New foreign investment regime update

From 1 December, 2015 Australia’s new foreign investment regime came into operation, implementing a suite of new applications requirements, processes and fees.

The Property Council were instrumental in negotiating a number of changes that have streamlined and simplified the process for industry, particularly for commercial property transactions or acquisition of land for residential development.

These include changes to the conditions around applications for annual programs of acquisitions, an alternative to the New Dwelling Exemption Certificate, and changes to notification thresholds for acquisitions of non-sensitive commercial land.

In the weeks prior to the new regime coming into operation, over 5,000 applications were lodged. This is a significant volume, and has resulted in delays in application processing across all asset and application classes.

The Property Council has secured commitments from Treasury and the ATO that will resolve a number of implementation issues, and we are continuing to work with government to resolve others.

On the 22 February 2016, the Treasurer also announced a suite of new provisions in relation to the ‘national interest test’, and formalised the involvement of the ATO in FIRB application review processes in relation to tax conditions.

The Property Council is working with Treasury to ensure that comprehensive guidance notes are made available to industry to clearly outline requirements.

If members are experiencing difficulties or delays due to the changed process, or would like any further information on any issues related to foreign investment, please contact Katharina Surikow or Andrew Mihno.

Further information, including guidance notes that outline the requirements for developers, investors and purchasers can be found on the FIRB website.