AUSTRALIA: Changes to Australia foreign investment rules in agriculture and real estate

Wednesday May 6 2015

The Foreign Investment Review Board has announced a number of Australia foreign investment changes, to enter into effect in December 2015, which will impact on investments in the agriculture and real estate sectors.

Compliance and enforcement of the foreign investment rules in respect of residential real estate will be transferred to the Australian Taxation Office between now and 1 December 2015.

Stricter penalties will also be enforced. The existing criminal penalties (which will be increased from $85,000 to $127,500 for individuals) and divestment orders will be supplemented by civil pecuniary penalties and infringement notices for less serious breaches of the residential real estate rules.Third parties who knowingly assist a foreign investor to breach the rules will also now be subject to civil and criminal penalties.

Application fees are also to be introduced.

Following on from the March 2015 lowering of the screening threshold for agricultural land from $252 million to $15 million, a $55 million threshold (based on the value of the investment) for investments in agribusiness will be introduced to capture certain downstream activities with links to primary production.

Finally, an agricultural land register with information provided directly to the Australian Taxation Office by investors will be established from 1 July 2015.

Click on the above link for more details.