Foreign investment must be considered under extremely strict laws of citizen ownership of land and permanent structures. A foreign individual or entity can only rent land or buildings for a maximum term of twenty years. It can never be allowed to own sovereign assets outright. This would force foreign companies to engage with purely local companies to interact with and these local companies would operate under Australian taxation and corporate governance laws to guarantee good corporate citizenship.
As a part of these provisions, all land and buildings currently owned by foreign entities of any kind must have a sunset clause applied to that ownership.
- For a single residential property of any kind, this should be the greater of ten years from the purchase date or three years from introduction of sunset legislation.
- For multiple strata properties within a single location, such as a block of apartments, this should be the greater of ten years from purchase date or five years from introduction of sunset legislation.
- For commercial buildings, this should be twenty years from purchase date.
The sunset clauses are set to ensure some return on investment is made, without prolonging the issue. At that point these properties must be returned to Australian ownership by sale.
- The purchasing entity must be an entirely Australian company or individual citizen.
- Permanent residents can be permitted to own land as long as they are physically resident in Australia for more than two hundred days a year.
This will intentionally burst the real estate bubble in Australia such that more and more locals will be able to afford to buy a home. Depending on the scale of the downwards price readjustment, further compensation for people who began purchasing their first home within ten years of the introduction of the legislation should be implemented. Investment properties should receive no compensation for this change, that is a market risk to be borne by the purchaser.