- Foreign Investment Guidelines
- Arrangements For International Business Visitor Visas
- Assistance from Invest Australia
Foreign Investment Guidelines
Australia’s foreign investment policy is designed to encourage investment consistent with the interests of the Australian community. The Government recognises the substantial contribution foreign investment has made, and will continue to make, to the development of Australia’s industries and resources.
The Foreign Acquisitions and Takeovers Act 1975 (FATA) applies to foreign companies in which a foreign company or natural person holds a substantial interest, being 15 percent or more, or where two or more foreign entities hold 40 percent or more.
Proposals by foreign companies to invest in Australia which require notification and prior approval include:
- proposals to acquire a controlling interest in existing Australian businesses (including those involved in petroleum exploration or production), where assets exceed A$50 million or the proposal values the business at over A$50 million (or A$831 million for US investors for the calendar year 2006);
- proposals to establish a new business (for example a petroleum development project) involving a total investment of A$10 million or more; and
- proposals to acquire land, or acquire a lease or licence over land for a period of greater than five years. Proposals involving land acquired directly from the Commonwealth, a State or Territory government, or developed commercial real estate valued at less than A$50 million (A$831 million for US investors), or land that is being used for a primary production business, do not require approval.
All such proposals valued in excess of A$100 million are subject to detailed examination. Proposals are normally approved subject to them not being determined to be contrary to the national interest.
The Australia United States Free Trade Agreement, which came into effect on 1 January 2005, introduced new notification thresholds for US investors, namely A$831 million instead of the general A$50 million threshold that would otherwise apply. Proposals by US investors to establish new businesses (such as a new petroleum development project) do not require notification although other relevant policy requirements continue to apply.
Foreign companies acquiring an interest in a new or existing petroleum exploration permit are not required to seek approval under the Policy. All foreign governments, their agencies or companies owned or controlled by governments are required to seek prior approval for any direct investment (including exploration) in Australia, irrespective of size (including in the oil and gas industry).
Further information on the Government's foreign investment policy may be obtained from the Foreign Investment Review Board:
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The Executive Member Foreign Investment Review Board c/- The Treasury Langton Crescent PARKES ACT 2600 AUSTRALIA |
Telephone: +61 2 6263 3795 Facsimile: +61 2 6263 2940 Website: www.firb.gov.au |