Foreign Acquisitions and Takeovers Act 1975

PART 5 - OFFENCES AND CIVIL PENALTIES  

Division 3 - Civil penalties  

Subdivision C - Civil penalties relating to residential land  

SECTION 95   ACQUISITION OF INTERESTS IN ESTABLISHED DWELLINGS  

Temporary residents

95(1)    
A foreign person who is a temporary resident must not hold an interest in more than one established dwelling at the same time.

Temporary residents - exceptions

95(2)    
Subsection (1) does not apply if:

(a)    the person is making a genuine attempt to dispose of one or more of the interests; and

(b)    if those interests were disposed of, the person would not contravene subsection (1) ; and

(c)    the person has been holding an interest in more than one established dwelling for less than 6 months.

95(3)    
Subsection (1) does not apply in relation to an interest in an established dwelling if, at the time the interest was acquired by the person:

(a)    the dwelling was a new dwelling; or

(b)    the person was not prohibited from holding the interest in that dwelling at the same time as holding an interest in another established dwelling.

Note: There is another exception in subsection (5) .

Other foreign persons

95(4)    
A foreign person who is not a temporary resident must not acquire an interest in an established dwelling.

General exceptions

95(5)    

Subsections (1) , (4) and (8) do not apply in relation to an interest if the interest was, or was of a kind, specified in:

(a)    an exemption certificate; or

(b)    a no objection notification; or

(c)    a notice imposing conditions.

Civil penalties

95(6)    
A person who contravenes subsection (1) or (4) is liable to a civil penalty.

95(7)    
The maximum penalty for a contravention of subsection (1) or (4) is the greatest of the following:

(a)    

double the amount of the capital gain that was made or would be made on the disposal of the interest mentioned in subsection (8) ;

(b)    

50% of the consideration for the acquisition of that interest;

(c)    

50% of the market value of that interest.

Note: For how to work out the capital gain, see section 98 .

95(8)    
The interest is:

(a)    if at the time of determining the maximum penalty the foreign person still holds an interest in more than one established dwelling - the interest relating to the established dwelling or dwellings that were most recently acquired by the person; and

(b)    otherwise - the interest relating to the established dwelling or dwellings that were most recently disposed of by the person.