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Commonwealth act
The Act governs when and how foreign persons and foreign‑owned entities can buy Australian land, businesses or company interests, requiring pre‑clearance, reporting and payment of fees for many transactions—especially in sensitive sectors (agriculture, defence, critical infrastructure) or involving foreign governments.
The Treasurer can approve, impose conditions, block or unwind transactions; breaches risk criminal or civil penalties. It affects foreign investors, Australian sellers, issuers of new shares and operators of land, agribusiness and national‑security‑related businesses.
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Direct links to the current provisions in Foreign Acquisitions and Takeovers Act 1975.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
An Act relating to the foreign acquisition of certain land interests and to the foreign acquisition and foreign control of certain business enterprises and mineral rights
This Act may be cited as the Foreign Acquisitions and Takeovers Act 1975.
This Act shall come into operation on a date to be fixed by Proclamation.
This Act deals with certain actions to acquire interests in securities, assets or Australian land, and actions taken in relation to entities (being corporations and unit trusts) and businesses, that have a connection to Australia. These actions are called significant actions. For an action to be a significant action, the action must in most cases result in a change in control involving a foreign person or be taken by a foreign person.
This Act also deals with actions taken by persons that have, or may have, implications for Australia’s national security. These actions may or may not be significant actions. Actions relating to a national security business or national security land are notifiable national security actions. If an action is a reviewable national security action, or a significant action that is not a notifiable action or a notifiable national security action, the Treasurer may review the action if the Treasurer considers that the action may pose a national security concern.
If a person proposes to take or has taken an action, the Treasurer has power to do one or more of the following:
(a) decide that the Commonwealth has no objection to the action;
(b) impose conditions on the action;
(c) prohibit the action;
(d) require the action to be undone (for example, by requiring the disposal of an interest that has been acquired).
Offences and civil penalties apply for failing to comply with:
(a) an order made prohibiting an action, or requiring an action to be undone; or
(b) a condition imposed on an action.
Significant actions that are notifiable actions, and notifiable national security actions, must generally be notified to the Treasurer before the actions can be taken. Offences and civil penalties may apply if a notifiable action is taken without a notice having been given. Broadly, if a notice has been given stating that a significant action is proposed to be taken, the action must not be taken before the end of a specified period (generally of 40 days, or an additional period of up to 90 days from the registration of an interim order).
Fees are payable in relation to applications and orders made, and notices and notifications given, under this Act.
A person must make and keep records for the purposes of this Act, including in relation to significant actions and notifiable actions. Information that is obtained for the purposes of this Act (called protected information) may be disclosed only for certain purposes. A person who obtains, uses or discloses protected information other than as authorised by this Act may commit an offence.
The Register of Foreign Ownership of Australian Assets is kept under Part 7A.
The Register records certain actions relating to interests acquired, held or disposed of by foreign persons. A foreign person who takes such an action (which may or may not be a significant action or a notifiable action, or otherwise covered by this Act) must give a register notice to the Registrar. In some circumstances, other people must also give notices to the Register. A civil penalty applies to a failure to give a notice under Part 7A.
In this Act:
6 month period has the meaning given by subsection 113(3).
acquire an interest of a specified percentage:
(a) in a business—has the meaning given by section 19A; and
(b) in an entity—has the meaning given by section 20.
acquisition of property has the same meaning as in paragraph 51(xxxi) of the Constitution.
aggregate interest of a specified percentage in an entity has the meaning given by subsection 17(2).
aggregate substantial interest: 2 or more persons hold an aggregate substantial interest in an entity or trust if:
(a) for an entity—the persons hold an aggregate interest of at least 40% in the entity; or
(b) for a trust (including a unit trust)—the persons, together with any one or more associates of any of them hold, in the aggregate, beneficial interests in at least 40% of the income or property of the trust.
Note: See also sections 17 (meanings of interest and aggregate interest of a specified percentage in an entity) and 18 (rules relating to determining percentages of interests in entities).
agribusiness: an Australian entity or Australian business is an agribusiness in the circumstances prescribed by the regulations.
agricultural land means land in Australia that is used, or that could reasonably be used, for a primary production business.
Note: The regulations may provide that land of a specified kind is not agricultural land (see subsection 37(3)).
agricultural land corporation has the meaning prescribed by the regulations.
agricultural land trust has the meaning prescribed by the regulations.
ART Act means the Administrative Review Tribunal Act 2024.
asset includes an interest in an asset.
associate has the meaning given by section 6.
Australia, when used in a geographical sense, includes the external Territories.
Australian business has the meaning given by section 8.
Australian corporation means a corporation formed in Australia.
Australian entity means an Australian corporation or an Australian unit trust.
Australian land means agricultural land, commercial land, residential land or a mining or production tenement.
Australian land corporation has the meaning prescribed by the regulations.
Australian land trust has the meaning prescribed by the regulations.
Australian subsidiary of a foreign entity means an Australian entity that is a subsidiary of the foreign entity.
Note: For the definition of subsidiary, see section 21.
Australian unit trust means a unit trust:
(a) the trustee of which holds relevant Australian assets; or
(b) the trustee of which carries on an Australian business; or
(c) the central management and control of which is in Australia; or
(d) in which one or more persons who are ordinarily resident in Australia hold more than 50% of the beneficial interests in the income or property of the unit trust; or
(e) that is listed for quotation in the official list of a stock exchange in Australia.
Australian water access entitlement means a perpetual or ongoing entitlement, by or under a law of a State or Territory, to exclusive access to a share of the water resources of an area in the State or Territory.
authorised officer means a person appointed as an authorised officer under subsection 101E(1).
business includes any activity carried on by:
(a) the Commonwealth, a State, a Territory or a local governing body; or
(b) a body corporate established for a public purpose by or under a law of the Commonwealth, a State or a Territory; or
(c) an entity wholly owned by the Commonwealth, a State, a Territory, a local governing body or a body corporate covered by paragraph (b).
change in control has the meaning given by section 54.
civil penalty provision has the same meaning as in the Regulatory Powers Act.
commercial land means land in Australia or the seabed of the offshore area, other than land:
(a) used wholly and exclusively for a primary production business; or
(b) on which there is at least one dwelling (except commercial residential premises); or
(c) on which the number of dwellings (except commercial residential premises) that could reasonably be built is less than the number prescribed by the regulations for the purposes of subparagraph (a)(ii) of the definition of residential land in this section.
commercial residential premises has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999.
Commonwealth, State or Territory body includes a Department of State, or an authority or agency, of the Commonwealth, a State or a Territory.
consideration has the meaning prescribed by the regulations.
constituent document of an entity or unincorporated limited partnership means any rules or other document constituting or establishing the entity or partnership or governing its activities, and includes:
(a) for a corporation—the constitution of the corporation; and
(b) for a unit trust—the trust deed for the trust; and
(c) for an unincorporated limited partnership—the partnership agreement.
contractual water right of a person means a right that the person holds (alone or jointly) under a contract or a deed to all or part of another person’s:
(a) registrable water entitlement; or
(b) water allocation; or
(c) right of a kind specified in the regulations.
controls:
(a) the voting power—has the meaning given by section 23; and
(b) an entity or business—has the meaning given by subsections 54(4) and (5).
core Part 3 action means any of the following:
(a) a significant action (other than an action mentioned in paragraph (b));
(b) any of the following actions:
(i) a notifiable national security action that is not a significant action;
(ii) an action in respect of which the Treasurer has given notice under subsection 66A(4);
(iii) a reviewable national security action that is notified to the Treasurer.
data standards means standards determined by the Registrar under section 130ZZ.
debenture includes:
(a) debenture stock, bonds and notes; and
(b) any other document evidencing or acknowledging indebtedness of an entity, whether or not constituting a charge on the assets of the entity.
decision period has the meaning given by subsection 77(8).
determines the policy of a business of exploiting a mining or production tenement has a meaning affected by section 24.
development means one or more multi‑storey buildings if:
(a) the buildings will be, are being or have been built; and
(b) the buildings are or were under one development approval; and
(c) the number of independent self‑contained dwellings (other than townhouses) that the buildings contain or will contain is at least the number prescribed by the regulations.
direct interest has the meaning prescribed by the regulations.
director includes any person occupying the position of director (however described) of a corporation.
eligible Registrar appointee means:
(a) an Agency (within the meaning of the Public Service Act 1999); or
(b) a body, whether incorporated or not, established for a public purpose by or under a law of the Commonwealth; or
(c) a person:
(i) holding or performing the duties of an office established by or under a law of the Commonwealth; or
(ii) holding an appointment made under a law of the Commonwealth.
engage in conduct includes fail or refuse to engage in conduct.
enters has a meaning affected by section 25.
entity means a corporation or a unit trust.
established dwelling means a dwelling (except commercial residential premises) on residential land that is not a new dwelling.
exempt core Part 3 action means an action which would be a core Part 3 action if an exemption certificate did not relate to the action.
exemption certificate means a certificate given under:
(a) section 57, 58 or 59; or
(b) regulations made for the purposes of section 63.
exploration tenement means any of the following:
(a) a right (however described) under a law of the Commonwealth, a State or a Territory to recover minerals (such as coal or ore), oil or gas in Australia or from the seabed or subsoil of the offshore area for the purposes of prospecting or exploring for minerals, oil or gas;
(b) a right that preserves a right mentioned in paragraph (a);
(c) a lease under which the lessee has a right mentioned in paragraph (a) or (b);
(d) an interest in a right mentioned in paragraph (a) or (b) or under a lease mentioned in paragraph (c).
foreign corporation means a foreign corporation to which paragraph 51(xx) of the Constitution applies.
foreign entity means an entity that is not an Australian entity.
foreign government means an entity (within the ordinary meaning of the term) that is:
(a) a body politic of a foreign country; or
(b) a body politic of part of a foreign country; or
(c) a part of a body politic mentioned in paragraph (a) or (b).
foreign government investor has the meaning prescribed by the regulations.
foreign person means:
(a) an individual not ordinarily resident in Australia; or
(b) a corporation in which an individual not ordinarily resident in Australia, a foreign corporation or a foreign government holds a substantial interest; or
(c) a corporation in which 2 or more persons, each of whom is an individual not ordinarily resident in Australia, a foreign corporation or a foreign government, hold an aggregate substantial interest; or
(d) the trustee of a trust in which an individual not ordinarily resident in Australia, a foreign corporation or a foreign government holds a substantial interest; or
(e) the trustee of a trust in which 2 or more persons, each of whom is an individual not ordinarily resident in Australia, a foreign corporation or a foreign government, hold an aggregate substantial interest; or
(f) a foreign government; or
(g) any other person, or any other person that meets the conditions, prescribed by the regulations.
Note: In certain circumstances, an associate of a foreign person may be taken to be a foreign person even if the associate is not a foreign person (see subsection 54(7)).
general meeting of an entity or unincorporated limited partnership means:
(a) for a corporation—a general meeting of the corporation; or
(b) for a unit trust—a meeting of unit holders of the trust that is held in accordance with a constituent document of the trust; or
(c) for an unincorporated limited partnership—a meeting of partners of the partnership that is held in accordance with a constituent document of the partnership.
general partner means a partner of a limited partnership whose liability relating to the partnership is not limited.
head has the same meaning as in the Office of National Intelligence Act 2018.
holding entity has the meaning given by subsection 21(4).
independent director has the meaning given by section 7.
interest:
(a) in a security—has the meaning given by section 9; and
(b) in an asset—has the meaning given by section 10; and
(c) in a trust—has the meaning given by section 11; and
(ca) in an unincorporated limited partnership—has the meaning given by section 11A; and
(d) in Australian land—has the meaning given by section 12; and
(da) in a business—has the meaning given by section 16A; and
(e) of a specified percentage in an entity—has the meaning given by section 17; and
(f) of a specified percentage in an unincorporated limited partnership—has the meaning given by subsection 17(2A).
Note: For other rules relating to interests in a security, asset, trust or Australian land, see sections 13 to 15.
interim order means an order made under section 68.
just terms has the same meaning as in paragraph 51(xxxi) of the Constitution.
land includes:
(a) a building (including a new dwelling or an established dwelling) or a part of a building; and
(b) subsoil of land.
land register means a register kept under a law of the Commonwealth, a State or a Territory in which interests (within the ordinary meaning of the term) in Australian land are registered.
This is an opening excerpt, not the complete document.