Application fees set out in the Foreign Acquisitions and Takeovers Fees Imposition Regulations 2020 (Cth) are doubled as a result. The maximum application fee cap will increase from A$522,500 to A$1,045,000 for proposed acquisitions of residential land above A$40 million, agricultural land above $80 million and commercial land, mining tenements and businesses (other than land entities) above $2 billion. The entire schedule of application fees is set out in the revised FIRB Guidance Note 10 Fees. The fees will also continue to be indexed annually.
The new fee thresholds and several FIRB Guidance Notes have been updated in Update 2 for 2022 of Thomson Reuters’ Foreign Investment in Australia, to be published in August 2022, in the Property Law Practice Area. New Developments and Chapter 6 (Practical considerations for lawyers) have also been revised by Andrew Wong of Allens.
In announcing the fee increases as part of the government’s budget repair plan, the Federal Treasurer, Dr Jim Chalmers MP commented that “foreign investment application fees ensure the cost of administering the foreign investment framework is not borne by Australians, and penalties encourage compliance with our rules”.
Corresponding increases to penalties are yet to be legislated.