Less red tape and compliance costs for Investors

5 August 2009

The Australian Government has announced measures to streamline Australia’s foreign investment regime which will cut red tape and compliance costs and improve Australia’s competitiveness as a place to invest.

In order to make it easier for overseas investors to set up business in Australia, the Government will:

• Replace the four lowest thresholds for private business investment with the highest of these – a single threshold of 15 per cent in a business worth $219 million. This means private foreign investment in Australian businesses below $219 million can proceed without review. 
• Index the new unified threshold on 1 January every year to keep pace with inflation and to prevent foreign investment screening from becoming more restrictive over time.
• Abolish the existing requirement that private investors notify the Government when establishing a new business in Australia valued above $10 million.

Based on 2008-09 figures, around 20 per cent of all business applications will no longer be screened by the Foreign Investment Review Board.

The Government aims to introduce amending regulation in September 2009.