Treasury [on Wed 25.2.2015] issued for comment an options paper on proposed reforms to strengthen Australia’s foreign investment framework, particularly around residential real estate and agriculture. The proposed reforms include:
- increasing compliance and enforcement activities around foreign investment in residential real estate through the creation of a specialised investigative and enforcement area within the Tax Office; and
- introducing new civil penalties and increased criminal penalties for foreign investors and third parties who breach the foreign investment rules.
Treasury noted that consideration was also being given to the introduction of an application fee on all foreign investment proposals, based on the type of investment. It further noted the Government also intends to introduce a new $55m screening threshold for foreign investment in Australian agribusiness, subject to public consultation on the definition of agribusiness.
COMMENTS due by 20 March 2015.
[LTN 37, 25/2/15]