94Acquisition of interests in residential land

94 Acquisition of interests in residential land

(1) A foreign person who proposes to take a notifiable action or notifiable national security action that is a residential land acquisition must not take the action if the foreign person has not given a notice relating to the action under section 81.

Note: If a person takes an action by entering an agreement, the action is not taken until the agreement is binding on the person (see subsections 15(4) and (5)).

(2) If: (a) a foreign person gives a notice to the Treasurer stating that any of the following actions are proposed to be taken: (i) a significant action (including a significant action that is a notifiable action) that is a residential land acquisition; (ii) a notifiable national security action that is a residential land acquisition; (iii) a reviewable national security action that is a residential land acquisition; or (b) both: (i) a foreign person proposes to take an action that is a residential land acquisition; and (ii) the Treasurer has given a notice under subsection 66A(4) in relation to the action; the foreign person must not take the action before the day mentioned in section 82. (3) A person who contravenes subsection (1) or (2) is liable to a civil penalty. Penalty (4) The maximum penalty for the contravention is the greatest of the following: (a) double the amount of the capital gain that was made or would be made on the disposal of the interest in the relevant residential land; (b) 50% of the consideration for the residential land acquisition; (c) 50% of the market value of the interest in the relevant residential land.

Note 1: Consideration is defined by the regulations (see section 4).

Note 2: For how to work out the capital gain, see section 98.