Potential homebuyers will face competition from overseas, and Labor is expected to ban foreign investors from buying existing homes for at least two years.

However, the restriction replicates a policy announced by the coalition last year - which will occupy less than 0.4% of the housing market, raising questions about its effectiveness.

Under the government's plan, foreign investors, including temporary residents such as international students and foreign companies, will not be able to purchase established residences in Australia from 1 April 2025 to 31 March 2027.

They will still be able to buy new homes to encourage the supply of housing and will also provide vans for workers in the Pacific Visa Program.

The government will also crack down on land banking by forcing foreign investors to purchase vacant land within a reasonable time frame.

Housing Minister Clare O'Neil said the government must target all efforts to secure home ownership for more young Australians.

"It's not a silver bullet, because there is no silver bullet," she said. "But it's the absolutely huge housing agenda for Labor."

Currently, foreign investors are banned from buying existing homes, but in some cases are allowed to move to Australia to work or study.

In 2022/23, foreign investors accounted for 5,360 residential real estate purchases, with only one-third of them existing homes.

The Property Committee said that foreign purchases of existing homes are very low and will not solve the difficulty of housing in itself.

Council policy and advocacy executive Matthew Kandelaars said the carving of the new building was welcomed because every effort should be made to promote housing supply.

“It is gratifying that both sides recognize that building new homes is the most important way for our country to address the challenges of housing affordability,” he said.

“Australia has been relying on global investment – ​​using money from other peoples to help build and shape our cities, and we shouldn’t stop now for the past three centuries.”

Opposition leader Peter Dutton announced a two-year ban on foreign purchases of existing homes in his budget reply speech in May 2024.

At the time, Treasurer Jim Chalmers said the speech “had not been facilitated”, while government minister Bill Shorten claimed that foreign investors had purchased less than 5,000 in the past two years. Australian house.

But O'Neal said Sunday that the government has long been studying the move, calling it "good public policy."

"I really don't care about politics. Everything we do with housing is bringing more Australians into our homes, and this change will play a role in it," she said.

Interestingly, Dutton said, the Treasurer did not stand up with O'Neal to announce the news because he "traveled the policy" when he announced it.

“We have to provide housing for Australians, but you can only do that under the leadership of the coalition government,” he told Darwin’s reporter.

The government will inject 1.4mA years into the Australian Tax Office to enforce the ban and promote screening of foreign investment proposals.

The ATO and the Treasury will also receive $220 million in annual revenue until 2029/30, from that time onwards to increase audit and compliance with land banking operations for foreign investors.