New laws regulating property purchases by foreign investors will ensure everybody plays by the rules, Treasurer Joe Hockey has told parliament.
Introducing legislation on Thursday, Mr Hockey said foreign investment rules had not been significantly revised since their introduction 40 years ago.
Nor had they kept pace with changes in global investment.
Under the draft laws, penalties would be increased from $90,000 to $135,000 for serious breaches of residential real estate rules.
Real estate agents, migration agents, conveyancers and lawyers who knowingly assist a foreign investor in breaching the rules will now be subject to both civil and criminal penalties.
"The package delivers a robust and enforceable regulatory framework and provides a predictable and welcoming environment for investors," Mr Hockey said.
The treasurer also introduced a fee for foreign investment applications so that Australian taxpayers would no longer be required to pay for administering and enforcing the foreign investment regime.
A third part of the package is a foreign ownership register of agricultural land intended to deliver better scrutiny and transparency.
"These measures will ensure that continued foreign investment in Australia will benefit all Australians and our future generations," Mr Hockey said.
KEY ELEMENTS OF FOREIGN INVESTMENT REFORM PACKAGE
* Criminal penalties for individuals are increased from $90,000 to a maximum $135,000 or three years imprisonment.
* Companies face penalties of up to $675,000.
* Real estate agents, migration agents, conveyancers and lawyers who knowingly assist a foreign investor in breaching the rules will face penalties.
* Foreign investors will pay a fee of $5000 for applications to buy residential and agricultural properties valued at $1 million or less in order to fund the cost of administering and enforcing the foreign investment regime. Higher fees apply for more expensive properties.
* A register of foreign-owned agricultural land will deliver better scrutiny and transparency.
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