The Federal Treasurer has announced that a new national
security test will be introduced into Australia's foreign
investment regime from 1 January 2021. The new test is intended to
help the government screen for foreign interference in
'sensitive national security businesses', and will have
particular significance for transactions in the communications,
technology and data sectors.
In
our 2019 article, we queried whether the foreign investment
review board (FIRB) would seek broader powers to
screen transactions for technology and data assets. We noted
concerns of security agencies that many such transactions
(particularly in relation to emerging technologies) fall below the
monetary thresholds at which FIRB oversight kicks in. Moreover,
while FIRB has power to regulate acquisitions, it does not review
other types of transactions through which access to technology
might be obtained, such as technology development and licensing
transactions.
