Australians are being promised greater access to affordable housing as the federal government tightens the screws on foreign investors.
Under draft laws introduced to parliament on Thursday, foreigners will have to pay more in capital gains tax on properties worth $750,000 or more.
The measure, announced in the May budget, increases the rate from 10 per cent to 12.5 per cent, while lowering the threshold from $2 million.
By clamping down on tax avoidance by foreign investors the government was ensuring home ownership was more achievable for ordinary Australians and they have access to affordable and secure housing, assistant minister to the treasurer Michael Sukkar told MPs.
The changes will take effect on July 1 and are expected to generate $570 million in revenue over the next four years.
Another budget announcement, to ensure only Australian residents can access the capital gains tax exemption on their main residence, is set to be introduced in a later bill.