Labor announces two-year ban on foreign home buyers in Australia

The Albanese government has announced a two-year ban on foreign investors purchasing existing Australian homes, set to begin on April 1, 2025. This policy mirrors a previous initiative by the Coalition and aims to alleviate housing pressures for young Australians, although it is projected to impact less than 0.4% of the housing market. Housing Minister Clare O'Neil emphasized that while this is not a 'silver bullet' for the housing crisis, it is a significant step in their broader housing agenda. The ban will apply to all foreign nationals, including temporary residents, but will allow for new dwelling purchases to encourage housing supply. Critics argue that the policy's impact on overall housing affordability will be minimal, as foreign purchasers represent a small portion of the market. The government plans to review the policy during the ban period to assess its effectiveness and compliance.