Introduction
Temporary changes to Australia's foreign investment approval
regime will affect deal-making for local private equity firms.
Firms with significant overseas investment in their funds are often
regarded as foreign investors. With all deals by foreign investors
now coming under the scrutiny of the Foreign Investment Review
Board, these firms are advised to prepare in advance of deals
emerging.
What changes have been made?
As part of the Federal Government's response to the COVID-19
pandemic, the federal government recently announced temporary
changes to Australia's foreign investment regime. The main
change is reducing the monetary screening thresholds to nil for any
transactions which are classified as 'significant actions'
or 'notifiable actions' for the purposes of the Foreign
Investments and Takeovers Act 1975 (Cth) (the
Act) – the main pillar of Australia's
foreign investment regime. Relevant monetary screening thresholds
prior to the recent
