Thursday July 29 2021
News Source: Global Disclosures
Focus: Foreign Investment
On 1 January 2021, major reforms to Australia’s foreign investment review framework came into effect to address these risks and improve the overall operation of the framework.
The reforms updated the framework in three broad ways:
- they addressed national security risks;
- strengthened the existing system, including in relation to compliance; and
- streamlined investment in non-sensitive businesses.
The reforms also set up a framework to establish a register of foreign ownership of Australian assets.
The reforms were enacted through the Foreign Investment Reform (Protecting Australia’s National Security) Act 2020 and the Foreign Acquisitions and Takeovers Fees Imposition Amendment Act 2020, along with supporting regulations: the Foreign Investment Reform (Protecting Australia’s National Security) Regulations 2020 and the Foreign Acquisitions and Takeovers Fees Imposition Regulations 2020 – herein together referred to as the ‘Reform Acts’
Following the implementation of the new rules, the Australian Treasury is conducting an evaluation of the new foreign investment reforms which commenced on 1 January 2021. To help inform this evaluation, the Treasury is now inviting interested stakeholders to submit written submissions on the operation and performance of the reforms.
Submissions close on 31 August 2021.
Click on the link above for further information.