Treasurer Joe Hockey has flagged high fees for foreign citizens to buy Australian residential property, much higher than the $1,500 administrative charge recommended in a report by the House of Representatives Economics Committee.

"For any foreign investor that wants to buy a residential property under a million dollars there will be a $5,000 application fee. Over a million dollars, it will be $10,000 for every extra million dollars in the purchase price," Hockey told reporters at a press conference in Sydney.

"Secondly, there will be a new register set up so that we know how many foreign residential and agricultural property owners are in Australia, who they are, which is a very important form of reassurance to the Australian people.

"And, if anyone does break the law then we can fine them up to 25 per cent of the value of the property as well as forcing them to sell the property."

Hockey said the proposed measures are designed to restore confidence in a foreign investment review system that has not prosecuted anyone for breaching the rules since 2006.

Prime Minister Tony Abbott said the fees and fines will bring Australia into line with other countries like Hong Kong, Singapore and New Zealand. "The idea is not to deter foreign investment, the idea is to ensure that the rules are enforced," Abbott told reporters.