March 31, 2023
Australia proposes to impose additional registration requirements under the Foreign Investment Review Board Regulations
On 2 March 2023, the Australian Treasury released exposure draft legislation, Treasury Laws Amendment (Measures for Future Investments) Instrument 2023: Register of Foreign Ownership of Australian Assets which, if passed, will require foreign persons to register certain actions under Australia's foreign investment regime on a Register of Foreign Ownership of Australia Assets (Register).
Under the current Register, foreign investors are required to register interests in:
The amendments to the Foreign Acquisitions and Takeovers Regulation 2015 (FIRB Regulations) will:
Under the new changes that take effect on 1 July 2023, foreign persons will be required to notify the Registrar of interests acquired, held, or disposed of including:
Generally, a notice to the Registrar will be required to be made within 30 days of the foreign person taking the action. The Register will be maintained by the Australian Taxation Office. Foreign persons will be required to notify online through Online services for foreign investors.
The exposure draft of the amendments is available for review here. Consultation will close on 31 March 2023.
For additional information with respect to this Alert, please contact the following:
Ernst & Young (Australia), Corporate Law, Sydney
Ernst & Young LLP (United States), Australia Tax Desk, New York