The senate has cleared legislation that allows foreign owners to be slugged with an annual fee if they leave their properties vacant for at least six months in a 12-month period.

The legislation also disallows investors from claiming travel expenses when travelling between properties, and plant and equipment tax deductions will be reined in.

Related content: CEO of Property Council hoses down vacant property tax speculation

Labor supported the change, but said it will do little to improve housing affordability.

The 2016 Census showed that there are 200,000 more vacant homes across Australia than there were ten years ago.

The new fine is intended to discourage foreign investors from leaving their properties vacant, and thereby free up housing stock to increase supply and improve housing affordability, particularly in the major cities of Sydney and Melbourne.

Click here to see the full details of the Bill.

Read more about investors leaving their properties vacant:

Chinese investors leave half their properties vacant: UBS

Almost 5% of Melbourne homes lie vacant

Penalties for leaving properties unoccupied could improve affordability