Skip to content
Government Federal, Taxation

‘Land banking’ foreign investor busted by ATO

Australian Taxation Office 2 mins read

The Australian Taxation Office (ATO) is cracking down on foreign investors who break Australia’s strict foreign investment rules by ‘land banking’ vacant land.

On Tuesday, the Federal Court of Australia found that Guno Handojo breached the development conditions attached to their foreign investment approval after failing to construct a residential dwelling on vacant land within the required timeframe of 4 years, and ordered a penalty of $370,000.

ATO Assistant Commissioner Jennifer Moltisanti welcomed the outcome and said that this action demonstrates the ATO’s commitment to ensure compliance by foreign investors.

‘Foreign investors and their representatives need to understand that buying residential land in Australia comes with clear and enforceable obligations,’ Ms Moltisanti said.

‘Where foreign investors do not comply, we will take firm action, including court proceedings, to uphold the law and protect Australia’s national interests.’

Foreign investors who purchase vacant residential land are generally required to build within 4 years under Australia’s foreign investment rules, ensuring land is put to productive use and contributes to housing supply.

The ATO identified the breach through its compliance program targeting land banking, including data matching and audits of foreign investment approvals. The ATO uses extensive data and intelligence to identify foreign investors who fail to comply with the Foreign Acquisitions and Takeovers Act 1975 and the foreign investment framework.

During the proceedings, the Federal Court granted freezing orders over the land to prevent its disposal prior to the court’s outcome.

‘This case should serve as a warning to foreign investors and their advisers,’ Ms Moltisanti said.

‘The ATO can and will use its powers to bring foreign-held land that has been illegally banked by foreign investors back into the housing market, which may include forced sale of the land.

‘Foreign property owners who think they can simply ignore their Australian legal responsibilities are sorely mistaken, and this court outcome demonstrates that.’

The ATO promotes voluntary compliance with the foreign investment rules. However, where foreign investors seek to avoid or obstruct compliance, including by failing to develop approved land or obscuring beneficial ownership, stronger enforcement action will follow.

Notes to journalists


Contact details:

ATO Media Unit | 02 621 61901 | [email protected]

More from this category

  • Finance Investment, Taxation
  • 17/09/2026
  • 12:50
Tax Practitioners Board

TPB provides guidance on reforms to sanctions powers

TheTreasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and Other Measures) Bill 2026 has received Royal Assent, providing for an enhanced sanctions framework for the Tax Practitioners Board (TPB). The TPB haspublished information about the new sanctions powers that will enable the TPB to respond more effectively to serious misconduct and non-compliance by registered tax practitioners and unregistered entities. The reforms provide the TPB with additional powers to ensure compliance action under the Tax Agent Services Act 2009 (TASA) is proportionate to the seriousness of the conduct, while continuing to support tax practitioners who meet their professional and ethical…

  • Government Federal, Taxation
  • 17/09/2026
  • 08:00
Australian Taxation Office

Out of the shadows – shadow economy prosecutions jump 80%

The ATO has significantly increased its use of prosecutions to combat non-lodgment shadow economy activity. The Australian Taxation Office (ATO) has today announced an 80% jump in non-lodgment prosecutions over the past 2 years from dodgy shadow economy operators, leading to more than $2.7 million in fines. ATO Assistant Commissioner Tony Goding said operating in the shadows to avoid tax and super obligations might seem like a victimless crime, but it comes at a cost to the community. The shadow economy refers to people or businesses doing the wrong thing, whether that’s not paying the tax or super they’re supposed…

  • Government Federal, Immigration
  • 17/09/2026
  • 06:59
National Migration Summit alliance

National Migration Summit alliance available for comment ahead of Tony Burke’s National Press Club address on migration

Ahead of Home Affairs Minister Tony Burke's National Press Club address on migration today, representatives from a broad alliance of business, social service, multicultural, regional and migration organisations are available for media comment. The alliance is calling on the Australian Government to urgently convene a National Migration Summit, bringing together governments, business, unions, community organisations, migration experts and researchers to develop a long-term, evidence-based roadmap for Australia's migration system. The group argues Australia needs a more mature conversation about migration, one grounded in evidence, informed by diverse perspectives and focused on the national interest. The proposed summit would provide an…

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.