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.

Click here to view table.

Feedback and comments

Long time readers of this newsletter will observe that we have changed to a tabular format. Our clients are increasingly requesting us to adopt this format for advices and other communications. This format is generally considered to be more user friendly and less busy than the narrative format which we have previously used. We welcome your feedback as to whether you find this newsletter more user friendly than previous editions.