FIRB changes scheduled to commence 1 December

Changes to the Foreign Acquisition and Takeovers Act 1975 (Cth) (Act) are currently scheduled to commence on 1 December 2015 (subject to final government approval). While further changes may be made to the draft amendments, it is likely that the changes will be in substantially the same form as the current draft.

In contemplation of the changes to the foreign investment regime, the Australia Taxation Office (ATO) is currently undertaking a foreign investment compliance review. As part of the review, a concessional treatment for breaches is being applied (at the discretion of the ATO for matters not currently under investigation) until 30 November 2015. Under the concessional treatment, the ATO may allow investors who are in breach of the Act a period of 12 months to sell the premises. After the concessional period investors will only have 90 days to sell their property.