Crackdown on foreign housing investors

STOPPING THE RORTS:

AS THINGS STAND

* Foreigners cannot buy existing residences, only new property, subject to Foreign Investment Review Board approval.

WHY THE CONCERN?

* It's believed the rules have been widely flouted, driving up prices for local buyers.

WHAT HAPPENS NEXT?

* FIRB's residential real estate function will be transferred to the Tax Office, which is better equipped to detect suspect deals.

* Foreigners who have bought property have until November 30 to self-report or face tough penalties.

* The penalties include fines of up to $127,500 and three years' jail for individuals and $637,000 fines for companies. Those who purchased illegally will have to divest.

* Penalties also apply to real estate agents and property developers.

* There will be new application fees of $5000 for a property under $1 million, rising with increasing value.

* There will be thresholds of $15 million for rural land (down from $252 million) and $55 million for agribusiness (down from $252 million).