Changes have been temporarily made to the foreign investment review framework in light of COVID-19, to protect Australia’s economic interest, the Treasurer Josh Frydenberg has announced.
Effective from 29 March, 2020, all proposed foreign investments subject to Foreign Acquisitions and Takeovers Act 1975 will require approval, regardless of value or the nature of the foreign investor.
The change would be achieved by reducing the monetary screening threshold to $0 for all foreign investment, which the Government hoped would improve oversight. As a result, the timeframe for reviewing applications would increase from 30 days to up to six months.
Frydenberg, stressed the change was not a ‘freeze’ on foreign investment but that applications for investments to protect and support Australian businesses and Australian jobs would be prioritised and applications would be reviewed on a case-by-case basis.
Frydenberg said: “Even in these uncertain times, Australia continues to welcome foreign investment, which remains vital to our long-term economic success and stability. The Government recognises that foreign investment will play an important part in helping many businesses get to the other side – securing jobs and supporting our economic recovery.
“However, these measures are necessary to safeguard the national interest as the coronavirus outbreak puts intense pressure on the Australian economy and Australian businesses.”
The changes would remain in place for the duration of the crisis.
