Chris Bowen
The Federal Government will alter foreign investment policy to increase competition across the economy, Assistant Treasurer and Minister for Competition Policy and Consumer Affairs Chris Bowen confirmed today.
Under the new rules, the timeframe for the development of vacant commercial land will be extended from 12 months to five years.
“The current time limit on foreign investors discourages new competitors from entering the market and prevents some existing competitors from expanding their business because they cannot secure forward purchases of land in growth areas and ‘Greenfields’ sites,” Bowen said.
The changes come as a response to concerns that 12 months is insufficient time to complete the statutory and commercial processes required to enable development to commence.
“The Rudd Government believes that a five year limit strikes the right balance between encouraging competition while preventing foreign investors from land banking and speculating.
“This reform creates a more level playing field and pulls down the barriers to entry to foster competition,” he said.
