Australia

Australia

The Foreign Investment Policy 2025 tightens FDI oversight in sensitive sectors

14 Mar 2025

On 14 March 2025, Australia released an update to Australia’s Foreign Investment Policy. The updated policy provides clarity to stakeholders by outlining how Australia will give effect to streamlining and strengthening reforms to the foreign investment framework.

As part of these changes, Australia will dedicate greater resources and apply more scrutiny to reviewing investment proposals in sensitive sectors, including: 

  • critical infrastructure; 
  • critical minerals; 
  • critical technology; 
  • investments in proximity to sensitive Australian Government facilities; and 
  • investments which involve holding or having access to sensitive data sets.

The streamlining aspects of the measure are reported here: https://investmentpolicy.unctad.org/investment-policy-monitor/measures/5278/australia-updates-its-foreign-investment-policy---streamlining-processes-for-low-risk-investments

Nature of measure:
  • Entry restriction
Type:
  • Entry and establishment (Approval and admission - screening)
Industry:
  • Not industry specific
  • Manufacturing (Manufacture of chemicals and chemical products, Manufacture of basic pharmaceutical products and pharmaceutical preparations)
  • Services (Electricity, gas, steam and air conditioning supply, Water supply, sewerage, waste management and remediation activities, Transportation and storage, Telecommunications)
Inward FDI:
Yes
Outward FDI:
No
Sources: