BlackRock urges overhaul of Australia’s foreign investment regime
In a pre-budget submission, the investment manager called for reforms to foreign investment rules, warning that regulatory hurdles deter global capital.
The world’s largest investment manager has urged the federal government to reform Australia’s foreign investment regime to attract greater interest from global investors.
In a pre-budget submission to Treasury, BlackRock encouraged the Albanese government to introduce significant changes to boost foreign investment in infrastructure and other critical developments. The firm also raised concerns about inconsistencies in the foreign investment watchdog’s approach to approvals.
Until recently, media and political observers had not expected a federal budget on 25 March, assuming an election would be called instead. However, with the election now delayed following Cyclone Alfred, the budget is set for release in a fortnight — bringing increased scrutiny on how the government will respond to business demands and respond to political rivals’ promises.
Last week, the Coalition announced that, if elected, it would create a taskforce to develop an FIRB whitelist process for trusted investors, aimed at reducing red tape. The list would apply to investors from Five Eyes alliance countries — Canada, New Zealand, the UK and the US — as well as the Quadrilateral Security Dialogue nations, adding India and Japan.
