Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank Senator Williams for that question and, as Senator Williams knows, I am a very strong supporter of increased levels of foreign investment into Australia. Indeed, the government are a very strong supporter of increased foreign investment into Australia because we understand that increased levels of foreign investment provides additional capital to strengthen economic growth, to create more jobs and to improve consumer choice, and it also promotes healthy competition. Because we understand the importance of foreign investment to the future success of our economy, we also understand that we need to have an appropriately framed regulatory regime in place to manage foreign investment to ensure that people can have confidence that any foreign investment which is contrary to the national interest is not able to proceed. In that context, of course, it is very important to have thresholds to ensure that the appropriate levels of investments have the right levels of scrutiny.

The new measures, which came into effect on Tuesday this week following the passage of the Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015, are the result of extensive consultations across business, industry and the community. They reflect the policies which the coalition took to the last election, and we can be sure that the Australian people can have confidence in the foreign investment framework in place in Australia and that is fit for a 21st century economic environment.

Among the key changes, the new measures better align the foreign investment framework with other corporate legislation. The Australian Taxation Office has been given responsibility for regulating foreign investment in residential real estate. Stricter penalties will make it easier to pursue foreign investors that breach the rules. Application fees will ensure that Australian taxpayers no longer have to fund the cost of administering the system, and there are a range of other measures that were also part of the legislation, which becomes effective this week. (Time expired)