FOREIGN ACQUISITIONS AND TAKEOVERS ACT 1975 - NOTES

FOREIGN ACQUISITIONS AND TAKEOVERS ACT 1975 - NOTES

No. 92, 1975

Compilation No. 32

Compilation date: 20 October 2023

Includes amendments up to: Act No. 76, 2023

Registered: 11 November 2023

About this compilation

This compilation

This is a compilation of the Foreign Acquisitions and Takeovers Act 1975 that shows the text of the law as amended and in force on 20  October 2023 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self-repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

Part 1--Preliminary

Division 1--Preliminary

1 Short title

2 Commencement

3 Simplified outline of this Act

Division 2--Definitions

Subdivision A--Dictionary of definitions

4 Dictionary of definitions

Subdivision B--Some defined terms and rules of interpretation

5 Meaning of ordinarily resident

6 Meaning of associate

7 Meaning of independent director

8 Meaning of Australian business

8A Meaning of starts a national security business

8B Meaning of starts an Australian business

9 Meaning of interest in a security

10 Meaning of interest in an asset

11 Meaning of interest in a trust

11A Meaning of interest in an unincorporated limited partnership

12 Meaning of interest in Australian land

13 Interests that are remote or subject to restraint etc.

14 Interests held or acquired jointly

15 Interests acquired by entering agreements or acquiring options

16 Meaning of proposes to take certain action

16A Meaning of interest of a specified percentage in a business

17 Meanings of interest and aggregate interest of a specified percentage in an entity or unincorporated limited partnership

18 Rules relating to determining percentages of interests in entities

18A Increasing percentage of interests without acquiring additional interests in securities

19 Tracing of substantial interests in corporations, trusts and unincorporated limited partnerships

19A Meaning of acquire an interest of a specified percentage in a business

20 Meaning of acquire an interest of a specified percentage in an entity

21 Meanings of subsidiary and holding entity

22 Meanings of voting power and potential voting power

23 Meaning of controls the voting power

24 Meaning of determines the policy of a business of exploiting a mining or production tenement

25 Meaning of enters an agreement

26 Meaning of sensitive business

26A Meaning of registrable water entitlement

27 Regulations to provide in relation to valuing assets

28 Acts done by agents

Division 3--Application of this Act

29 Application of this Act to individuals, entities and unincorporated limited partnerships

30 Extension to external Territories

31 Extraterritoriality

32 Extension to exclusive economic zone and continental shelf

33 This Act binds the Crown

34 Concurrent operation of State and Territory laws

35 General severability

36 Severability relating to Australian businesses

37 Regulations providing for exemptions

Part 2--Actions to which this Act applies

Division 1--Simplified outline of this Part

38 Simplified outline

Division 2--Meaning of significant action

39 Simplified outline of this Division

40 Meaning of significant action--entities

41 Meaning of significant action--businesses

42 Action taken in relation to agribusinesses

43 Meaning of significant action--land

44 Meaning of significant action--actions prescribed by the regulations

45 Actions that are not significant actions--exemption certificates

Division 3--Meaning of notifiable action

46 Simplified outline of this Division

47 Meaning of notifiable action--general

48 Meaning of notifiable action--actions prescribed by the regulations

49 Actions that are not notifiable actions--exemption certificates

Division 4--The threshold test and change in control

Subdivision A--Simplified outline of this Division

50 Simplified outline of this Division

Subdivision B--The threshold test

51 The threshold test for entities and businesses

52 The threshold test for land

53 The threshold test in relation to actions of more than one kind

Subdivision C--Change in control

54 Change in control

Subdivision D--Regulations

55 Regulations

Division 4A--Meaning of notifiable national security action

Subdivision A--Simplified outline

55A Simplified outline

Subdivision B--Meaning of notifiable national security action

55B Meaning of notifiable national security action

Division 4B--Meaning of reviewable national security action

Subdivision A--Simplified outline

55C Simplified outline

Subdivision B--Meaning of reviewable national security action

55D Meaning of reviewable national security action--entities

55E Meaning of reviewable national security action--businesses

55F Meaning of reviewable national security action--land

55G Actions that are not reviewable national security actions--exemption certificates

Division 5--Exemption certificates

56 Simplified outline of this Division

57 Exemption certificates for new dwellings

58 Exemption certificates for foreign persons

59 Exemption certificates for established dwellings

60 Other matters that may be specified by exemption certificates

61 Time limit for making decisions on exemption certificates

61A Treasurer may extend period by up to 90 days

62 Variation or revocation of exemption certificates--general

62A Variation or revocation of exemption certificates--false or misleading information or documents

62B Effect of revocation or variation of exemption certificate

63 Exemption certificates provided for by the regulations

Division 6--Entities whose securities are stapled and entities operating on a unified basis

64 Simplified outline of this Division

65 Entities whose securities are stapled and entities operating on a unified basis

Part 3--Powers of Treasurer

Division 1--Simplified outline of this Part

66 Simplified outline of this Part

Division 1A--Review of reviewable national security actions

66A National security review of actions

Division 2--Orders relating to actions that are, or whose result would be, contrary to national security or the national interest

Subdivision A--Orders

67 Order prohibiting proposed actions

68 Interim orders

69 Disposal orders

70 Limitation on making disposal orders

Subdivision B--No objection notifications

74 No objection notification imposing conditions

75 No objection notification not imposing conditions

76 Content of notification

76A Revocation of no objection notification

Subdivision C--Time limits on making orders and decisions

77 Time limit on making orders and decisions

77A Treasurer may extend decision period by up to 90 days

Subdivision D--Anti-avoidance

78 Anti-avoidance

79 Persons involved in avoidance taken to be associates

Division 3--Last resort powers: orders to deal with national security risks arising after an initial assessment

Subdivision A--National security review required

79A National security review required before orders may be made

79B When an action creates a national security risk

Subdivision B--Orders

79C Considerations required by Treasurer before any order given

79D Order prohibiting proposed actions

79E Disposal orders

Subdivision C--Other powers of Treasurer

79F Considerations required by Treasurer before any power exercised

79G Varying or revoking conditions of no objection notification

79H Notice imposing conditions

79J Variation of notice imposing conditions

Subdivision D--Miscellaneous

79K Exercise of powers under this Division

Division 4--Administrative provisions

Subdivision A--Orders

79L Variation and revocation of orders

79M Registration and commencement of orders

79N Actions of more than one kind

Subdivision B--Variation of notices imposing conditions

79P Variation with consent or without disadvantage

79Q Variation on application

Division 5--Treasurer directions

Subdivision A--Directions to persons

79R Treasurer may give direction to person

79S Publication of directions

79T When direction takes effect

79U Varying and revoking directions

Subdivision B--Interim directions to persons

79V Treasurer may give interim direction to person

79W When interim direction takes effect

79X Expiry of interim direction

79Y Varying and revoking interim directions

Part 4--Notices required for notifiable actions and notifiable national security actions, and may be given of other actions

80 Simplified outline of this Part

81 Compulsory notice of notifiable actions and notifiable national security actions

82 Limitation on taking actions after notice given

Part 5--Offences and civil penalties

Division 1--Simplified outline of this Part

83 Simplified outline of this Part

Division 2--Offences

84 Failing to give notice

85 Taking action before end of period

85A Taking action while prohibited by this Act

86 Contravening orders under Part 3

87 Contravening conditions

88 Failing to advertise new dwellings

88A Contravening directions and interim directions

Division 3--Civil penalties

Subdivision A--Civil penalties relating to actions generally

89 Contravening orders under Part 3

Subdivision B--Civil penalties relating to actions (except in relation to residential land)

90 Application

91 Failing to give notice

92 Taking action before end of period

92A Taking action while prohibited by this Act

93 Contravening conditions

Subdivision C--Civil penalties relating to residential land

94 Acquisition of interests in residential land

95 Acquisition of interests in established dwellings

95A Taking action while prohibited by this Act

96 Contravening conditions in relation to residential land

97 Persons contravening conditions

98 Working out capital gains

Subdivision D--Other civil penalties

98A Contravening directions and interim directions

98B False or misleading information and documents

98C Failure to notify Treasurer of taking of action specified in no objection notification

98D Failure to notify taking of action related to exemption certificate

98E Failure to notify Treasurer of situations following core Part 3 action

Subdivision E--Miscellaneous

98F Civil penalty amounts for penalty provision based on value

Division 4--Miscellaneous

Subdivision A--Application of the Regulatory Powers Act--Civil penalty provisions

99 Civil penalty provisions

Subdivision AA--Application of the Regulatory Powers Act--Infringement notices

100 Infringement notices

101 Meanings of tier 1 infringement notice, tier 2 infringement notice and tier 3 infringement notice

101AA Threshold for distinction between tier 2 infringement notices and tier 3 infringement notices

Subdivision AB--Application of the Regulatory Powers Act--Monitoring powers

101A Monitoring powers

Subdivision AC--Application of the Regulatory Powers Act--Investigation powers

101B Investigation powers

Subdivision AD--Application of the Regulatory Powers Act--Enforceable undertakings

101C Enforceable undertakings

101D Publication of undertakings

Subdivision AE--Application of the Regulatory Powers Act--Miscellaneous

101E Appointment of authorised officers

101F Delegation of certain powers and functions under the Regulatory Powers Act

Subdivision B--Liability of officers of corporations

102 Liability of officers of corporations authorising or permitting contraventions

103 Civil penalties for officers of corporations failing to prevent contraventions

Subdivision C--Recovering unpaid penalties

104 Creation of charge on land

105 Treasurer's declaration relating to charge

106 Effect of charge on land

107 Vesting of interest in land

108 When the Commonwealth can begin dealing with interests in land

109 Disposing of interests in land

110 Exemption from stamp duty and other State or Territory taxes and fees

111 Compensation for acquisition of property

Part 6--Fees in relation to actions

112 Simplified outline of this Part

113 When fees are payable

114 Requirement for fees to be paid before Treasurer exercises powers

115 Waiver and remission of fees

Part 6A--Vacancy fees for foreign acquisitions of residential land

Division 1--Simplified outline of this Part

115A Simplified outline of this Part

Division 2--Vacancy fees: liability

115B Scope of this Division--persons and land

115C Liability for vacancy fees

115D Vacancy fee liability--vacancy fee return

115DA Vacancy fee liability--false or misleading vacancy fee return

115E Vacancy fee liability--notice of liability for vacancy fee

115F Vacancy fee liability--due date

115G Vacancy fee liability--requirement to keep records

115H Vacancy fee liability--waiver and remission

Division 3--Vacancy fees: recovery of unpaid fees

115J Vacancy fee recovery--as a debt

115K Vacancy fee recovery--creation of charge over Australian land

115L Vacancy fee recovery--Treasurer's declaration relating to charge over land

115M Vacancy fee recovery--effect of charge on land

115N Vacancy fee recovery--court order authorising vesting of interest in Commonwealth

115P Vacancy fee recovery--vesting of interest in land

115Q When the Commonwealth can begin dealing with interests in land

115R Vacancy fee recovery--disposing of interests in land

115S Vacancy fee recovery--exemption from stamp duty and other State or Territory taxes and fees

115T Vacancy fee recovery--compensation for acquisition of property

Part 7--Administrative provisions

Division 1--Simplified outline of this Part

116 Simplified outline of this Part

Division 2--Record-keeping

117 What records must be made and kept

118 Making and keeping records

119 Offence for failing to make and keep records

Division 3--Confidentiality of information

120 Meaning of protected information

121 Authorisation of disclosures etc. of protected information for the purposes of this Act

122 Authorisation of disclosures to Commonwealth Ministers and Commonwealth bodies

123 Authorisation of disclosures relating to law enforcement

123A Authorisation of disclosures about decisions where Commonwealth, State or Territory Minister or body etc. provided information

123B Authorisation of disclosures to foreign governments and separate government entities

124 Authorisation of disclosures of non-identifying information

125 Authorisation of disclosures of information in the public domain

126 Authorisation of disclosures where consent or to person who gave information or related entity

126A Authorisation of disclosure by Registrar of information in the Register

127 Authorisation to use information for purposes of proceedings

128 Offence relating to protected information

129 Exception for use of information in good faith

130 No requirement to provide protected information

Division 4--Review of decisions

130A AAT review of decisions

130B Manner of applying for review

130C Notice of application

130D Treasurer to lodge certain material with Tribunal

130E Security Division of the Tribunal to review applications

130F Orders for non-publication and non-disclosure

130G Procedure for review

130H Certain documents and information not to be disclosed in review of reviewable decision

130J Tribunal's decision on review

130K Findings of Tribunal

130L Restriction on Treasurer's powers after review

130M Costs

130N Interaction with the AAT Act

Part 7A--The Register of Foreign Ownership of Australian Assets

Division 1--Simplified outline of this Part

130P Simplified outline of this Part

Division 2--The Register of Foreign Ownership of Australian Assets

130Q Register commencement day

130R Appointment of the Registrar

130S Registrar must keep Register

130T Information to be contained in the Register

130U Registrar may add information to the Register

130V Registrar may disclose information in the Register in certain circumstances

130W Giving notice to Registrar

130X Interests acquired by entering agreements etc.

130Y Agents may give notice

130Z Regulations may extend time for giving notice

Division 3--Requirements to give register notices to the Registrar

Subdivision A--Requirements relating to interests in land

130ZA Foreign person acquires interest in Australian land

130ZB Foreign person acquires interest in exploration tenement

130ZC Person becomes a foreign person while holding interest in land

130ZD Change in nature of interest in land

Subdivision B--Requirements relating to registrable water interests

130ZE Foreign person acquires registrable water interest

130ZF Person becomes a foreign person while holding registrable water interest

130ZG Change to certain characteristics of a registrable water interest

Subdivision C--Requirements relating to interests in businesses or entities

130ZH Foreign person takes action that is a significant action under section 40--entities

130ZI Foreign person takes action that is a significant action under section 41--businesses

130ZJ Foreign person takes action that is a notifiable action under section 47--entities and businesses

130ZK Foreign person takes action that is a notifiable national security action under section 55B

130ZL Foreign person takes action that is a reviewable national security action under section  55D--entities

130ZM Foreign person takes action that is a reviewable national security action under section  55E--businesses

130ZN Change in interest in an entity or business

130ZO Person becomes a foreign person while holding interest in an entity or business

130ZP Person becomes a foreign person while carrying on or holding interest in a national security business

Subdivision D--Requirements relating to registered circumstances

130ZQ Registered circumstance ceases

130ZR Foreign person ceases to be a foreign person while registered circumstances exist

Subdivision E--Requirements relating to persons who die, or corporations that are wound up, before notice is given

130ZS Requirement for executor or administrator to give notice for person who dies before giving notice

130ZT Requirement for corporate liquidator to give notice for corporation that is wound up before giving notice

Subdivision F--Prescribed requirements

130ZU Regulations may require notice to be given to Registrar

Division 4--Consequences of failing to give notice to Registrar

130ZV Civil penalty for failing to give notice to Registrar

Division 5--Miscellaneous

130ZW Directions by Treasurer

130ZX Delegation

130ZY Report to the Parliament

130ZZ Data standards

Part 8--Miscellaneous

131 Simplified outline of this Part

132 Powers of courts

133 Treasurer may require information

134 Validity of acts done in contravention of this Act

135 Manner of notification and application

135A Service of notices and other documents on persons who cannot be found, or who are not in Australia

136 Withdrawal of applications and notices

137 Delegation of powers or functions

138 Powers of Commissioner of Taxation

139 Regulations

Endnotes

Endnote 1--About the endnotes

Endnote 2--Abbreviation key

Endnote 3--Legislation history

Endnote 4--Amendment history

Endnotes

Endnote 1--About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1--About the endnotes

Endnote 2--Abbreviation key

Endnote 3--Legislation history

Endnote 4--Amendment history

Abbreviation key--Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history--Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section  15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and "(md not incorp)" is added to the amendment history.

Endnote 2--Abbreviation key

Endnote 3--Legislation history

Endnote 4--Amendment history