Chalmers tells FIRB to resolve all low-risk investments in 30 days
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The news: Treasurer Jim Chalmers has announced the Foreign Investment Review Board will be expected to decide on low-risk investments within 30 days from the start of 2027.
Amendments to foreign investment laws will also be made to ensure the “regime is stronger where risks are high and faster where risks are low”.
The context: Speaking to the Bloomberg Forum for Investment Managers on Tuesday, Chalmers said he thinks the “second tranche” of foreign investment reforms will “make a difference when it comes to making our economy more productive”.
This includes the new 30-day clearance performance target for low-risk investments, moving from the current expectation that a decision be made on 50% of low-risk investments within that time period.
Other reforms include plans to remove “ineffective conditions on existing foreign investment approvals” and streamlining the register of foreign ownership of Australian assets.
Amendments to foreign investment laws will include:
- Expanding exemption certificates to reduce regulatory burden on low-risk investments by frequent low risk investors.
- Eliminating approval requirements for some low-risk transactions.
- More agile compliance and enforcement powers to better respond to non-compliance and avoidance.
- Targeted narrow increases to screening requirements to better protect our most sensitive sectors and businesses.
A first set of reforms to Australia’s foreign investment regime, including a new portal for lodging applications, was announced in May 2024.
What they said: “Some of you will have followed the first tranche of reforms that we did to FERP, which is meaningfully improving the system, but speaking with a lot of investors, we know that there’s more work to do,” Chalmers said.
“And in the budget, there’s a second tranche of foreign investment reforms, which we think will make a difference when it comes to making our economy more productive.”
The sources: Jim Chalmers speech, Jim Chalmers media release
