Australia

Australia

Tightening of the foreign investment review framework

01 Jan 2021

On 9 December 2020, the Parliament passed legislation to reform the Foreign Acquisitions and Takeovers Act of 1975. The reforms, in force as of 1 January 2021, makes the $0 monetary threshold for mandatory screening of investments in sensitive national security businesses, introduced as a temporary measure in March 2020, permanent. It requires foreign investors to: - Seek approval for all investments in land or businesses (including starting such a business) that is sensitive to national security, regardless of value. - Be subject to enhanced monitoring and investigation powers, as well as stronger and more flexible enforcement options and penalties. - Continue bearing the costs of administering the foreign investment regime, under a reformed fee framework.

Guidance material to assist investors with the transition to the new system was published on the website of the Foreign Investment Review Board.