Australia Foreign Investment

The Australia Foreign Investment policy is generally favorable for foreign investors as long as it does not interfere with community interests. Australia recognized the great efforts that foreign investors have made to the growth of the country and therefore welcomes Australia foreign investment. The Australia Foreign investment policy takes into consideration how investors have helped and continue to help the growth and development at a pace, which is not achievable by domestic means alone. The Australia foreign investment practices also encourage gateways into new markets; technology advances, and qualified managerial and technical support.

However, equally important is the community issues and concerns which have to be addressed within the Australia Foreign Investment policy. Many Australians are concerned about foreigners owning their assets through foreign direct investment. So the Australia Foreign Investment policy seeks to create a healthy balance between growth potential and the concerns of the people.

According to the Foreign Acquisitions and Takeover Act of 1975, the Australian government can block any foreign purchases of businesses and real estate should these transactions not be deemed in accordance with the Australia Foreign Investment policy standards. There are also thresholds for American investors that cannot be exceeded in terms of investment. However, according to the Australia foreign investment policy and the Foreign Acquisitions and Take over Act of 1989, smaller investment will be exempt from the Australia foreign investment policy scrutiny. Larger investments will be approved providing they are not found to be contrary to public interest and national policy.

During the screening process, the Australia foreign investment review board does allow for comments from various bodies such as government bodies or other interest groups about the foreign investments being in violation of Australia's national policy. Some areas considered extremely sensitive include the media sector. Another area is real estate; the Australian government encourages the building of new residential units to house Australian citizens but will restrict any transaction considered being in excess of what the Australian population actually needs. The Australia Foreign Investment review board will also restrict investors whose interest in Australia's products is over 1 million dollars, in the case of The USA the threshold for Australia foreign investment is 105 million dollars in sensitive sectors and up to 913 million per proposal in others. It is important that investors study the complete Australia Foreign Investment policy not presented in full here; to make sure they are in compliance.