FOREIGN ACQUISITIONS AND TAKEOVERS REGULATIONS (AMENDMENT) 1994 NO. 295

FOREIGN ACQUISITIONS AND TAKEOVERS REGULATIONS (AMENDMENT) 1994 NO. 295

STATUTORY RULES 1994 No. 295

ISSUED BY THE AUTHORITY OF THE ASSISTANT TREASURER

Foreign Acquisitions and Takeovers Act 1975

Foreign Acquisitions and Takeovers Regulations (Amendment)

Section 39 of the Foreign Acquisitions and Takeovers Act 1975 (the Act) provides for the GovernorGeneral to make regulations prescribing all matters required or permitted by the Act to be prescribed or necessary or convenient to be, prescribed for carrying out or giving effect to the Act. Subsection 12A(8) provides for regulations to be made removing specified categories or urban land acquisition from notification or examination under the Act.

Amendments to the Migration Act 1958, which commenced operation on 1 September 1994, vary the entitlement to permanent residency and provide for a new category of persons who are entitled to enter Australia on an openended visa, namely the holders of "special category visas".

The new regulation 3(9) of the Foreign Acquisitions and Takeovers Regulations is consistent with the Australian Government's foreign investment policy and exempts persons who hold permanent visas or can come to Australia and remain on the new open-ended special category visa from the need to seek foreign investment approval to acquire residential real estate.

Although "special category visas" will only be issued to New Zealand citizens, it is the open-ended nature of the visa that is the basis for the exemption. Potentially, other nationalities who also are entitled to a visa with the characteristics that its duration was open-ended, while some external condition such as citizenship was satisfied, would also conform with foreign investment policy for the acquisition of residential real estate.