56Acquisition of securities in a land entity

56 Acquisition of securities in a land entity

(1) If: (a) a person acquires an interest in securities in a land entity (the actual acquisition); and (b) apart from this section, the acquisition would be an action for which a fee would be payable under subsection 113(1) of the Foreign Acquisitions Act; then for the purposes of this instrument: (c) treat the action as if it were instead (and were only) an acquisition by the person: (i) of an interest in Australian land of the same kind as the entity’s dominant land holding; and (ii) for which the value of the consideration was equal to the value of the consideration for the actual acquisition; and (iii) that is a reviewable national security action if the actual acquisition is a reviewable national security action; and (d) work out the amount of the fee for the action accordingly under this instrument.

Note: A replacement fee worked out under Part 2 may itself be replaced by a fee worked out under Subdivision B of Division 2 of this Part (about an agreement covering more than one action).

(2) The entity’s dominant land holding is worked out by: (a) identifying all the kinds of relevant land in which the entity holds interests at the time of the actual acquisition; and (b) making a reasonable assessment of the total value of the interests in each of those kinds of relevant land; and (c) selecting the kind of relevant land corresponding to that highest total value. Modification for residential land with established dwelling (3) However, if the entity’s dominant land holding is residential land, and the entity holds an interest in residential land on which there is at least one established dwelling, then, despite subsection (1), for the purposes of this instrument: (a) treat the action as if it were instead 2 actions by the person comprising: (i) the acquisition described in subsection (4); and (ii) the acquisition described in subsection (5); and (b) work out the amount of the fee for the actions accordingly under this instrument. (4) The acquisition mentioned in subparagraph (3)(a)(i) is an acquisition: (a) of an interest in residential land on which there is at least one established dwelling; and (b) for which the value of the consideration is so much of the value of the consideration for the actual acquisition as is attributable to the entity’s interests in residential land on which there is at least one established dwelling; and (c) that is a reviewable national security action if the actual acquisition is a reviewable national security action. (5) The acquisition mentioned in subparagraph (3)(a)(ii) is an acquisition: (a) of an interest in residential land on which there are no established dwellings; and (b) for which the value of the consideration is so much of the value of the consideration for the actual acquisition as is not attributable to the entity’s interests in residential land on which there is at least one established dwelling; and (c) that is a reviewable national security action if the actual acquisition is a reviewable national security action. (6) For the purposes of paragraphs (4)(b) and (5)(b), consideration is taken to be attributable to particular interests in residential land to the same extent as the total asset value of the land entity is attributable to those interests.