Policy and Supporting Documents

The policy statement below, read in conjunction with the recent changes to the law outlined on this page, provides an overview of Australia's foreign investment regime.  The two additional documents provide administrative guidelines to assist foreign persons (and persons acting on their behalf) when submitting applications.

Australia's Foreign Investment Policy [June 2010]	PDF [134KB]	RTF [711KB]
How to Apply — Residential Real Estate [April 2010]	PDF [78KB]	RTF [710KB]
How to Apply — Business Proposals [August 2010]	PDF [68KB]	RTF [598KB]

Changes to Foreign Investment Policy – Residential Real Estate

On 24 April 2010, the Assistant Treasurer announced changes to the screening of foreign investment in residential real estate.  From 24 April, temporary residents need to notify the Government and receive approval before buying residential real estate in Australia (these changes were confirmed through regulations, which commenced on 26 May 2010 - see Foreign Acquisitions and Takeovers Amendment Regulations 2010).

Temporary residents may apply to buy vacant land on which to build (subject to development conditions), new dwellings and/or an established (second hand) dwelling to be used as their residence in Australia.  Where the Government provides approval to buy an established dwelling, it will be subject to a condition that the temporary resident sells the property when it ceases to be their residence.

Applications to buy established dwellings for investment purposes will not be approved.  See how to apply for more details.

Amendments to the Foreign Acquisitions and Takeovers Act 1975

On 12 February 2010, the Foreign Acquisitions and Takeovers Amendment Act 2010 received Royal Assent.  It clarifies the operation of the Foreign Acquisitions and Takeovers Act 1975 to ensure that it applies equally to all foreign investments irrespective of the way they are structured. The amendments are intended to capture complex investment structures which may provide avenues of control beyond that provided through traditional shares or voting power. The amendments apply retrospectively, from the date of the Treasurer's announcement (12 February 2009).

The Government has also made Regulations to coincide with the amendments. The Regulations will ensure that Australian companies are not inadvertently treated as foreign companies under the Act by virtue of the expanded definition of substantial interest.

Changes to Foreign Investment Policy - Monetary Thresholds

On 22 September 2009, the Government made changes to Australia's foreign investment screening framework.

It replaced the four lowest thresholds for private business investment ($100 million, $110 million, $200 million and $219 million) with a single threshold of 15 per cent in a business worth $219 million. The Government committed to index this threshold annually. As such, it was increased to $231 million on 1 January 2010.

The Government also abolished the requirement that private investors notify proposals to establish a new business in Australia valued above $10 million.

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