November 25, 2015
Australians will have a better oversight of foreign purchases of agricultural land following the passage of legislation in parliament this week which delivered on another key Coalition election commitment.
Minister for Agriculture and Water Resources, Barnaby Joyce, and Member for Gippsland Darren Chester said the legislation formalised the new register of foreign ownership of agricultural land, and lowered the screening thresholds for foreign purchases of agricultural land and agribusiness by private investors from $252 million to $15 million (cumulative) and $55 million respectively.
“While we have always welcome foreign investment in this country, this critical legislation simply allows the government, and the Australian community, to have the proper oversight of foreign purchases of Australian land,” Mr Joyce said.
“This is not about blocking foreign investment, it is about providing a level of oversight and scrutiny that the Australian people demand when we analyse potential foreign investment proposals to ensure they are in the national interest.
“The establishment of a register will give us clear and accurate information on who owns what, and lowering the screening thresholds to $15 million and $55 million will allow the Foreign Investment Review Board (FIRB) more oversight and responsibility in scrutinising foreign purchases.”
Mr Chester said this legislation would provide certainty for the Gippsland community that foreign investment in the region was in the national interest.
“I know people in Gippsland have raised their concerns with me about foreign acquisitions going unchecked and what the implications are,” Mr Chester said.
“Our entire community can be confident that we’ve vastly improved the scrutiny and transparency around foreign investment in our agricultural land as well as in agribusiness.
“It’s important that we note the positive effect foreign investment can have in the community—it not only provides benefits to local farming families but it can also contribute to the prosperity of local businesses, local communities and the broader economy.
“But we must ensure that significant foreign investment in Gippsland has the potential to benefit the local economy, and is in Australia’s best interests.”
The Government has also resolved to introduce a register of foreign ownership of water entitlements, which will give greater clarity on the level of foreign ownership of another of precious natural resources.
Stricter penalties for those foreign investors who breach the rules and application fees to ensure that Australian taxpayers are no longer required to fund the cost of administering the system will apply from 1 December 2015.
Further information on the reforms to strengthen the foreign investment framework is available on the FIRB website.
