BCA pushes government for foreign investment reform
Make us a preferred source
Make us a preferred source on Google
The news: The Business Council of Australia (BCA) wants the federal government to undertake a broad review of the nation’s foreign investment settings to find ways to bolster overseas interest in Australian business. It has made the recommendation in its pre-budget submission to Treasury.
The numbers: Australia ranks fifth out of 38 countries ranked in the OECD’s Foreign Direct Investment Regulatory Restrictiveness Index. Foreign investment fees in Australia doubled in 2022. Since 2019, Australia has been a net exporter of capital with more funds leaving the country than coming in from foreign investors.
The context: The UK government has undertaken its own review into foreign investment looking at how to attract funds into critical growth sectors. The BCA wants the government to follow in their footsteps as Australia is a net exporter of capital. The big business lobby group sees foreign investment as a potential way to fund projects to drive the energy transition.
The BCA suggests the review could look at barriers to investment, major growth areas and the foreign investment review process and fees. The last review of the Foreign Investment Review Board was undertaken in 2021 but there has not been a recent holistic review.
What they said: “Australia is currently facing an investment drought and if we don’t urgently fix the problem, then what is at stake is Australian jobs and the economic growth which our economy so badly needs,” BCA chief executive Bran Black said.
“We need the right settings to attract investments in key sectors like critical minerals, clean energy and technology, which are linked to the net zero transition.”
The source: BCA pre-budget submission
