The Foreign Acquisition and Takeovers Act 1975 (Cth) (the Act) provides the legislative framework governing in-bound foreign investment in Australia. The Act provides for the Treasurer or his or her delegate (usually the Assistant Treasurer) to examine and review proposals for foreign investment and determine whether they are contrary to Australia’s national interest. The Treasurer has authority under the Act to prohibit or require divestment of foreign investments if they are considered to be contrary to the national interest.

Australia’s foreign investment policy (Policy) provides guidance to foreign investors regarding how the Act will be applied by the Australian Government. It also identifies a number of investment proposals which need to be notified, even if the Act does not appear to apply.

The Foreign Investment Review Board (FIRB) examines proposals by foreign persons to invest in Australia and makes recommendations to the Treasurer on those investments which are subject to regulation by the Act and/or the Policy. When considering foreign investment regime in Australia, it is important to appreciate that the notification thresholds and requirements of the Act and the Policy are not identical. The practice in Australia is to notify all transactions which are subject to regulation by either the Act and/or the Policy.

In addition to the Act and the Policy, the Foreign Acquisitions and Takeovers Regulations 1989 (Cth) provide a number of exceptions to the notification requirements in the Act and also provide for annual indexation of transaction values that trigger notification requirements.

See When is foreign investment notification required?

See National interest considerations in foreign investment applications.

See Foreign investment notification.

See Timing and Confidentiality of foreign investment applications.