Under the Foreign Acquisitions and Takeovers Act 1975 (the "FATA"), foreign investors acquiring investments in Australia may require approval from the Foreign Investment Review Board ("FIRB"). The compliance requirements and potential delays are sometimes seen as disincentives to invest in Australia.
Earlier this week, the Treasurer announced changes that will relax the relevant exemption thresholds applicable to acquisitions of Australian businesses (including acquisition of shares). It is believed that these changes may increase capital in-flows into Australia.
Entities dealing with or advising on merger and acquisition transactions should take note of the proposed changes.
The proposed changes are set out in the table below:
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Current Thresholds |
Proposed Thresholds |
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Please note that there are existing thresholds that apply to acquisitions of commercial non-residential real estate properties which will continue to apply. There are also existing restrictions applicable to acquisition of residential properties.
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