Foreign investment in Australia – recent developments from the Foreign Investment Review Board (FIRB)
The monetary threshold for private businesses that requires the Foreign Investment Review Board’s approval has been increased from $219 million to $231 million, from 1 January 2010.
The Australian Treasurer, the Hon. Wayne Swan, in a recent speech has also clarified the position of the Australian Government and the FIRB. The following themes are very helpful for foreigners who are interested in investing in Australia:
- The Australian Government carefully consider cases where a proposed investor is also a buyer of the resource - in particular, where the proposal involves potential control over pricing and production.
- That foreign investment in a resources company must enable Australia to remain a reliable supplier in the future to all current and potential trading partners.
- That business transparency and shareholder discipline are important in promoting and maintaining sound business practices. Essentially, rhe Australian Government prefers to see major companies maintain their listing on stock exchanges.
Easy to read FIRB guide in Chinese
Early in 2010, the FIRB will release an easy-to-read version of the foreign investment review framework for prospective investors, which will be made available in other languages, including Chinese, Japanese and Bahasa.
How the Deloitte Chinese Services Group help you manage your FIRB obligations
We can help you to manage your FIRB obligations by:
- Reviewing any proposed transaction(s) to determine whether any steps require FIRB approval
- Liaising with you to prepare the approval submission and relevant statutory form (if FIRB approval is required)
- Managing the FIRB approval process on your behalf. Recently, FIRB has requested more background information on transactions than was previously required.
If you need any assistance with managing your FIRB obligations, please contact:
Principal – Stamp Duty, Sydney
Tel: +61 (0)2 9322 7239