Australia s foreign investment regime
There is no specific regime relating to venture capital investment. Australia has a foreign investment regime which applies to certain acquisitions. The Australian Government’s foreign investment regime, generally speaking, encourages foreign investment in Australia. The regime consists of the
Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA), associated legislation and various regulations. The regime is also supported by Australia s Foreign Investment Policy (Policy) and around 50 guidance notes released by the Foreign Investment Review Board (FIRB), which are updated from time to time. The Australian Treasurer administers the FATA with the advice and assistance of FIRB.
Under Australia s foreign investment regime, foreign persons are required to notify FIRB of certain transactions and obtain clearance before proceeding with certain transactions. Voluntary notifications can also be made in certain circumstances.
Australia introduced the
Foreign Acquisitions and Takeovers Act 1975 (Cth) to regulate the acquisition of land and assets in Australia, by foreign persons or entities. It imposed reporting obligations on foreign persons and entities engaging in transactions, and provided the Federal Government extensive powers to monitor and intervene in transactions involving foreign persons.
From 1 January 2021, the following laws have come into force which have amended the current Foreign Investment Review Board (
FIRB) regime:
Foreign Investment Reform (Protecting Australia s National Security) Regulations 2020 (Cth).
National Security Business and National Security Land
The biggest change is to the acquisition of land and businesses deemed to be in the national interest. The reforms require mandatory notification of:
Government calls for informants to flag illegal foreign buyers
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The federal government has launched a new “tip off” campaign that urges people to inform on foreigners suspected of illegally purchasing Australian residential real estate.
Treasurer Josh Frydenberg has announced that the federal government is launching a new “tip off and compliance campaign”, which seeks to ensure foreign persons purchasing residential real estate in Australia aren’t breaking foreign investment rules.
It also aims to ensure that those who are breaking the rules “are subject to appropriate penalties”.
Under Australia’s foreign investment framework, foreigners seeking to purchase residential real estate in Australia generally need to apply for approval through the Foreign Investment Review Board (FIRB).
Date Time
Rebuilding and reforming in a year like no other
The Morrison Government has this year passed major pieces of legislation to cushion the blow of the COVID-19 pandemic, keeping Australians in jobs, businesses in business and sparking a faster-than-anticipated economic recovery.
Despite 2020’s challenges, the Government has also successfully delivered on its promises to cut red tape and improve Australia’s economic competitiveness, with reforms to the tax system, insolvency, financial services and foreign investment.
In total, the Government passed more than 40 pieces of legislation in 2020 from the Treasury Portfolio, including:
JobKeeper
A key feature of the Government’s Economic Recovery Plan is the temporary JobKeeper Payment which has been an economic lifeline to millions of Australians, helping to keep businesses in business and Australians in jobs.