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Monetary thresholds

One of the tests in determining whether an action is a significant action under the Foreign Acquisitions and Takeovers Act 2015 is whether the monetary screening threshold test is met.

Monetary screening thresholds are met when either the amount paid for an interest or the value of an entity or asset exceeds the threshold amount, depending on the type of action. The exception is for agricultural land, where the test is cumulative.

Monetary screening thresholds are indexed annually on 1 January using the GDP implicit price deflator (except for the $15 million agricultural land threshold and the $50 million land threshold for Singapore and Thailand investors, which are not indexed).

As the GDP implicit price deflator did not increase this year, the monetary thresholds in the table below will remain in place in 2016.

Non-land proposals
Investor Action Threshold – more than:
From FTA partner countries that have the higher threshold(a) Acquisitions in non-sensitive businesses $1,094 million
Acquisitions in sensitive businesses1 $252 million
Media sector2 $0
Agribusinesses For Chile, New Zealand and United States, $1,094 million.
For China, Japan, and Korea, $55 million (based on the value of the consideration for the acquisition and the total value of other interests held by the foreign person [with associates] in the entity)
Other investors Business acquisitions (all sectors) $252 million
Media sector $0
Agribusinesses $55 million (based on the value of the consideration for the acquisition and the total value of other interests held by the foreign person [with associates] in the entity)
Foreign government investors All direct interests in an Australian entity or Australian business $0
Starting a new Australian business $0
Land proposals
Investor Action Threshold – more than:
All investors Residential land $0
Privately owned investors from FTA partner countries that have the higher threshold(a) Agricultural land For Chile, New Zealand and United States, $1,094 million
For China, Japan, Korea, $15 million (cumulative)
Vacant commercial land $0
Developed commercial land $1,094 million
Mining and production tenements For Chile, New Zealand and United States, $1,094 million
Others, $0
Privately owned investors from non-FTA countries and FTA countries that do not have the higher threshold   Agricultural land For Singapore and Thailand, where land is used wholly and exclusively for a primary production business $50 million (otherwise the land is not agricultural land)
Others $15 million (cumulative)
Vacant commercial land $0
Developed commercial land $252 million
Low threshold land (sensitive land)4, $55 million
 
Mining and production tenements $0
Foreign government investors Any interest in land $0

(a) Agreement country investors are Chilean, Chinese3 , Japanese, New Zealand, South Korean and United States investors, except foreign government investors.


1 Sensitive businesses include media; telecommunications; transport; defence and military related industries and activities; encryption and securities technologies and communications systems; and the extraction of uranium or plutonium; or the operation of nuclear facilities.

2 For investment in the media sector, a holding of at least five per cent requires notification and prior approval regardless of the value of investment.

3 Once the China-Australia Free Trade Agreement enters into force.

4 Low threshold land includes mines and critical infrastructure (for example, an airport or port).