Investment
Foreign Investment Review Board
The Board examines proposals by foreign interests to undertake direct investment in Australia and makes recommendations to the Government on whether those proposals are suitable for approval under the Government’s policy.
The main functions of the Board are:
- to examine proposals by foreign interests for investment in Australia and, against the background of the Government’s foreign investment policy, to make recommendations to the Government on those proposals;
- to advise the Government on foreign investment matters generally;
- to foster an awareness and understanding, both in Australia and abroad, of the Government’s foreign investment policy;
- to provide guidance, where necessary, to foreign investors so that their proposals may be in conformity with the policy; and
- to monitor and ensure compliance with foreign investment policy.
The Board’s functions are advisory only. Responsibility for the Government’s foreign investment policy and for making decisions on proposals rests with the Treasurer. Many of the decisions requiring Ministerial consideration are made by the Assistant Treasurer.
The Board is assisted by an Executive which is part of the Treasury and also has available to it advice from other Commonwealth and State Government departments and authorities.
Real Estate
The real estate category covers investment in:
- residential real estate (including property that is zoned other than residential real estate but including a component of residential);
- commercial real estate;
- rural land;
- accommodation facilities; and
- urban land corporations/trusts, ie the trust or corporation holds more than 50 per cent of its assets in urban land (vacant or developed).
This category also includes a section on compliance issues.
Who is exempt?
Refer to Exemptions for acquisitions which do not require notification and approval.
Entering into a contract
If an acquisition is not exempt, foreign purchaser(s) must notify the Government prior to acquiring the interest. If they enter a contract, it should be conditional upon foreign investment approval, and they should ensure that it remains conditional until after foreign investment approval is granted.
Foreign persons are in breach of the FATA if they enter an unconditional contract to acquire property (or if their conditional contract becomes unconditional) before approval is granted and may be subject to significant penalties.
More Frequently Asked Questions (FAQ’s)
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