Will foreign investors still be able to apply?Īustralia continues to welcome foreign investment, which remains vital to our long-term economic success and stability. Without these changes, it is possible many normally viable Australian businesses would be sold to foreign interests without any government oversight, presenting risks to the national interest. There will likely be a rise in debt restructuring transactions for Australian businesses, along with opportunities to invest in distressed assets. Businesses are increasingly under pressure. Why is the Government doing this? What risks is the Government trying to protect against?Īustralia is being fundamentally disrupted by the coronavirus, including potentially threatening economic security and the viability of critical sectors. These are temporary measures that will remain in place for the duration of the coronavirus crisis. Starting from the Government’s announcement of 10:30 pm AEDT 29 March 2020, proposed foreign investment into Australia subject to the Act will require approval, regardless of value or the nature of the foreign investor. When do these changes have effect and how long will these measures be in place? If you are concerned that you may be a party to a proposed transaction that will require FIRB approval, it is important that you understand your legal obligations and rights under the Act, and seek legal advice regarding your particular circumstances as necessary. But in this time of crisis, the Government needs oversight of all foreign investment activity to ensure it is consistent with the standards that would normally be applied and what the community expects. The changes will apply to all foreign persons subject to the Act, irrespective of the investor’s country of origin, and irrespective of whether they are a private foreign investor or a foreign government investor.įoreign investors will play a key role in supporting our economic recovery.
In doing so, the Government will prioritise urgent applications for investments that protect and support Australian businesses and Australian jobs. To ensure sufficient time for screening applications, the Foreign Investment Review Board (FIRB) will work with existing and new applicants to extend timeframes for reviewing applications from 30 days to up to six months. There are already a range of proposed acquisitions that are subject to $0 thresholds under existing rules, for example all acquisitions by foreign government investors, private acquisitions in Australian media businesses, residential land proposals, mining and production tenements, and vacant commercial land proposals. This temporary change will be achieved by reducing the monetary screening thresholds to $0 for all foreign investments under the Act.
Starting from 10:30 pm AEDT 29 March 2020, proposed foreign investments into Australia subject to the Foreign Acquisitions and Takeovers Act 1975 (the Act) will require approval, regardless of value or the nature of the foreign investor. Zero monetary screening thresholds for all What is changing and what is staying the same?
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