{"id":"C2015A00152","name":"Foreign Acquisitions and Takeovers Fees Imposition Act 2015","slug":"foreign-acquisitions-and-takeovers-fees-imposition-act-2015","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"152 of 2015","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":54959,"registerId":"commonwealth-C2015A00152-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n This Act may be cited as the Foreign Acquisitions and Takeovers Fees Imposition Act 2015.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. Sections 1 to 4 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

25 November 2015

2. Sections 5 to 13

The later of:

(a) the start of the day after this Act receives the Royal Assent; and

(b) the commencement of Schedule 1 to the Foreign Acquisitions and Takeovers Legislation Amendment Act 2015.

However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur.

1 December 2015

(paragraph (b) applies)

\n```\n\n> Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.\n\n (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Extension to external Territories","content":"#### 3 Extension to external Territories\n\n This Act extends to every external Territory.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\n (1) In this Act:\n\n> Foreign Acquisitions Act means the Foreign Acquisitions and Takeovers Act 1975.\n\n> Foreign Acquisitions Regulation means the Foreign Acquisitions and Takeovers Regulation 2015.\n\n> indexation factor has the meaning given by section 8.\n\n> index number has the meaning given by section 9.\n\n> quarter means a period of 3 months ending on 31 March, 30 June, 30 September or 31 December.\n\n> this Act includes the regulations.\n\n (2) Subject to subsection (1), an expression used in this Act that is defined in the Foreign Acquisitions Act or regulations made for the purposes of that Act has the same meaning in this Act as it has in that Act or those regulations.","sortOrder":4},{"sectionNumber":"Part 2","sectionType":"part","heading":"Imposition and amounts of fees","content":"## Part 2—Imposition and amounts of fees","sortOrder":5},{"sectionNumber":"5","sectionType":"section","heading":"Imposition of fees","content":"#### 5 Imposition of fees\n\n A fee payable under:\n (a) Part 6 (fees in relation to actions); or\n (b) Part 6A (vacancy fees for foreign acquisitions of residential land);\n of the Foreign Acquisitions Act is imposed as a tax by this section.","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Amounts of fees","content":"#### 6 Amounts of fees\n\n (1) The amount of a fee imposed by section 5 is the amount worked out in accordance with regulations made for the purposes of this subsection.\n (2) Without limiting subsection (1), the regulations may do one or more of the following:\n (a) specify an amount or a method for determining an amount;\n (b) specify different amounts or methods for:\n (i) different kinds of fees; or\n (ii) different kinds of persons liable to pay a kind of fee; or\n (iii) different kinds of circumstances giving rise to the liability to pay a kind of fee;\n (c) specify a nil amount, or a method resulting in a nil amount;\n (d) specify a method for a kind of fee when such a fee is one of 2 or more fees payable in relation to a single agreement;\n (e) specify a method for a kind of fee payable in relation to an action if that action is covered by more than one provision of the Foreign Acquisitions Act or Foreign Acquisitions Regulation (because the action is an action of more than one kind);\n (f) specify a method for a kind of fee that:\n (i) initially determines an amount; and\n (ii) later determines a lower replacement amount (including a nil amount) if specified circumstances arise after the fee becomes payable.\n Paragraphs (c) to (f) do not limit paragraph (b).\n\n> Note: A method for determining an amount could, for example, include:\n\n (a) indexation; or\n (b) providing for a lower amount if certain circumstances exist; or\n (c) reducing the amount to nil if another person who is jointly and severally liable for the fee pays the fee.\n Cap on the amount of a fee\n (3) The amount of a fee imposed by section 5 must not exceed $7,000,000.","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Indexation of fee cap","content":"#### 7 Indexation of fee cap\n\n (1) The amount referred to in subsection 6(3) is to be indexed on the first day of each financial year starting on or after 1 July 2024. The amount is indexed by multiplying it by its indexation factor.\n (2) If after indexation the amount is not a multiple of $100, round down the indexed amount to the nearest multiple of $100.\n (3) If the indexed amount worked out under subsection (1) for a financial year (the current year) (after any rounding under subsection (2)) is less than the indexed amount for the previous financial year, the indexed amount for the current year is the indexed amount for the previous financial year.","sortOrder":8},{"sectionNumber":"8","sectionType":"section","heading":"Indexation factor","content":"#### 8 Indexation factor\n\n (1) The indexation factor is:\n ![Start formula Start fraction Sum of the index numbers for the 4 quarters in the year ending on 31 March just before the start of the relevant financial year over Sum of the index numbers for the 4 quarters in the year ending on 31 March in the financial year before the financial year in which this subsection commences End fraction End formula ](image.002.png)\n (2) Work out the indexation factor to 3 decimal places (rounding up if the fourth decimal place is 5 or more).\n\n> Note: Example: If the factor is 1.102795, it would be rounded up to 1.103.","sortOrder":9},{"sectionNumber":"9","sectionType":"section","heading":"Index number","content":"#### 9 Index number\n\n The index number for a quarter is the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) first published by the Australian Statistician for the quarter.","sortOrder":10},{"sectionNumber":"Part 3","sectionType":"part","heading":"Regulations","content":"## Part 3—Regulations","sortOrder":11},{"sectionNumber":"13","sectionType":"section","heading":"Regulations","content":"#### 13 Regulations\n\n The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed by the regulations; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.","sortOrder":12}],"analysis":{"issue_detection":{"absurdities":[],"contradictions":[]},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"The Act does not alter which transactions or persons are within the Foreign Acquisitions regime. Instead it reclassifies the fees under Parts 6 and 6A as a tax and establishes how amounts are to be set and capped—delegating detailed mechanics to regulation and specifying indexation of the cap (s5; s6; s7–9; s4(2); s13)."},"complexity_factors":["Broad delegation to regulations to determine fee amounts and methods, including nil amounts and varied methods for different persons or circumstances (s6; s13).","High-value cap plus multi-step indexation rules tied to quarterly All Groups CPI with rounding and a non-decreasing floor (s6(3); s7; s8; s9).","Cross-references to the Foreign Acquisitions and Takeovers Act and its regulations for definitions and substantive fee triggers, creating dependency on external instruments (s4(1)–(2); s5).","Provisions allowing multiple fees for a single agreement and methods to allocate or replace fees after they become payable, increasing administrative and calculation complexity (s6(2)(d)–(f)).","Conditional and staged commencement rules that may affect when particular provisions operate (s2).","Extension to external Territories may broaden geographic scope of application and compliance obligations (s3)."],"plain_english_summary":"This Act declares the fees charged under Parts 6 and 6A of the Foreign Acquisitions and Takeovers Act 1975 to be a tax (s5), requires regulations to set how much those fees are (subject to a $7,000,000 cap) and prescribes indexation of that cap to the CPI (s6–9). It applies to the persons who are liable under those Parts (definitions are imported from the Foreign Acquisitions Act) and gives the Governor‑General power to make the detailed rules about amounts, methods and exemptions (s4(2), s6, s13)."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The legislation appears consistent with its original purpose as a fee imposition mechanism. It has not expanded beyond its core function of establishing the constitutional and statutory basis for charging fees related to foreign investment screening and vacancy fees. The structure remains tightly focused on the fiscal mechanism rather than substantive foreign investment policy."},"complexity_factors":["Heavy reliance on delegated legislation: actual fee amounts are not in the Act but left to regulations (section 6)","Cross-referencing to primary legislation (Foreign Acquisitions and Takeovers Act 1975) for definitions and substantive triggers (sections 4, 5)","Mathematical indexation formula with CPI calculations requiring quarterly data and rounding rules (sections 7-9)","Conditional commencement provisions with dependencies on another Act (section 2)","Multiple nested subsections in section 6 allowing for complex fee determination methods including nil amounts, replacement amounts, and joint liability scenarios"],"plain_english_summary":"This law sets up a system for charging fees to foreign investors who want to buy Australian assets or property.\n\n**What it does:**\n- **Imposes fees as taxes** on foreign persons and companies when they apply to buy Australian land, businesses, or other assets that require government approval under the Foreign Acquisitions and Takeovers Act 1975.\n- **Covers two main types of fees:**\n - **Application fees** for getting approval to make investments (Part 6 of the main Act)\n - **Vacancy fees** charged to foreign owners of residential property who leave their properties empty (Part 6A of the main Act)\n\n**How fees are calculated:**\n- The actual dollar amounts aren't written directly in this law. Instead, the law gives the government power to make **regulations** (subordinate laws) that set specific fee amounts or formulas.\n- The regulations can set different fees for different situations—for example, higher fees for more expensive properties, or different rates for different types of investors.\n- **Maximum cap:** No single fee can exceed $7 million (with this cap increasing each year from July 2024 based on inflation/CPI).\n\n**Who it affects:**\n- Foreign investors seeking Australian government approval for acquisitions\n- Foreign owners of Australian residential property who may face vacancy fees\n\n**Why it matters:**\nThis is a **revenue-raising law**. It ensures foreign investors contribute to the cost of screening their applications and penalises foreign owners who leave residential properties vacant (to encourage housing availability). The fee structure helps fund the foreign investment review system while deterring speculative property purchases."},"summary":{"complexity_score":4,"scope_assessment":{"changed":true,"description":"The original Act imposed fees only in relation to applications and actions under Part 6 of the Foreign Acquisitions Act. The addition of Part 6A vacancy fees (fees charged to foreign owners who leave residential property vacant or underoccupied) represents a meaningful expansion of scope beyond the initial transactional-fee-only framework, extending the fee regime to ongoing compliance obligations post-acquisition."},"complexity_factors":["Act is a short enabling/imposition instrument but relies heavily on external legislation (Foreign Acquisitions and Takeovers Act 1975) and regulations for substantive content, requiring cross-referencing to understand the full picture","Indexation mechanism (sections 7–9) involves a mathematical formula using CPI quarterly averages, which may be opaque to non-specialists","Fee amounts are entirely delegated to subordinate regulations, meaning the Act itself reveals little about actual costs — users must consult separate instruments","Constitutional distinction between a 'fee' and a 'tax' underpins the Act's structure but is not explained within the Act itself","Multiple fee categories (application fees, vacancy fees) with different rules referenced but not fully detailed within this Act"],"plain_english_summary":"This Act authorises the Commonwealth to charge fees when foreign persons seek approval to acquire Australian assets — businesses, shares, residential property, agricultural land and other sensitive assets — and also authorises annual vacancy fees for underoccupied foreign-owned residential property. \n\nIt doesn’t set dollar amounts (those are in regulations) but caps each fee at $7,000,000 (CPI‑indexed from 1 July 2024) and provides the constitutional basis required for the fee regime to operate."}},"importantCases":[],"_links":{"self":"/api/acts/foreign-acquisitions-and-takeovers-fees-imposition-act-2015","history":"/api/acts/foreign-acquisitions-and-takeovers-fees-imposition-act-2015/history","analysis":"/api/acts/foreign-acquisitions-and-takeovers-fees-imposition-act-2015/analysis","conflicts":"/api/acts/foreign-acquisitions-and-takeovers-fees-imposition-act-2015/conflicts","importantCases":"/api/acts/foreign-acquisitions-and-takeovers-fees-imposition-act-2015/important-cases","documents":"/api/acts/foreign-acquisitions-and-takeovers-fees-imposition-act-2015/documents"}}