On 1 December, the new penalty regime for illegal foreign property purchases is expected to come into effect. The new laws will for the first time capture third party facilitators like real estate agents, accountants, and lawyers, who will face fines of $45,000 for individuals and $225,000 for a company if they knowingly assist foreign buyers to break the law.

The bill introduces a range of new and stricter penalties that will enable breaches to be dealt with according to the severity of the breach, Assistant Treasurer, Kelly O’Dywer told parliament.

The existing criminal penalties will be increased from $90,000 to $135,000 for individuals and from $450,000 to $675,000 for companies. These will be supplemented by civil pecuniary penalties and infringement notices for less serious breaches of the residential real estate rules.

“For the very first time, third parties such as real estate agents, migration agents, conveyancers and lawyers who knowingly assist a foreign investor to breach the rules will also now be subject to both civil and criminal penalties,” said Ms O’Dwyer.

Among the changes set to be introduced from 1 December 2015 is the imposition of fees for residential properties. $5000 for those valued at $1 million or less and $10,000 for property over $1 million, increasing in $10,000 increments for every million dollars thereafter.

The legislation is also expected to close loopholes that have seen people who have illegally purchased property, and required to divest, able to keep the capital gain.

Analysts say that the new rules will cause investors to rethink their property investments and may see a fall in interest in residential real estate but an increased interest in commercial property, which faces less scrutiny and fees.

Speaking to The Australian, Malcolm Brennan, a partner at law firm King & Wood Mallesons said that the biggest disparity in the new structure is how it treats agricultural land: “The fee for applying to buy a $10m farm will be $100,000, but for buying a factory no fee until $1bn.”

Mr Brennan said, overall the rules are unnecessarily complex and compliance may be difficult: “they have made complexity an art form, with many provisions expressed in multiple double negatives. I have discussed it with a room full of clever lawyers, and they have been scratching their heads.”