Australia To Raise The Bar For Foreign Investors

Australia To Raise The Bar For Foreign Investors

According to the findings of a senate inquiry, foreign buyers of Australian agricultural assets would often find themselves involved in a fickle and opaque process with a lack of transparency where buyers have been able to influence the outcome of an application or break the conditions of the FIRB approval due to a lack of adequate penalties.  The senate has made a total of 29 recommendations for tightening the requirements for approval.  Companies may be required to explain how their investment will affect the local community, the environment, jobs, local economies and tax revenues.  The investment threshold may also be lowered from A$248 million to A$15 million.  Companies that receive approval but fail to comply with the conditions may be forced to sell the asset.  All investors will need to prove that the investment is being made on a genuinely commercial basis without distorting the capital markets or trade in agricultural products.

 

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