International Law

The Treasurer has announced reforms to Australia's foreign investment rules.

The Government will:

• Replace the four current lowest thresholds for private business investment with 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.

The threshold of $953 million (indexed) for United States investment in non-sensitive sectors will remain.

The Government aims to introduce amending regulation in September 2009.