John Cobb (Calare, National Party) Share this | Hansard source

I listened to what the opposition spokesperson had to say about the Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015, which we are debating together with the Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 and the Register of Foreign Ownership of Agricultural Land Bill 2015. I make this comment: nobody is more supportive of foreign investment than we are or I am. We just want to make sure we know where it is, who is doing it and that it is in Australia's interest.

Whatever may have been the case in the past, we are dealing with the present and the future. I think the free trade bills we have already put through, plus the one Labor are currently trying to destroy for reasons best known to themselves, put the lie, if I may put it that way, to a lot of what he said. We are of course very much committed to working at a global level with countries like China. We are encouraging them to invest and to create work and jobs in Australia.

This legislation ensures a welcoming environment for foreign investment but includes safeguards to enable us to detect investment that is contrary to our national interest. It will provide a transparent process and ensure more scrutiny of foreign ownership. The reforms include a more simplified, modern framework better targeted at meeting community expectations.    It will introduce stricter penalties for foreign investors breaking the rules—and every country is different in this regard. The bill ensures Australian taxpayers will no longer fund the cost of the administration system for foreign investors—and that administration is no light task, no light task at all. This package will see a system that is open for foreign investment that will strengthen our nation's economy while ensuring we make strategic decisions for our country's future.

The Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015 marks the biggest overhaul of the legislation in four decades. It will bring about stricter criminal and civil penalties to ensure investors and intermediaries do not profit from breaking the rules. Existing criminal penalties will be increased from $90,000 to $135,000 for individuals. Divestment orders will also be supplemented by civil pecuniary penalties and infringement notices for less serious breaches of residential estate rules. The Australian Taxation Office will take over the responsibility for regulating foreign investment in residential real estate. Third parties who assist foreign investors in breaking the rules will also now be subject to penalties. There will be stronger enforcement and auditing of existing rules to ensure better compliance.    It is important those breaking the rules face ramifications and this bill will ensure a better system is in place to detect breaches.

The bill will also enable the lowering of screening thresholds for investments in Australian agriculture to ensure significant investments in this sector are overseen. Note that I said 'screening thresholds'—not 'stopping'. This is not about stopping investment; it is about knowing who is doing it.

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