“Higher fees for the purchase of established homes, increased penalties for those that leave properties vacant, and strengthened compliance activity will help ensure foreign investment in residential property is in our national interest,” Chalmers said in a statement with housing minister Julie Collins.

The centre-left Labor government would also cut application fees for foreign investment in “build to rent” projects to encourage construction of more homes, Chalmers said.

The fee hike comes after Chalmers last year doubled the fees for foreign investors buying assets in the country, which the government said would generate A$455 million in extra revenue over four years.

“These adjustments are all about making sure foreign investment aligns with the Government’s agenda to lift the nation’s supply of affordable housing,” Chalmers said, adding the government would introduce laws in 2024 to implement the higher fees.

Prices in Australia’s housing market, already among the most expensive in the world, are forecast to maintain steady growth as rising demand outstrips supply in the nation of 26 million people.

The government in June pledged A$2 billion to deliver thousands of new affordable homes nationwide, with the aim of boosting public housing supply for Australians on waiting lists.