National Security

• Foreign investment is important for Australia’s long term economic success, stability and prosperity.
• However, risks to Australia’s national interest, particularly national security, have increased as a result of developments including rapid technological change and changes in the international security environment.
• The national security test provides the Treasurer with the ability to address new and emerging national security risks from foreign investment. The national security test:
  • requires mandatory notification of proposed investments in national security land, interests in exploration tenements over national security land, a proposed direct investment in a national security business or starting a new national security business;
  • allows investments that are not notified to be ‘called-in’ for review on national security grounds;
  • allows investors who choose to voluntarily notify to receive certainty from being subject to ‘call-in’; and
  • provides a last resort power, which, in exceptional circumstances, permits the Treasurer to impose conditions, vary existing conditions, or, as a last resort, require the divestment of any approved investment where national security risks emerge. This power is subject to a number of safeguards.

Guidance notes