PM Transcripts

PRIME MINISTER
STATEMENT BY THE PRT-! E MINISTER, THE RT. HON.
WILLIAM 1-cIYV\ HON, C11, ~ P
IN THE HOUSE OF REPRESENTATIVES, CANBERRA
OUTWARD PORTFOLIO INVESTVIENT
28 SEPTEMBER, 1972
Following my announcement on policy changes in respect of
overseas investment, I now wish to give details of the new exchange
control policy which will apply for the time being to portfolio
investment abroad by Australian residents.
Persons or companies wishing to invest abroad should apply
by letter through their bankers for the necessary Reserve Bank
authority. Applications by individuals for amounts up to $ 10,000
in any period of twelve months in total will normally be readily
approved. Institutional investors, public companies and the like
can normally expect to be permitted to make inves-tments up to
$ 1 million in any period of twelve months. Applications for amounts
in excess of the amounts mentioned will be considered in special
circumstances. Eligible investments will include portfolio investment
overseas in stocks and shares and purchase of real estate, but
will not include investment in loans or other fixed interest
securities. The general arrangements will, of course, be subject to
review from time to time.
This policy change is the first significant relaxation in
the almosta~ mplete embargo on Portfolio investment overseas which
had operated since exchange control measures were introduced in
1939. Policy towards direct investment overseas has, however,
been very liberal for a number of years and will continue unchanged.