Foreign Acquisitions and Takeovers Act 1975

PART 5 - OFFENCES AND CIVIL PENALTIES  

Division 3 - Civil penalties  

Subdivision C - Civil penalties relating to residential land  

SECTION 94   ACQUISITION OF INTERESTS IN RESIDENTIAL LAND  

94(1)    

A foreign person who proposes to take a notifiable action or notifiable national security action that is a residential land acquisition must not take the action if the foreign person has not given a notice relating to the action under section 81 .

Note: If a person takes an action by entering an agreement, the action is not taken until the agreement is binding on the person (see subsections 15(4) and (5) ).

94(2)    

If:

(a)    a foreign person gives a notice to the Treasurer stating that any of the following actions are proposed to be taken:

(i) a significant action (including a significant action that is a notifiable action) that is a residential land acquisition;

(ii) a notifiable national security action that is a residential land acquisition;

(iii) a reviewable national security action that is a residential land acquisition; or

(b)    both:

(i) a foreign person proposes to take an action that is a residential land acquisition; and

(ii) the Treasurer has given a notice under subsection 66A(4) in relation to the action;

the foreign person must not take the action before the day mentioned in section 82 .

94(3)    
A person who contravenes subsection (1) or (2) is liable to a civil penalty.

Penalty

94(4)    

The maximum penalty for the contravention is the greatest of the following:

(a)    

double the amount of the capital gain that was made or would be made on the disposal of the interest in the relevant residential land;

(b)    

50% of the consideration for the residential land acquisition;

(c)    

50% of the market value of the interest in the relevant residential land.

Note 1: Consideration is defined by the regulations (see section 4 ).

Note 2: For how to work out the capital gain, see section 98 .