The Government is seeking stakeholder views on the exposure draft of the Foreign Investment Reform (Protecting Australia’s National Security) Bill 2020.
The exposure draft Bill gives effect to the major reforms to the Foreign Acquisitions and Takeovers Act 1975 announced on 5 June 2020. The reforms update Australia’s foreign investment review framework in three broad ways: addressing national security risks, strengthening compliance and streamlining investment in non-sensitive businesses.
The exposure draft Regulation will be released in two parts. The consultation schedule for each measure is set out in the Implementation Roadmap.
Implementation Roadmap - PDF 1MB
Implementation Roadmap - DOCX 76KB
Exposure Draft Legislation
The exposure draft Bill includes provisions for the new national security powers – including the call in and the national security last resort power – integrity and technical amendments, and provisions to improve compliance and enforcement. The Government is committed to extensive public consultation to inform the final design of the Bill before its introduction to Parliament in the spring sitting.
Further details are contained in the Explanatory Memorandum.
Exposure Draft Bill (Technical amendments) - PDF 352KB
Exposure Draft Bill (Technical amendments) - DOCX 52KB
Exposure Draft Bill (Fees Imposition Bill) - PDF 441KB
Exposure Draft Bill (Fees Imposition Bill) - DOCX 121KB
Exposure Draft Bill (Integrity Amendments) - PDF 531KB
Exposure Draft Bill (Integrity Amendments) - DOCX 57KB
Explanatory Memorandum - PDF 1.11MB
Explanatory Memorandum - DOCX 163KB
Exposure Draft Regulation (Definition of National Security Business)
The first part of the draft amendments to the Foreign Acquisitions and Takeovers Regulation 2015 provides the details of the definition of national security business. The remainder of the exposure draft Regulation, including the time limit for the call in power, streamlining measures (including investor exemption certificates) and other technical amendments, will be released separately in September for consultation.
Further details are contained in the Explanatory Memorandum (Chapter 1).
Explanatory Memorandum (Chapter 1) - PDF 422KB
Explanatory Memorandum (Chapter 1) - DOCX 79KB
We are calling for interested stakeholders to submit views and feedback to FIRBStakeholders@treasury.gov.au before 5:00pm on 31 August 2020.
Treasury will host online public information sessions, and we welcome stakeholders to register your interest to attend a session.
|Wednesday 26 August 2020||11.00am-12.00pm||Foreign Investment Reforms - Information Session #1||Register Now|
|Thursday 27 August 2020||10.00am-11.00am||Foreign Investment Reforms - Information Session #2||Register Now|
Proposed reforms to the Security of Critical Infrastructure Act 2018
On 12 August 2020, the Department of Home Affairs released a consultation paper on protecting critical infrastructure and systems of national significance. The paper proposes an enhanced regulatory framework by amending the Security of Critical Infrastructure Act 2018 (the SOCI Act).
The proposed reforms to the SOCI Act may affect aspects of the reforms to the foreign investment review framework. In particular, the definition of national security business as proposed in the foreign investment exposure draft regulation includes entities regulated under the SOCI Act.
Therefore, stakeholders with an interest in the foreign investment reforms may also wish to engage with the Department of Home Affairs’ consultation process.