Australia’s Foreign Investment Framework (the framework) encompasses the Foreign Acquisitions and Takeovers Act 1975 (the Act) and supporting legislation and regulations. Under these, foreign investment applications are assessed on a case-by-case basis according to whether or not they are contrary to the national interest. The Foreign Investment Division in the Department of the Treasury (the Treasury) is responsible for the day-to-day administration of the framework in relation to business, agricultural land and sensitive or complex commercial real estate investments and undertaking compliance activities in relation to these matters. It is also responsible for providing advice on Australia’s foreign investment policy and progressing legislative changes.

The Foreign Investment Review Board (FIRB) is a non-statutory advisory body which:

• examines proposed investments that are subject to the Act and makes recommendations to the Treasurer and other Treasury portfolio ministers on the national interest implications;
• provides advice on the operation of the framework and related matters;
• fosters awareness and understanding, both in Australia and abroad, of Australia’s foreign investment policy;
• provides guidance to foreign persons and their representatives or agents on the operation of the framework; and
• monitors compliance with the framework

The overall assessment in this report is that the KPIs were met during 2019-20. Further to this assessment stakeholders have proposed improvements to the administration of the framework, related to both the pre and post ZDT environment, which require a continued focus in the next reporting period. These matters are raised in the body of this report and include:

• continued efforts to improve application processing times;
• working with regulators to streamline requests made on investors;
• continuing to build understanding of commercial practices and legislative requirements, and ensuring that guidance is available to promote consistency of approach in administering the Act;
• improving internal processes to facilitate handover of matters between action officers and effective record keeping;
• building the utility of assistance provided through the FIRB enquiry line and email; and
• further standardising the process for applying conditions and monitoring condition outcomes.