SYDNEY, July 22 (Reuters) – Australia will double fees for foreign investors looking to buy assets in the country, Treasurer Jim Chalmers said on Friday, as it grapples with a prolonged budget deficit and seeks to boost government revenue.
The increase in fees and penalties for property, farm and business acquisitions in Australia is expected to generate an additional A$455 million ($315 million) in revenue over the next four years, Chalmers said.
Mr Chalmers said he continued to support foreign investment in Australia but had to make the decision because of “the state of the budget we have inherited from our predecessors”.
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“Foreign investment rates will continue to represent only a small proportion of total foreign direct investment,” it said in a statement. The new measures will come into force from July 29.
Chalmers warned earlier this week that the country’s economic picture would be “challenging” as the government prepares to release updated economic forecasts to parliament on July 28 to take into account faster inflation and rising rates of interest
The recently elected Labor Government, after having promised during the electoral campaign not to raise taxes, has also warned that spending will have to be cut to curb the public debt.
($1 = AUD 1.4451)
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Reporting by Renju Jose; edited by Richard Pullin
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