Expands the list of critical assets subject to FDI approval
02 Dec 2021
On 2 December 2021, the Security Legislation Amendment (Critical Infrastructure) Act 2021 (SLACI Act) entered into force. In light of increasing security threats identified during the legislative process, the Act fast-tracks certain changes to the Security of Critical Infrastructure Act 2018 (SOCI Act) initially proposed by the Security Legislation Amendment (Critical Infrastructure) Bill 2021. The Amendment Act significantly expands the types of critical infrastructure assets contained in the SOCI Act , which consequently broadens the meaning of "national security business" as defined in the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA) and corresponding regulations, the Foreign Acquisitions and Takeovers Regulation 2015 (Cth) (FATR).
The following were added to the list of critical infrastructure assets: Telecommunications; Broadcasting; Domain name systems; Data storage or processing; Banking; Superannuation; Insurance; Financial market infrastructure; Energy market operator; Liquid fuel; Hospital; Education; Food and grocery; Freight infrastructure; Freight services; Public transport; Aviation; and Defence industry.
If a foreign investor proposes to invest in an Australian national security business, the action is likely to be considered a notifiable national security action which will require preapproval from the Federal Treasurer of Australia.
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Type:
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Entry and establishment (Ownership and control, Approval and admission)
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Industry:
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Services (Electricity, gas, steam and air conditioning supply, Transportation and storage, Publishing, audiovisual and broadcasting activities, Telecommunications, Computer programming, consultancy and related activities, Financial and insurance activities, Public administration and defence; compulsory social security, Education, Human health activities)
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