FIRB changes

LegalTalk - August 2009

On 4 August 2009, the Australian Treasurer announced a major reform to the Foreign Investment Review Board (FIRB) screening regime. This reform will simplify and change the monetary thresholds that currently apply to screening for private foreign investment.

Currently there are a number of different thresholds that could apply depending upon factors such as what is being acquired, its value and the residence of the investor.

The proposed amendments will:
  • Simplify current multiple monetary thresholds to a single threshold of $219 million. This means that private foreign investment into Australian businesses involving assets of less than $219 million generally will not require Government review
  • Index the new threshold on an annual basis, and
  • Abolish the current $10 million threshold for foreigners (other than US investors) establishing a new business in Australia.
The special threshold for US investors acquiring interests in non-sensitive sectors (currently $953 million) and special screening for investments in media and government sectors will remain.

The Government aims to introduce the amendments into Parliament in September 2009.