Foreign investment is very important to the Australian economy. The Australian Government regulates the investment by foreigners through its foreign investment policy.
The government’s approach is to encourage foreign investment consistent with community interest. The Foreign Investment Policy provides for government scrutiny of many proposed foreign purchasers of Australian property.
The government has the power to block proposals that are required to be notified and which are determined to be contrary to the National interest.
The Foreign Investment Review Board (FIRB) is a Federal Government body which examines proposals by foreign people to undertake direct investment in Australia. It also makes recommendations to the government under the Foreign Investment Policy. It is unlawful for a foreign person to invest in Australia without first obtaining foreign investment review board approval, unless the purchase is exempt.
The Foreign Investment Policy defines who is required to apply for approval. This may include natural persons (individuals) and foreign companies. Different types of investments also require approval whilst some types of investments are exempt.
It is very important to obtain expert legal advice before entering into a transaction to purchase property if you are foreign person or entity.
Contact our team today to discuss your investment legal matters or if you would like to discuss your options with purchasing residential and/or commercial property.