Evaluation of the 2021 foreign investment reforms submission

 

The Property Council welcomes the opportunity to comment on Treasury’s consultation paper regarding its evaluation of the 2021 foreign investment reforms (the consultation paper). 

Australia’s foreign investment review framework has undergone a series of major changes since 2015 – in particular the most recent 2021 changes – which have had a significant impact on the flow of foreign capital into Australia. Alongside these changes, the tremendous impacts of the COVID-19 pandemic on financial markets and business activity also affected foreign investor sentiment across the globe over the last 18 months. 

We are increasingly concerned that global investors in commercial real estate are viewing Australia as having more stringent, complex and costly regulatory and tax policy settings compared with other developed markets.

Improving FIRB and other aspects of Australia’s foreign investment framework will thus need to be considered closely to help attract the necessary levels of foreign capital for our economic needs.