AUSTRALIA: Consultation on Australia foreign investment changes

Tuesday May 19 2015

Following on from the update of 6 May, the Australian Treasury has announced a consultation on changes to the Australia foreign investment regime.

The Modernisation Options Paper seeks views on proposed options to modernise and simplify Australia`s foreign investment framework. The proposed options include:

• Incorporating policy only notification and prior approval requirements under Australia`s Foreign Investment Policy (the Policy) into the legislative framework. The Policy would still provide guidance on operational issues and the application of the national interest to particular types of investments.
• Updating the legislation to reflect current administrative practices and regulatory concepts, as well as for modern business and corporate finance practices. This includes increasing legal certainty under the framework (by legislating to allow: applicants to voluntarily agree to extend the screening period; and the Treasurer to vary the enforceable conditions (subject to a no detriment test), and impose conditions if applicants fail to notify).
• Exempting proposals that are unlikely to affect the national interest and increase the consistency of exemptions across the different acquisition types.
• Amending the legislation so that it applies irrespective of the transaction structuring (for example, moving from shares to securities, inclusive of units in trusts, and providing similar outcomes whether a direct or indirect acquisition (for example, acquiring a property or its holding company)).

The Modernisation Options Paper is related to the 25 February 2015 Options Paper Strengthening Australia`s Foreign Investment Framework, feedback on which is now available on the Treasury website.

The closing date for submissions is Friday, 29 May 2015.

Click on the above link for the Modernisation Options Paper.