Reforms to boost Foreign Investment in Australia

Posted: 05/08/2009 Pursuant to the reforms announced by the Treasurer today, the Government will: 1. Replace the four lowest thresholds for private business investment, with the highest of these – a single threshold of 15 per cent in a business worth $219 million. This means private foreign investment in Australian businesses below $219 million can proceed without review. 2. Index the new unified threshold on 1 January every year to keep pace with inflation and to prevent foreign investment screening from becoming more restrictive over time. 3. Abolish the existing requirement that private investors notify the Government when establishing a new business in Australia valued above $10 million. Based on 2008-09 figures, around 20 per cent of all business applications will no longer be screened by the Foreign Investment Review Board. In announcing the reforms, the Treasurer stated that they were "aimed at boosting Australia's growth as the global economy recovers – streamlining Australia's foreign investment regime, cutting red tape and compliance costs, and improving Australia's competitiveness as a place to invest." The Government aims to introduce amending regulations in September 2009 to give effect to today's announcement.