Trade in Services and Investment1
A. The following investments2 are subject to approval by the Australian Government and may also require notification3 to the Australian Government:
- a proposed investment by a 'foreign person'* in an entity or Australian business valued above $A 266 million†;
- a proposed direct investment by a 'foreign government investor'4 of any interest regardless of value;
- a proposed investment by a foreign person* of 5 per cent or more in the media sector, regardless of the value of the investment;
- a proposed acquisition by a foreign person* of an interest in developed commercial land5 where the value of the interest is more than $A 266 million†, unless the land meets the conditions for the lower developed commercial land threshold of $A 58 million†6.
Investments may be refused, subject to orders, or approved subject to conditions. Foreign persons* that do not comply with the foreign investment framework may be subject to civil and criminal penalties.
For greater certainty, where an investment could qualify for the application of one or more of the above screening thresholds, approval or notification requirements apply from the lowest applicable threshold.
Separate or additional requirements may apply to measures subject to other Annex I entries and to sectors, sub-sectors or activities subject to Annex II.
B. The acquisition of a stake in an existing financial sector company by a foreign investor, or entry into an arrangement by a foreign investor, that would lead to an unacceptable shareholding situation or to practical control7 of an existing financial sector company, may be refused, or be subject to certain conditions8.
* The term "foreign person" has the meaning set out in the Foreign Acquisitions and Takeovers Act 1975 (Cth)and Foreign Acquisitions and Takeovers Regulation 2015 (Cth).
† This is the figure as at 1 January 2019. To be indexed annually on 1 January.