Updates its Guidance Notes related to its foreign investment framework
01 Jan 2024
On 1 January 2024, the Government of Australia updated five Guidance Notes related to its foreign investment framework. Here are the key updates:
• Guidance Note 3 on agricultural land outlines the requirements for foreign investors seeking to acquire agricultural land, stipulating that investments exceeding a cumulative threshold of $15 million require notification to the Treasurer. It emphasizes an open and transparent sale process, ensuring Australian investors have equal opportunities to invest. Additionally, it mandates registration of transactions involving agricultural land and water rights in the Register of Foreign Ownership of Australian Assets.
• Guidance Note 4 on commercial land stipulates that foreign investors generally need approval for acquiring interests in commercial land, with specific monetary thresholds: $0 for vacant land and $330 million for developed land, unless classified as sensitive, which lowers the threshold to $71 million. Foreign government investors require approval for all acquisitions, regardless of value or sensitivity. The guidance also emphasizes the need for transparency in sales and conditions for productive use of vacant land to ensure equal investment opportunities for Australian investors.
• Guidance Note 5 on mining focuses on the specific considerations and requirements for foreign investment in the mining sector, addressing regulatory expectations and compliance measures for investors.
• Guidance Note 7 on business investments outlines the requirements for foreign investors seeking to acquire interests in Australian businesses, emphasizing that investments over $275 million typically require the approval of the Foreign Investment Review Board (FIRB). It also specifies that foreign government investors must obtain approval for all acquisitions, regardless of value. The guidance also highlights the importance of assessing the impact of the investment on the Australian economy and ensuring compliance with national interest considerations.
• Guidance Note 15 on the Register of Foreign Ownership of Australian Assets establishes a framework for foreign investors to notify the Registrar about their interests in various Australian assets, including land and businesses. The Register replaces previous registers for agricultural and residential land, broadening the scope of assets that must be reported and enhancing compliance requirements. It aims to improve government visibility of foreign investments and ensure adherence to Australia's foreign investment laws.
The Guidance Notes are available at: https://foreigninvestment.gov.au/guidance
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Type:
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Promotion and facilitation (Investment facilitation )
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Industry:
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Not industry specific
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Primary (Agriculture, forestry and fishing, Mining and quarrying)
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Sources:
