Under Australian Commonwealth Law (the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA)) a "Foreign Person" (explained below) is required to make a formal written application to the Foreign Investment Review Board (FIRB) prior to obtaining an interest in "Australian urban land" (also explained below). If a person proposes to manage or franchise a hotel located in Australia and is a Foreign Person then it should consider whether it is required to make a formal written application to FIRB as a pre-condition to the relevant agreement (the Agreement) becoming effective.
The purpose of this update is to explain how the FATA operates concerning the Agreements, including how to apply, how long it takes and the potential consequences if a FIRB application is not made correctly.
The contentions of this update constitute general information only. Prior to any application being made to FIRB, you should seek specific legal advice.
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