The federal government has announced a two-year ban on foreign buyers purchasing existing Australian homes, starting from April 1. The move, which mirrors a policy previously proposed by the Coalition, is aimed at addressing housing affordability concerns.

Key details:

• The ban applies to foreign investors, foreign-owned companies, and temporary residents.
• Exemptions will be made for the purchase of new homes and investments that increase housing supply.
• Foreign buyers currently own about 2% of Australia's housing stock, with less than 1% of purchases made in the last financial year.
• The government will enforce the ban with additional funding to the Australian Tax Office for audits and compliance checks.

Though economists argue the ban will have a minimal impact on overall housing affordability, the government maintains that it is part of a broader strategy to boost housing supply.

The Master Builders Association has continuingly highlighted the importance of increasing housing supply to address the ongoing demand from the construction industry.