The Federal Government has announced temporary changes to the foreign investment review framework which will remain in place for the duration of the Coronavirus pandemic.
All proposed foreign investments into Australia subject to the Foreign Acquisitions and Takeovers Act 1975 (Cth) will require approval by the Foreign Investment Review Board (FIRB), regardless of the value or the nature of the foreign investor.
This is implemented by:
Nil monetary screening threshold
- The monetary screening threshold is now $0 for all foreign investment applications.
- Transactions that were previously exempt from FIRB approval will now require this approval.
Extended deadline to review applications
- The timeframe for FIRB to review an application has been extended from 30 days to 6 months. This extension also applies to all existing applications.
- Transactions conditional on FIRB approval being obtained within 30 days should be reviewed.
Additional conditions
- Additional conditions may be applied to an approval granted by FIRB to address identified risks on a non-discriminatory basis.
- Foreign investors may be subject to additional conditions and incur costs in order to comply with the conditions.
Applications that support Australian businesses and jobs will be prioritised
- Applications will also be assessed on a case by case basis to ensure that the proposed investment is not contrary to national interest, including economic and national security.
If you have any queries or would like any further information about this article, please contact:
David Shelley
Managing Principal
M: 0427 183 217
E: dshelley@pageseager.com.au
Daniel Morgan
Principal
M: 0438 436 968
E: dmorgan@pageseager.com.au
Published: 3 April 2020
