Labor to increase scrutiny of foreign investments in critical infrastructure, minerals and technology

The news: The federal government will make changes to the way it reviews foreign investment proposals, Treasurer Jim Chalmers will announce in a speech on Wednesday.

The context: The changes will include dedicating more resources to scrutinising foreign investment in critical infrastructure, minerals and technology, as well as those that involve sensitive data sets and investments near defence sites, as part of its overhaul of the foreign investment framework.

According to a draft of his speech to the Lowy Institute, Chalmers will say the overhaul is aimed at making the framework “work better for investors, our economy, and our national interest”.

The changes include:

• More robust, efficient and effective arrangements to scrutinise complicated or higher risk proposals;
• More resources to screening foreign investment in critical infrastructure, critical minerals and critical technology, those that involve sensitive data sets, and investments in close proximity to defence sites;
• Bolstering the foreign investment compliance team; Updating guidance about tax arrangements for foreign investors;
• Ensuring foreign investment settings could better deal with emerging risks that were aligned with other regulatory frameworks;
• Streamlining the processing regime for faster approvals for known investors making investments in non-sensitive sectors;
• Adopting a processing target to process 50% of cases within 30 days;
• Facilitating foreign investment through incentives, exemptions, build to rent properties, and removing unnecessary regulations; and
• Improving transparency through up updated foreign investment policy document and publishing public guidance.