Industry says proposed changes could increase overseas investment in property
Treasurer Jim Chalmers has outlined plans to simplify the process for reputable overseas investors to enter the Australian market, while also increasing scrutiny of applications considered higher risk.
These changes are intended to encourage more international capital into Australia, particularly from countries with established ties.
Chalmers presented the proposal for an automatic approval pathway for low-risk investments during a speech in Sydney on Friday. The government has already adjusted Foreign Investment Review Board (FIRB) procedures, including faster assessments for investors with a strong history, such as Canadian pension funds.
“Our vision is for Australia to be the destination where global investment flows first and grows fastest,” Chalmers said. “When you reconsider and redeploy the capital you manage, our objective is for Australia to be the most obvious and most compelling place to put it to work.”
Speaking with investors from around the world in Sydney this morning, about Australia’s opportunities in a new world of economic uncertainty and how we make our foreign investment regime stronger and faster.
— Jim Chalmers MP (@JEChalmers) October 31, 2025
Read the full speech at: https://t.co/VCYmhRTDMT #auspol #ausecon pic.twitter.com/ESCS3fe4pT
The Property Council has expressed support for the proposal, which could also facilitate increased investment in Australia’s property sector.
“Time kills deals, and right now, we need as many investment partners as we can find for Australian companies to build the assets our growing cities need,” said Mike Zorbas (pictured right), chief executive of the Property Council. “Global institutional investors accounted for 29% of all investment into Australian property in the last 10 years and routinely support local businesses building the best new buildings and precincts across Australian cities.”
Zorbas pointed out that streamlining approvals for established, low-risk investors would remove regulatory burdens that hold back global capital, which routinely has a better risk appetite for supporting domestic projects.
“In a time of systemic state debt, we need other people’s money more than ever to build our offices, logistic hubs, shopping malls and much-needed new homes,” he said.
“The Property Council has consistently called for streamlining requirements for FIRB approval processes and application costs to encourage more investment into Australian cities.”
The government released a discussion paper on Friday, seeking feedback on measures to attract further international investment, including the potential for automatic approvals for investors such as pension funds that are considered non-controversial.
Despite these federal efforts, concerns remain about state-level policies. “Victoria’s punitive surcharges on international investors have resulted in a 53% drop in institutional property investment in three years,” Zorbas said.
A recent report by Mandala Partners, commissioned by the Property Council, found that institutional investment in commercial and large-scale residential developments has declined, with Victoria now receiving about 40% less global investment per capita compared to New South Wales.
The report highlights the effect of land tax surcharges on large-scale investors, such as American pension funds involved in major housing projects, rather than individual overseas buyers of family homes.
According to the findings, removing land tax surcharges for global investors nationwide could unlock $8.1 billion in investment, generate 8,400 jobs, and increase Australia’s GDP by $3.6 billion by 2030.
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