On 29 March 2020 the Federal Government announced changes to the foreign investment review regime as Australia continues to deal with the economic implications of COVID-19.
Once the legislation is passed, effective from 29 March 2020, all proposed foreign investment into Australia subject to the Foreign Acquisitions and Takeovers Act 1975 will require approval, regardless of the value of the investment or nature of the foreign investor. This is to be achieved by reducing to $0 the monetary screening thresholds for all foreign investment under the Act.
Prior to the announcement, Foreign Investment Review Board (FIRB) approval was particularly relevant for:
investments in residential and commercial real estate (including vacant land);
investments in agriculture (both primary production andprocessing);
starting a new business or making greater than 20% stakes in existing businesses (above a monetary threshold); or
where the investor was a foreign government or entity.
The removal of the monetary threshold effectively means FIRB approval will be needed for any direct investment into the Australian economy by a foreign entity (including government).
FIRB will also extend the timeframes for reviewing existing and new applications from 30 days to up to 6 months.
For further information in relation to the Federal Government’s announced changes to the foreign investment review framework or any other advice or assistance in light of the COVID-19 outbreak, please contact:
Phil Broderick
Principal
T +61 3 9611 0163 l M +61 419 512 801
E pbroderick@sladen.com.au
Denise Tan
Senior Associate
T +61 3 9611 0160 | M +61 438 714 965
E dtan@sladen.com.au
Sam Campbell
Senior Associate
M +61 423 515 454 | T +61 3 9611 0135
E scampbell@sladen.com.au
