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  • Major reforms to foreign investment framework

    The Australian Government recently announcedExternal Link significant reforms to the Foreign Acquisitions and Takeovers Act 1975 (the FATA).

    The reform measures ensure Australia’s foreign investment framework keeps pace with emerging risks, global developments, and changes to foreign investment regimes in comparable countries, by:

    • addressing national security risks
    • strengthening the existing system
    • streamlining investment in non-sensitive businesses.

    In July 2020, the government will release exposure draft legislation for six weeks' consultation. The legislation will then be introduced to parliament, with the reforms scheduled to commence on 1 January 2021.

    The reform package will not immediately affect the temporary changes to the foreign investment frameworkExternal Link, which reduced the monetary screening threshold to $0 on all foreign investments. This will remain in place to safeguard national interest whilst dealing with the economic implication arising from the coronavirus (COVID-19).

    Treasury welcomes feedback on the reform measures and the exposure draft legislation. To provide feedback or ask questions, phone Treasury on +61 2 6263 3795 or email FIRBEnquiries@treasury.gov.au.

    See also:

    Last modified: 02 Jul 2020QC 63088