Foreign investor ‘forced sale’ warning: $370k landbanking bust

The ATO has warned foreign investors buying land must abide by conditions to build within four years. Picture: Brendan Radke A foreign property investor who landbanked a vacant residential plot has been slapped with a massive $370,000 penalty as the Australian Taxation Office ramps up compliance. Investor Guno Handojo was found to have breached the development conditions attached to their foreign investment approval, after failing to build a residential home on vacant land. This after a compliance crackdown by the ATO saw the Federal Court of Australia hand Handojo a $370,000 court penalty. ATO assistant commissioner Jennifer Moltisanti warned that the tax office will use all available powers to stamp out illegal ‘land banking’. Picture: Brendan Radke Under Australia’s foreign investment framework, foreign buyers approved to buy vacant residential land are legally required to build a home on the lot within four years so that the land contributes directly to housing supply. Handojo failed to build a home within the mandated four-year timeframe. During the court proceedings, the Federal Court granted freezing orders over the vacant land to prevent the investor from selling it before ...