.svg){kind=small}
%402x.svg){kind=small}
Australia’s foreign investment policy consists of five elements:
1. Legislation
The Foreign Acquisitions and Takeovers Act 1975 (FATA) is the legislative framework for the foreign investment screening regime.
Foreign owners pay an annual vacancy fee on residential properties not rented or occupied for more than 183 days (6 months in any 12 month period).
2. Australia’s foreign investment policy
- The FATA provides guidance to foreign investors.
- Private foreign investors must seek approval (upwards of 15%) in an Australian business valued above $248 million (in 2013 prices, indexed annually).
- All foreign government owned investors require Government approval, irrespective of the asset value
- New Zealand and United States investors, $248 million threshold only applies for certain sensitive sectors. Otherwise, a $1,078 million threshold applies.
3. The Treasurer
- The Treasurer is responsible for all foreign investment.
- The FATA allows the Treasurer to decide if foreign investments are not in the Australian national interest.
- The Treasurer can block proposals.
- Applicants have no right of administrative or judicial review.
- The Administrative Decisions (Judicial Review) Act 1977exempts decisions under FATA from judicial review.
4. The Foreign Investment Review Board
- The Treasurer is advised and assisted by the Foreign Investment Review Board (FIRB).
- The FIRB is an administrative body with no statutory existence.
- Treasurer decisions are underpinned by analysis and recommendations made by the FIRB.
5. Prescribed sensitive sectors
- Separate legislation imposes requirements and/ or limits on foreign investment in the following areas:
• the banking sector—Banking Act 1959, the Financial Sector (Shareholdings) Act 1998.
• airports — the Airports Act 1996 limits ownership to 49%
• the shipping industry — the Shipping Registration Act 1981
• the telecommunications sector—ownership of Telstra is limited to 35%, individual foreign investors to a maximum of 5%.
