the rules relating to residential land, if they knowingly assist another person to breach the law by:
- aiding, abetting, counselling, or procuring a contravention
- inducing (by threat, promise or otherwise) a contravention
- conspiring with others to affect a contravention
- being, directly or indirectly, knowingly concerned in, or party to, a contravention.
For examples of third-party breaches, see guidance on residential compliance on the Foreign InvestmentExternal Link website.
Officer of a corporation
An officer of a corporation may be subject to penalties if they authorise or permit a breach of the foreign investment rules, or fails to prevent such a breach from occurring.
How to report a breach of the foreign investment rules
If you know or suspect someone is breaking the foreign investment rules or want to tell us about your breach, you can report by either:
- completing the tip-off form
- phone on 1800 060 062, or
- If you prefer to speak to us in a language other than English, phone the Translating and Interpreting Service on 13 14 50 for help with your call.
- If you are a tax professional, you can provide information by phone on 13 72 86 (Fast Key Code 3 4).
- writing to us – mark your letter 'in confidence' and post it to
AUSTRALIAN TAXATION OFFICE
TAX INTEGRITY CENTRE
LOCKED BAG 188
ALBURY NSW 2640.
When we receive information through a tip-off, we will cross check the information provided and decide if further action is needed. It's important to include as much detail as possible so we can investigate fully.
How to complete the tip-off form
Complete the ATO tip-off form on our website or in the ATO app and select Start.
If you are voluntarily reporting a breach you have made as a foreign person, include as much detail as possible.
At Who is this about select who you are reporting for:
- Individual, include their
- property address
- name (or the name of their company)
- phone number
- social media details (for example, username and profile address)
- nationality.
- Business, include the
- business name
- Australian business number (ABN) (if known)
- business address
- phone number
- website details
- social media details (for example, webpage and profile addresses).
- What is this about – select Other, then Illegal purchase of Australian property by a non-resident.
- Provide as much detail as possible about the reported behaviour, including
- activities and behaviour that may be in breach of the foreign investment rules
- the name of the property being reported and, if known
- the purchase date and price
- the selling agent
- the status of the property (if it is vacant, rented or owner occupied)
- any other information you have about this property.
- Include your contact details as we may need to contact you for more information. Your details remain confidential in accordance with privacy laws.
Before submitting the form, check you have provided the relevant information and supporting documentation. Provide as much detail as you can so we can fully assess the information.
Remember to make a note of the reference number when you submit the form. You will need to quote it if you want to add information later.
Examples of past tip-offs of foreign investment breaches
Examples of cases we had received as a tip-off:
- Illegal purchase of established dwelling
- Renting out an established dwelling
- Not redeveloping and renting
- Incorrect statement in vacancy fee return
Illegal purchase of established dwelling
We received a community tip-off about a foreign non-resident who didn't apply for foreign investment approval before buying an established residential property. As this was a breach of the rules, the foreign person had to pay a $12,600 infringement penalty.
The foreign person was unable to move into the property or redevelop it to create 2 new dwellings. This was considered contrary to national interest and the foreign person had to sell the property.
Breach of conditions – renting an established dwelling
A tip-off was made about a foreign person who had rented out their established residential property through a real estate agent. This was in breach of the conditions listed on their foreign investment approval.
The foreign person had to pay a $12,600 infringement penalty and move into the property as a condition of their foreign investment approval.
Breach of conditions – not redeveloping and renting
A member of the building and construction industry made a tip-off that 3 properties were held by an individual foreign person and associated trusts in breach of their foreign investment approval conditions. They breached the conditions of their approval by renting out one established property and not redeveloping the others within the approved timeframe. Infringement penalties were imposed and the properties had to be sold.
Incorrect statement in vacancy fee return
A foreign person stated in their vacancy fee return that they had occupied their dwelling for 6 months or more in accordance with the vacancy fee rules. However, our investigation showed the person was overseas for more than 6 months of the year.
We helped the person understand that having a friend occupy the residence did not meet the definition of 'residential occupation' as defined by the foreign investment rules. They had to pay a $89,300 vacancy fee liability.
How your privacy is protected
Your privacy is protected by the Privacy Act 1988 and the strict secrecy provisions of the Income Tax Assessment Act 1936, the Taxation Administration Act 1953 and other tax laws.
Due to privacy laws, we are unable to share details specific to any foreign investment compliance investigation. We won't be able to tell you of the outcome of our investigations. We equally respect your privacy in reporting the suspected breach, as well as the privacy of the owner of the reported property.
For more information, see ATO privacy policy.