COVID-19 – changes to foreign investment review regime

TaxCommercial TransactionsProperty Law
Written By Paul Gray

On 29 March 2020 the Federal Government announced changes to the foreign investment review regime as Australia continues to deal with the economic implications of COVID-19.

Once the legislation is passed, effective from 29 March 2020, all proposed foreign investment into Australia subject to the Foreign Acquisitions and Takeovers Act 1975 will require approval. This is to be achieved by reducing to $0 the monetary screening thresholds for investments under the Act. 

The removal of the monetary threshold effectively means Foreign Investment Review Board (FIRB) approval will be needed for any direct investment into the Australian economy by a foreign entity (including government), including:

  • residential and commercial real estate (including vacant land);

  • agriculture (both primary production and processing);

  • new businesses (or acquiring greater than 20% stakes in existing businesses (above a monetary threshold)).

FIRB will also extend the timeframes for reviewing existing and new applications from 30 days to up to 6 months.

For further information in relation to the Federal Government’s announced changes to the foreign investment review framework, please contact:

Paul Gray
Principal
T: 03 5225 5231
E: pgray@ha.legal

Rod Payne
Principal
T: 03 5226 8541
E: rpayne@ha.legal

Paul Gray https://www.harwoodandrews.com.au/paul-gray
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