Friday, July 24, 2009

Foreign Investors in Australia

Foreign investors in Australia increasing, especially after the regulations that make actors comfortable foreign investors it expected to make a trade in the fiscal Australia forward in the next few years.

Coming foreign investors, who infuse capital in Australia will compete with employers in the country, through the transaction data in foreign trade continues to increase, according to the circumstances of the situation began to improve global.

Foreign investors in Australia should be aware of recent regulations which have raised the examimation thresholds under the country's Foreign Acquisitions and Takeovers Act 1975 (FATA).

The FATA gives the treasurer, acting on the advice of the Foreign Investment Review Board, broad powers to block the foreign acquisition of Australia companies, business and urban land on 'national interest' grounds. The examination thresholds determine whether a foreign investment proposal is subject to screening.

The treasurer's powers to block foreign acqusitions on the basis of national interest now apply only where the target company's gross assets exceed A$100 million (up from A$50 million).

Monetari thresholds for the examination of upstream acquisitions of foreign holding companies have also been raised.

The Treasurer's powers will now apply only where, among other thins, the value of interests in Australian urband land (including mineral rights) owned by the foreign target, or the gross value of the assets of its Australia subsidiaries, exceed A$200 million (previously A$50 million).

Notification requirements for certain transaction have also been relaxed in line with the increased thresholds but the higher A$831 million monetary thresholds that applies to US investors in certain non-sensitive sectors in unchanged.

While the increased monetary thresholds will help reduce the regulary requirements for certain offshore takeovers and restructurings involving Australian assets, the provisions of the FATA remain complex. Foreign investors should always seek advice prior to any direct or indirect acquisition of Australian assets.

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