Foreign persons are required to pay a fee for each application made under the Foreign Acquisitions and Takeovers Act 1975 (“the Act”). The kinds of actions for the applications include acquisitions of residential land, commercial land, tenements, businesses and entities, agricultural land and reviewable national security actions (such as infrastructure or telecommunications entities).
From 29 July 2022, the fees will double.
When is the application fee payable?
Fees are generally payable at the time an application is lodged. The statutory timeframe for making a decision on an application is, in most cases, 30 days from the date the correct fee is paid.
How much fee is payable?
The amount payable depends on the value and type of action being taken, and whether special fee rules apply.
Group of Actions
Sometimes, a person may wish to acquire a group of actions under a single agreement. Fees for those actions are worked out together, with a separate fee payable for each “kind” of action (e.g. acquiring land) instead of each individual action.
Different rules may apply when working out the fees for actions grouped under a single agreement.
Some applications may not have a clear consideration amount (e.g. starting a new business or internally reorganising assets and entities inside a wholly-owned group of entities). For these applications, a flat fee will be payable. Sometimes, a lower flat fee may be available for transactions that meet certain criteria.
The maximum fees cannot exceed $1,045,000 (or in the case of reviewable national security actions, $261,250).
Longton Legal has dealt with many foreign investment approvals over the past years. If you would like our assistance in this area, please do not hesitate to contact us.
*Disclaimer: This is intended as general information only and not to be construed as legal advice. The above information is subject to changes over time. You should always seek professional advice beforetaking any course of action.*
Source: Guidance 10, Fees on Foreign Investment Applications.
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