Govt scrutiny increases on foreign agribusiness buyers

THE FEDERAL Government has stepped up its scrutiny and reporting of foreign purchases of agricultural land.

In a statement last month, Prime Minister Tony Abbott said the government would continue to welcome foreign investment, “but the community must have confidence that this investment is coming in on our terms and for our nation’s benefit”. 

The government reduced the screening threshold from $252 million to $15 million from March 1 this year. The new $15 million screening threshold applies to the cumulative value of agricultural land owned by the foreign investor, including the purposed purchase.

The Federal Government will also establish a foreign ownership register of agricultural land to strengthen reporting requirements and provide a clear picture of foreign investment in Australia’s agricultural sector, Mr Abbott said.

From July 1 this year, the Australian Taxation Office (ATO) will start collecting information on all new foreign investment in agricultural land regardless of value. The ATO will also commence a stocktake of existing agricultural land ownership by foreign interests.

“The government will continue to work with state and territory governments so that the ATO register will use land title transfer information,” Mr Abbott said. “These measures are a significant step in protecting Australia’s national interests and in giving the community greater confidence in our foreign investment regime.”

www.firb.gov.au

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