Implications of the Abbott Government Tightening Rules on Foreign Direct Investment into Australia's Agriculture Market
This month, the Abbott Government heightened its scrutiny of foreign investment into Australia’s agriculture industry by significantly reducing the ceiling at which farmland purchases would trigger regulatory review and approval. These reforms were unveiled amid concerns that local farmers were not being protected adequately and that Australians were losing control of their national agricultural assets. Yet, when compared to other major exporters, Australia has received a high level of interest and investment in agriculture because of a lack of capital to help expand the industry.
Will these new reforms deter potential investors? What impact will these changes have on parties involved in the sale or purchase of distressed agricultural assets and for parties seeking to invest more broadly in Australian agriculture?
In this update, FTI Consulting’s Agribusiness team provides an overview of the updated regulations and focuses on what you need to know as a result of the changes which came into effect 1 March 2015.