Recent reforms to Australia's foreign investment regime,
including the Foreign Acquisitions and Takeovers Act 1975
(Cth), came into effect on 1 December 2015.
These reforms are generally to be welcomed on the basis they
simplify the application process and clarify some of the
ambiguities previously set out in the Foreign Investment Review
Board's (FIRB) policies. However, the reforms also provide for
some increased scrutiny with respect to acquisitions of land and in
the agricultural sector, including agricultural land and
agribusinesses. Additionally, the reforms formalise FIRB's
ability to review acquisitions and investments by foreign
government investors.
The February 2016 announcement by the Australian Treasurer that
new tax conditions will attach to foreign investment applications
may be of some concern. Some of the new requirements, like the
obligation to report all transactions that the Australian transfer
pricing or anti-avoidance rules may apply to,
