Major reform of the Foreign Investment Review Framework - Tranche 2
(Foreign Investment Reform (Protecting Australia’s National Security) Regulations 2020 and Foreign Acquisitions and Takeovers Fees Imposition Regulations 2020) - Tranche 2
The submission to the Treasury in response to the 'Tranche 2 Regulations' was prepared by the Foreign Investment Committee of the Business Law Section.
The overwhelming consensus from members of the Foreign Investiment Committee, based on their own views and those of various of their foreign investor clients, is that the Tranche 2 Regulations will give rise to uncertainty and be unreasonably onerous for foreign investors.
As mentioned in our Tranche 1 submissions, we accept the Commonwealth Government’s objectives of addressing national security risks and strengthening compliance. We do not in any way dispute the government's prerogative to reflect its policy priorities in the foreign investment regime and, to be clear, we fully support a foreign investment regime which is designed to and will protect Australia's national interest.
At the same time, however, the foreign investment regime needs to have clear and objective rules and remain workable for the vast majority of foreign investments which do not pose a national security concern. The rules should not impede or create uncertainty for low-risk foreign investment proposals.
You can read the full submission below.