The government is reviewing foreign ownership of Australian assets. Under the current legislation, foreign investors are required to apply for approval to acquire an interest in certain types of real estate, start a new business and/or obtain interests in prospecting, exploration, production or mining tenements. Acquisitions of interests in an Australian business or corporation may also need to be notified.
The government has also announced that proposed reform of Australia’s foreign investment framework will take effect from 1 December 2015. The proposed changes aim to provide a modern and simpler foreign investment framework and include strengthening compliance and enforcement through the use of the Australian Taxation Office’s data matching systems, imposition of stricter penalties, requiring payment of application fees, increasing scrutiny in relation to applications concerning agriculture and improving transparency.
If you are not sure whether you need to apply for government approval for a proposed foreign interest or you would like us to assist you to apply, please contact the team at Jenkins Legal Services.