ARTICLE · 11 MARCH 2015

Foreign acquisitions of agricultural land - more details on rule changes

Clayton Utz

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More changes are flagged for agribusiness, residential real estate and the FIRB regime, and an options paper released.

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Key Points:

More changes have been flagged for agribusiness, residential real estate and the FIRB regime generally, and an options paper released, by the Federal Government.

The new threshold for agricultural land

On 11 February 2015 the Australian Treasurer announced that the threshold for Foreign Investment Review Board (FIRB) review of purchases of agricultural land will be reduced from $252 million to $15 million with effect from 1 March 2015, with the $15m threshold to be applied to the cumulative value of all agricultural land owned by the foreign person.

The new review threshold for purchases of agricultural land will be implemented through Australia's Foreign Investment Policy. A 2015 edition of the Policy has now been released. The revised Policy incorporates the new threshold and fleshes out the details of its application.

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