In 2014, the Australian government established the Regulator Performance Framework (the RPF) to encourage Commonwealth regulators to minimise any unnecessary impost associated with administering their regulation. The RPF comprises a set of six common key performance indicators (KPIs) against which to assess Commonwealth regulators’ performance (see Regulator Performance Framework).

This report presents a self-assessment of the administration of Australia’s foreign investment framework (the framework) against the RPF for 2017-18. The framework is underpinned by the Foreign Acquisitions and Takeovers Act 1975 (the Act) and supporting legislation. Administering the framework involves the government reviewing foreign investment applications against the national interest test on a case-by-case basis. Applications are generally approved as the government aims to maximise investment flows, without compromising the national interest. However, when the government reviews a proposal that raises national interest concerns, the Treasurer may take action. For example, the Treasurer may:

• apply conditions to the way a proposal is implemented to ensure it is not contrary to the national interest;
• block any proposal that is contrary to the national interest; or
• require a foreign person to dispose of real estate or share interests, or terminate an arrangement, if an unapproved transaction has already been completed and is contrary to the national interest.

Although responsibility for Australia’s foreign investment policy rests with the Treasurer, several government entities provide advice to inform government decisions under the framework. The Department of the Treasury (Treasury), the Australian Taxation Office (ATO) and the Foreign Investment Review Board (FIRB) have the primary responsibility to examine foreign investment applications and provide advice on associated national interest implications. Treasury and the ATO are collectively referred to in this report as ‘FIRB agencies’.