Australian PM Tony Abbott said the Government was putting in place better scrutiny foreign purchases of agricultural land. Photo / AP
Australian PM Tony Abbott said the Government was putting in place better scrutiny foreign purchases of agricultural land. Photo / AP
Australia has tightened the rules on foreign purchases of agricultural land and has reduced the ownership screening threshold to A$15 million from A$252 million, from March 1.
Prime Minister Tony Abbott and Agriculture Minister Barnaby Joyce said the Government was putting in place better scrutiny and reporting of foreign purchasesof agricultural land.
"The Government will continue to welcome foreign investment, but the community must have confidence that this investment is coming in on our terms and for our nation's benefit," the ministers said in a statement.
The A$15 million ($15.6 million) screening threshold will apply to the cumulative value of agricultural land owned by the foreign investor, including the purposed purchase.
The Australian Government will also establish a foreign ownership register of agricultural land to strengthen reporting requirements and provide a clear picture of foreign investment in the agricultural sector.
From July 1, the Australian Tax Office will start collecting information on all new foreign investment in agricultural land regardless of value.
The office will also start a stocktake of existing agricultural land ownership by foreign interests.
"These measures are a significant step in protecting Australia's national interests and in giving the community greater confidence in our foreign investment regime."
In New Zealand, the Overseas Investment Office (OIO) assesses applications from overseas investors seeking to invest in sensitive New Zealand assets - being "sensitive" land or high value businesses worth more than $100 million.
To be successful, the proposed investment must meet criteria set out in the Overseas Investment Act.
