New Australian foreign investment legislation came into effect on 1 December 2015, which is intended to strengthen Australia’s foreign investment framework.
One of the most significant aspects of the recent changes is the introduction of up-front fees that must be paid before the statutory review time period commences. The fees will be used to cover administration and compliance costs.
The amount of the fee depends on the type and value of the transaction and details of the most common fees for commercial transactions are set out below.
Other points to note:
- It is expected that foreign buyers will be less likely to file applications prior to entering into a binding agreement particularly bidders in a competitive auction process. This may have timing implications for closing the transaction
- Where a transaction involves multiple actions that are subject to separate fees, the highest single fee will apply
- Fees are generally not refundable if the transaction does not proceed or approval is not granted
- If the fees payable constitute more than 25% of the transaction value, a de minimis fee of A$1,000 will be payable
Click here to view the table.