Issues Guidance No. 8 on National Security
01 Jul 2023
On 1 July 2023, the Government of Australia issued Guidance No. 8 on National Security. The guidance is intended to provide information to investors on the operation of the foreign investment framework with regards to national security, including information on the types of actions that may pose national security risks. Key points include:
• The guidance aims to help investors understand which types of investments may pose national security risks and where voluntary notification to the Foreign Investment Review Board (FIRB) is encouraged.
• It covers "notifiable national security actions" which require mandatory FIRB approval, including: starting a national security business, acquiring a direct interest in a national security business and acquiring an interest in national security land.
• National security businesses include those in defense, national intelligence, critical infrastructure, telecommunications, and other sensitive sectors.
The guidance also discusses "reviewable national security actions" where voluntary notification is encouraged, such as investments in critical minerals, defense and intelligence personnel, critical technologies, data centers and cloud providers, and energy, water, and other critical infrastructure. It provides sector-specific guidance for areas like financial services, communications, energy, health, space, and transport.
The Treasurer has powers to review transactions on national security grounds, including a "call-in" power for up to 10 years after a transaction if not voluntarily notified. There is also a "last resort" power allowing the Treasurer to impose conditions or force divestment of previously approved investments in certain circumstances.
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Type:
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Entry and establishment (Approval and admission)
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Promotion and facilitation (Investment facilitation )
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Industry:
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