would this help to stabilise property prices

In an attempt to stabilise property prices I suggest using a system similar to monetary policy. Whereby instead of a changing interest rate to control inflationary and deflationary pressures, this idea utilises a new tax on foreign ownership of Australian land to basically do the same thing for property. The tax could be brought in and raised and lowered to increase or decrease inflationary and deflationary effects on house prices though the control of foreign demand.

Many countries prohibit the sale of land to foreign businesses and individuals, these parties may instead rent. Previous Australian governments did not have the foresight to restrict foreign ownership of land even though they intervene in the purchase of larger assets like companies. The new tax would enable the government to regulate this thriving short sighted industry, selling off Australian assets by the acre to cashed up foreigners.

The revenue raised would be a windfall for the government, it would provide a stream of additional "rent". The money could be used for many projects including public housing, infrastructure, health, education, well pretty much anything.

It is only an idea I have been swinging around in my head, any comments are welcome.