Migration Giants

Impact Of Changes To The Foreign Investment Framework On The Business Innovation And Investment Program (Aug 18th, 2020)

 

On 29 March, the Treasury announcedexternal link changes to Foreign Investment Review Board (FIRB) measures reducing the scrutiny level from $250 million to $0. By temporarily reducing the foreign investment thresholds, the Australian Government is ensuring appropriate oversight over all proposed foreign investment during this time, to protect Australia’s national interest during the economic impact arising from the spread of COVID-19.

To ensure sufficient time for screening applications, the FIRB will be working with existing and new applicants to extend timeframes for reviewing applications from 30 days to up to six months.

Treasury has advised that this is not an investment freeze. Australia is open for business and recognises investment at this time can be beneficial if in the national interest.

Business Innovation and Investment Program (BIIP) applicants have always been subject to FIRB regulations though the vast majority of business purchases and investments were below scrutiny thresholds.

Investors:

Business Owners:

Entrepreneurs:

Treasury advice is that the purchase of a business would be subject to FIRB approval. There are also other business activities that may be affected by the changes to the FIRB thresholds, including, but not limited to, commercial leases or property purchases.

Further Information: