JIVA
PRIME MINISTER Press Statement No. 564
24 September 1975
FOREIGIJ ITWJEST". 1IT " OT, I ry
4In this statement I am amnoiumcirog details of further developments
in the Government's -policies tov.-ards foreign investmient. These
developments follow a revie',, b0y the Resources Committee of
Cabcieet tai asect ofthe policies in the light of the
ex-perience gained since December 19/ 72. Their are also intended
to clarify certain aspects of our policies here th-cre appears to
be some confusion in the minds of forelign inve-stors.
T" his announcement comporises comnot stteen ofth
Governmcnt's policy in the ffreg nvestment.
Th Goverfii-, erit is deternrined to s?: eglizuard the leg~ itimate
national 71spiration of Australians to Lachieve their rightful
9 ~ share in the control and oveisip o their resources.
1.7e reog,,), nise -1that development of those resource.,_ is essential
.0 A
lor :_ Lutrolia's aro,.! th. ' I; e believe the :; uidelines we are
setting out . will greatly assist de,. elooanient but at the same
ine Protect the ri( ghts of Akrinsin the ownership,
d evelopiment nduse of their rezoarces.
The Government is look ing to thqe bIusi ness commruni ty to
cooert wIt it in hclopi-r to -hiev, the pol i cy
objective of unaximrum actc -Lutlin particilation
2. in the activities of foreign companies operating in Australia,
on the basis of fair and reasonable negotiations. It is
also, of course, important for there to be appropriate
co-operation between the Australian Government and the
various State Governments in achieving these objectives.
For its part, the Government will be doing all in its
power to foster this co-operation.
If this co-operation is forthcoming, I believe there will
Sbe great benefits accruing to all concerned foreign
investors themselves, Australian businesses and, most
important of all, the Australian nation and the Australian
people. I emphasise that the Government recognises that Australia
will, for the foreseeable future, continue to require
foreign-capital, including equity capital, if we are to
achieve our basic aim of ensuring that Australia's resources
and industies are developed in such a way as to bring
maximum benefits to the Australian people. ' i7thin this
over-riding goal, ho'wever, the Government, while continuing
to welcome beneficial foreign capital, has a major longer
term objective of the promotion of Australian control
and the maximum Australian ownership compatible with our
long term capital requirements and our need for access
to markets, advanced technology and know-how.
recognise that the private sector has a major role to
play in achieving this objective. Public bodies such as
the AIDC also need to participate to the maximum extent
practicable if the objective is to be achieved.
This statement covers three ' main areas:
First, an expansion of the process of screening new foreign
investment poroposals, and proposals to expand existing
foreign investment activities, * here these proposals do
not invlove exchange control approvals. In a statement
on 12 June 1974, I announmccd the establishment of a new
interdepartental com-iittee ( tile Foreign Investment
Committee) to examine and rovide advice on foreign
investment proposals which come under notice through the
exchange control mechanism. At the same time, I requested
the bringing forward for the Government's consideration of
detailed proposals for the screening of foreign investment
activities w-hich do not involve exchange control approvals
for example, investment proposals financed by foreign
interests' from funds availhble to them from Australian
sources. The second area covered by todav's stUtement is a further
elaboraztion of the detail of the ' ove . riDt'S p olicy on
foreign investiment in the miner. 1l sector. The Government
hoas liven careful consideration to the questicn of foreign
investent in the miner: ls sector in the light of various
reoresentations it h(, s received to the effect that the
policy has not been spelled cut publicly ith sufficient
clarity, and that more specific guidelines are required
in order to engender business eoIfidence and to permit
both Austrilian and foreign companies to plan ahead on
projects where risks are high at the exploration stage and
lead tines are long at the develoment stag-e.
It continues to be the Government's firm policy, however,
to examine foreign investment proposals, w; hether in the
minerals sector or elsewhere, on a case-by-case basis. The
details outlined later in this statement should, therefore,
be regarded more in the natire of guidelines than as
co: istitutin inflexible rules. I stress that potential
4. foreign investors should subm.: it their proposals to the
Governm, nt at an early date. Th s is oarticulrl1 imrortant,
if the foreign investor is uncertain as to the acceptability
of his proposals. Early submission will enable the investor
to discuss the proposals with government and thereby obtain
any necessary guidance on them.
The third matter covered by today's announcement is a
review of the Governmentbpolicy on foreign investment in
Australian real estate.
The Government has now reviewed the operation of its policy
on foreig investment in real estate in Australia in the
light of the ex: perience we have gained since the first
announcement of that policy by the then Tre-asurer, M. r Crean,
in ' M1arch 1973. In the light of this review, wie have decided
to introduce certain modifications to the policy nd. to set
out clearly the principles under which the policv is to be
administered. The relevant details are set cut below.
SCHREBNINI G OF FOR. IGI InVLE IT I
First, the comprehensive scheme for the screening of foreign
investment proposals as foreshadowed lest yer.
Establishment of New Committee
The foreign Investment Committee and the Committee on
Foreign Takeovers are to be merged into a single Committee
to be known as the Foreign Investment Advisory Committee.
The new Committee will subsLime the roles of the two Committees
which it replaces. Like these Committees, it will be
advisory, and will report to the Treasurer as the ; inister
with overall responsibility for all foreign investment matters.
The new Committee will have responsibility for examining
and advising the Treasurer on foreign investment proposals
whether or not they involve exchange control approvals. At
present proposals which do not involve exchange control are
not screened by either Committee unless they fall within
the ambit of the Foreign Takeovers Act.
Although the broadening of the Comimittee's role into the area
outside exhange control and the foreign takeovers measures
is a new development as far as the screening process is concerned,
it does not involve any basic policy changes.
Foreign takeovers will continue to be examined in terms of
the Foreign Takeovers Act which was passed by the Parliament
on 21 Aug 1975.
In the non-takeovers area, the screening process will not,
for the time being, be backed by specific new legislation.
The Government believes that there are considerable advantages
for all concerned in continuing ; ith a system which relies on
0 the voluntary co-operation of business with the Government's
policy objectives.
Of course, where any aspect of a foreign investment proposal
recuires approval under the Banking ( Foreign Exchange)
Regulations, the Reserve Bank will continue its practice of
withholding such approval until the Government has indicated
that the proposal is not against the national interest.
Membership of Committee
The new Committee will comprise representatives of the
Treasury, Attorney-General's Department, the Department of
Minerals and Energy, the Department of Overseas Trade, the
Department of the Prime Minister and Cabinet, the Department
of ', anufacturing Industry, and the Reserve Bank. Representatives
of other departments will be co-opted to the Committee as
appropriate in the examination of particular proposals. As
previously, the Treasury will provide the. executive to the
Committee. Criteria to be used by Committee
All examinable foreign investmeht proposals will be screened
against the background of the Government's basic aim of
ensuring that X ustralian industries and resources are developed
in such alway as to bring maximum benefits to the Australian
people. In e: amining specific investment proposals, the Coxmmittee will
take into account~ various criteria, the most important of
which are listed in Xttachment A to this statement. These
criteria are not exclusive, however, and will be modified
a, necesary to suit partiular cases and in the light of
experience.
Relationshi; between General Foreign Investment Policy and
Foreign Thkeovers Act.
Foreign investment proposals will be examined as appropriate
for compatibility with the Covernment's general foreign
investment policy and/ or for compliance with the Government's
specific policy on foreign takeovers. However, foreign
investment proposals hich are actionable under the Foreign
Takeovers Act and which are deemed to be acceptable to the
Government in terms of that Act will not also be examined in
light of the general foreign investment policy.
7. 7orein Investments to be Screened
For all foreign investment proposuls, " foreimn interests"
for the purposes of tUhr screening process are corporations
in ! which a single foreign shareholder, or associ: Ated foreign
shareholders, own 15 percent or more of the equity of the
corporation, or in , which the total foreign equity exceeds
per ccnt; or individuals whose normal place of residence
is outside Australia. Corporations are deemed to include all
types of businesses.
Commercial investment, by fori gn governments, other than
investments related to their official representation, will
also be screened.
" Foreign investment" means funds to be invested in fixed
as-ets whether o-ned or leased, whether financed from equity
or loan funds, and 1whether financed from whatever source
within Australia dr overseas.
Sforeign investment proposal will be subject to the screening
urocess if it is for the purpoe of the foreign interests
establishing a new business or undertarking a new mining
project. In' the case of manufacturing or service industries,
such a proposal ill be taken to involve an establishment of
a new business if it would result in a foreign interest carrying
on a new primary activity as defined in the Australian Standard
Industrial Classification as published from time to time by
the Australan Bureau of Statistics, unless the new activity
w! ere primar to a class in which the foreign interest is
already engaged.
Except for non-bank financial institutions and insurance
conp~ jnies, which are dealt with later in the statement, the
Committee will dso screen foreign investment roposals involving
exponsions by existing businesses where the cost of the
expansion, in any 12 months, amounts to more than 15 per cent
of the company's total assets before the proposed expansion,
provided tiat any expansion involving more than .10 million
in any 12 months will be screened and further provided that
all proposed expansions in mining and real estate will be screened.
The Committee will also screen proposals by companies operating
in Australia to increase the overall proportionate foreign
ownership of the cmpany by more than a specified percentage
above the level of fo; reign ownership which existed at the date
of this statement. In the case of non-bank financial
institutions and insurance companies, proposals will be screened
if the foreign ownership increases by more than 5 percent,
and in other cases if the foreign ownership increases by . more
than 15 p'er cent. This applies whether or not the company
is already foreign controlled. The Foreign Takeovers Act
applies whenever there is a change in control regardless of
the degree of change in foreign ownership.
Foreign investment proposals as defined above, except those
involving the development of uranium, will not be subject to
examination ;' here the btal Australian participation in the
proposal is 85 percent or more, unless there are associated
arrangements attaching to the foreign participation which
give the foreign parties a greater degree of ownership or
control of the venture than would appear prima facie to be
the case.
Except in the case of a new non-bank financial institution
or a new insurance company, and except for minerals and real
estate, foreign investment proposals which involve funds of
less than i$ 1 million in any 12 month period will not be
subject to aeamination by the Committee, although this will
not affect the normal requirements of exchange control approval.
Furthermore, except for non-bank financial institutions,
insurance companies, minerals and real estate, if it can be
demonstrated that a foreign investment proposal will be
Australian controlled, it will in general be approved.
Proposals 1which are not . ustralian controlled will be ex-amined
on their individual merits. Controlling interest in this context
means the identiity of the interest ( company or person) in a
position to determine the major policy decisions of the venture.
Non-Bank Fiancial Institutions and Insurance Companies
Non-bank financial institutions and insurance companies are
subject to specific Australian Governrment legisltion. Australia
is already adequately supplied with non-bank financial
institutions and insurance co: 2panies. Accordingly it is
the Governnent's general objective to require foreign interests
wishing either to establish, or to participate in the establishment
of, a new non-bank financial institution or insurance company,
or to significantly increase their participation in an existing
institution, to demonstrate that the Australian economy would
be advantaged by their doing so.
Foreign investment policy in respect of non-bank financial
inrstitutions and insurance comnpanies will be broadly administered
on the same basis as other forms of foreign investment ( with
the exception of minerals and real estate). The application
of the general screening process and criteria is qualified,
ho,. ever, in four respects:
ll foreign i nvestment proposals relating to new non-bank
financial institutions or insurance companies will be
screened, irrespective of the level of funds involved.
11 propocals to increase the overall proportionate
foreign ownership of companies by more than 5 per cent
will be screened.
Since the activities of non-bank financial institutions
and insurance compnanies ar associn ted orincially
wlith financial internediition, it uoul be i na roprite
If1r these institutions te c-11e e; ucjt t o th ccee ning
bench. Lmark 15k increas e in lirhbi 1i Lies or ilO mill ion,
wichever is the low,, er) i!: nose on t'he exp-, anison of
non1-fLina--nce bus iness.
In view of thle diffic-ultvy in d~ si~ usin; betwveen thLe
various pri7_; ryt actLivitlies-) of" fina~ cial institutions,
the new screeningo arran ln! Pnts in this regaUrd will not
apply to these institutions so long as they confine
their activities to financial intermediation. H o ie ver,
where fin-ancial institution! s propose to expand their
acti( vities beyond wh-. rat is g-ens-rallyr re~ cr'rded as
financial intermediation, such an expansion will be
su~ ject to the screeningC pWrocess aD-olicable to
non-finance businesses.
Special Preas
Thce are also some othier areas in vhaich for,_ i n investment
i-s ofL Particular co-rcerii to t611e Governne-, t. As ell as the
long-san~~ rstrctiason 30r: ninvestment inba-. nk1-ing,
broaducasting! !-nd television, asindd some aspects-Of civil aviation,
the Governmentll continue-to PaY p-articular atteration to
foreig,, n investment. propoos-als in Lhe areas of real eotate and
minerals. In the -minerals alrea, other important considerations,
will continue to arise, -nd Ml cont1inue to be exaimined closely
by the Governmzent to enisur-, e ba anced devel o~ mnt of ' Lustralia's
mineral resources in th'e nati'on-a,. l interest. Our policies in
these -areas fare spelt out iM d,: tail blw
FOR IG IHV3K~ TI i TE II E7~ L~ S] CTOR
There have been several previous statement of the Government' s
genera7. l policy towcarcs forei Ign investment in the minerals
sector by myself, and by rnf colleague the . Ll. inister for Ul1nerals
and E nergy. On 7 NIov 1975, I t-ibled in Parliament a statement
had previously made at the Tokyo imeetinsg of the Australia-
11.
Japan Ministerial Committee. In addition, guidelines vere set
out in my press statements of 5 Nov 1974 and 12 Uar 1975. The
Minister for Minerals and Energy announced in the Parliament
on 51 Oct 1974 the Government's policy tovy! ards uranium in the
INorthern Territory.
Despite these statements, it appears from various communications
the Government has received that there is still uncertainty
among foreign mining companies as to some of the details of the
Gkovernment's policy on foreign -quity participation in the
mining industry in the future. The purpose of tod-y's statement
is to outline the Government's policy in detail in order to
resolve these uncertainties..
I emphasise, however, the point made earlier in this statement
that it continu. es to be the Government's firm policy to examine
all foreign investment proposals on a case-by-case basis in
order to ensure th-at Australia's resources and industries
are developed in such a way as to bring maximum benefits to
the -uspteroaplliea. n
Chere may, of course, be some proposals which do not meet the
g: uidelines, hut whichIl will have characteristics wihich make
them acceotable to the GoverneAnt. These could include cases
where foreign coi: panies are urible to id significant Australian
participation. Conversely, in the Government's consideration
of specific proposals, there will be a prima facie presumption
that proposals falling within these guidelines will be
accept3. ble to the Government unless there are special
circumstances attaching to the proposal which indicate that
its approval would be against the national interest.
A. Foreign Eq: uity Participation in . Iincral S;: ploration
The Government has reviewed-the administration of its policy
towa-rds foreign equity participation in mineral exploration
12. in the light of thle experievice ; ice rcC h etUbl-hnn
of the 1Foreign Inve-tment Co,-nz-itt,+ ce in June 1974. T'fe consider
there is scope for some admini2 tra2tive ch-Mn7e-whicha sh ould
be Of benef it to both1 Austrjia.-;,_ n : dforeign71 expDlor,. tion
convTanies and which vwill LA the same time continue to meet
the Government's policy obJectives.
The GovernMient viishes to see a significant d'egree of stralian
involvement in mineral ex-olora tion, includ0ingc p. articipation.
with foreign expl1, ora. tion coippanies. '. lthough it ! Azll nbt be
Smandatoryr for for.-ign expoloration companies to seek Austr-alian
participation at the outset of initial, or gras, roots,
exYDloratton prog-ram-s, it w.-ill be necessary-for those companies
to notifoy the Foreig-n Investment -Advisory Committee df their
e-7plora,-tion pro. g) rims at the ti me they are formul. ated or
subsequently signi. ficantlyr vw-ried. Foreig-n companies will
in f. u ture be required to report to tUhe Treasurer, througxh the
Foreign Investmen-t ' Idvisory Comitut e he thI-tie
p~ rov'iing up) sta.. e is reached and in any case ever., y tw-. o yea. rs
on tille el Fortste are m:! kin t atrac t a-l-i
S ~ participjAion in their C: r) ortiu ctivities in !. ustralia.
Thnel y xcepion to the procedure outlined in the preceding
p , Zi'gr is uranu exploratiorn in the Irthei-n Territory.
As announccd by t11he M.' inis ter 1or Minerals and. 7nergy o n
31 October 19741, all1. exoPloratio. for uaimi the
J . oU. 1ern Territory, 411il be c~ trriedl out exclusive ly by the
~. stt lin omic Ener. yCo) isin
The pr-ocedure w.. ill app.-lyf to both on-shore and off-shore
For: Li~ n compa~ nios making co,;-crcial minera,. l discoveries
will be able to proceed to -the development of those discoveries
13. only on the basis of thlie guidelines for Austr-, lin participation
in development projects outlined below. Australian participation
is to be sought on fair and reasonable terms, on the basis
of normal commercial negotiations.
B. Foreign Equity Participation at the Lineral Development
Stage Uranium. The Government's policy objective is to
seek full Australian ownexshi in the development of
uranium deposits. However, in relation to foreign
comPanies which alre dyv Ive di scoveredi, or may in
the future discover, uranium ore bodies on exploration
licences or equivalent exploration titles granted up
S to the date of this statement, the Governm: ent will be
prepared to discuss with those companies their
partici-ation in the development of those ore bodies
on fair and reasonable terms. The development of uranium
ore bodies discovered on exploration licences or equivalent
exploration titles granted after the date of this
w; taitlelr cnbet on the basis of 100 per cent Australian
ownership.
( ii) Other 7inerals. The Govern-ent has as a desired objective
the promotion of Australian equity in-and control of
its mineral resources, and maxinun Austrlian ownership
compatible with ustral. ia's longtcrm capital requirements
and its need for access to mrkets, teclhnology and
know-how. Howtzev er, given the existin high degree of
foreign ownership and control in the ninerils sector,
we recognise that this objective can only be met in a
total sense in the longer term.
a Lmsa jor step to-wards this objective, the Government
will expect proposals-for all new mine-al development
14. projects ( other than those relating to uranium) to
have no more than 50 per cent foreign ownership, and
with the foreign participants having no more than
per cent of the voting strength on the board of the
development compuany. The Governmcnt w'ill not insist
on the Australian participants necessarily being the
technical operators and supervisors cf the project, but
will expect Australian nationals to have a significant
role to play in the managgeent, tecinical operation and
4 control. This procedure will apply to development proposals both
on-store and off-shore.
In considering proposals for foreign equity participation
in mineral development projects, account will be taken
of the relationship between the prospective foreign
participant and the expected main sources of demand for
the output of the development.
SExport Licences
A foreign investment proposal for mineral development which
receives approval from the Government as being not inconsistent
with its fo:-ign investment policies can be assured that it
will not be disadvantaged, in. applications for export licences,
because of the degree of foreign participation in the development.
AC U TI''" I OF REAL ESTATIE BY FOREIGI INTERE77. T
In a statement on 20 March 1973, the then Treasurer, Mr Crean,
drew attentio to the Government's concern about the ownership
and control of Australia's resources and, in particular,
asked overseas interests not to enter into significant commitments
for real estate purchases for the time being. Later that year,
I said that specific proposals involving foreign investment
in real esttte would be examined on their merits. This
case-by-case approach to foreign investment in real estate
has operated since then.
The Government has reviewed its policy, and the administration
of this policy, in this ea in the lighit of the experience
gained in the past two years.
Within the general context of the foreign investment policy,
the Government is particularly concecned to ensure that
Australian real estate does not mme under the ownership
of foreign interests except in certain specific instances.
The detailed principles which will govern the administration
of the Government's policy with regard to foreign investment
in ustralian real estate are set out iq Attachment B to
this statement.
SUB' I " SIFoI P iH1E. ji', I T PCLW: L
41 There a foreign takeover is involved, foreign investors should
continue to submit their proposals to the Treasury in Canberra.
All other proposals should be submitted, in duplicate, either
to the Treasury or to the Reserve Bank.
In the non-tzIkeove: s area, applicants ctn expect to receive
a decision by the Gove-nient. on their proposal within a
maxi. ium -euiod of 90 days from the d'eo of submission of the
proposal. It is expected, however, that most proposals will
be determined in a significantly shorter time. In the
takeovers area the time periods are laid down in the Foreign
T,. eover . ct.
ATTACHMENT A
CRITERIA FOR ASSESSMENT OF FOREIGN IMrSTiENT PROPOSALS
The objectives of the Government's foreign investment policy
are twofold: To ensure that foreign investment proposals are
associated with productive investment which adds
to Australia's real resources and brings benefit
to the nation; and
Whilst continuing to welcome beneficial foreign
capital, to promote, in the longer term Australian
control and maximum practicable Australian
ownership of its industries and resources.
For foreign takeovers the criteria wvill continue to be as
spelt outein the Treasurer's second reading speech on the
Foreign Takeovers Bill 1975. In the non-takeovers area
the Foreign Investment Advisory Committee will, in considering
cases for the purpose of advising the Treasurer whether or
not proposals ares against the national interest, take account
of a wide variety of criteria. The most important of these
are outlined below ( they are similar to those applicable to
takeover proposals). iowever, given the very great variation
between proposals, it should be kept in mind that not only
vill a specific criterion not necessarily apply in a: particular
case but that the weighting given to it may well vary from
case to case.
OWNERSHIP AND CONTROL
In the light of the Governmentts objectives with regard to
Australian control and ownership, the Committee will take
into account: the extent of Australian control ( including
management) and ownership in a project; and
the extent to which the participants have sought
Australian equity participation from either the
private or the public sector.
NET ECONOMIC BENEFITS
The Committee will take into account whether, against the
background of existing circumstances in the industry concerned,
the proposal will lead, either directly or indirectly, to
net economic benefits in relation to such matters as:
a broadening of Australia's industry base;
competition, level of prices and efficiency;
productive capacity;
introduction of new technology, managerial
skills uand other know-how;
development of new mark9ts;
production;
S quality and range of products and services;
employment, including numbers and staff training.
ADDITIONAL CRITERIA
In assessing a proposal the following additional criteria
will also be takeh into account:
whether the new venture could be expected to
S follow commercial practices consistent with
S Australia's interest in matters such as:
exports local processing of materials produced
research and development
industrial relations
financial arrangements, including taxation
royalty and licencing arrangements
the interests of shareholders, insurance
policy holders, and claim holders generally,
as appropriate.
whether the proposal would be consistent with
Australia's international obligations and with the
Government's objectives for, inter alia:
environment
urban and regional development
Aboriginal land rights
maximum practicable Australian ownership of
real estate
defence.
ATTACHIMENT B
GUIDELINES GOVRN! ING THE ADMI. NISTRATION OP GOVENMNT
POLICY ON FOREIGN INVESTMENT IN AUSTIRALIAN REAL ESTATE
Application of the real estate policy is not restricted to
large invetments, but covers all cases no matter what their
size unless otherwise specified below. The policy covers
ownership of Australian real estate, and therefore applies
to all forms of freehold acquisition. However, it also
applies to certain types of leasehold acquisition. The
policy also applies whether or not the foreign investment
proposal requires exchange control approval. The sale and/ or
transfer of real estate between foreigners is subject to the
real estate policy.
SThe acquisition of an interest in real estate for mining or
quarrying purposes will not be determined in the context of
the Government's real estate policy. Such investments will
be examined, as in the past, in the light of the Government's
policy on foreign investment in mining.
Investment by a foreign interest associated with and made in
order to complete a contractual commitment to acquire or
dovelop real estate made prior to 20 March 1973, will continue
Snot to be affected by the Government's real estate policy.
SThe following categories of real estate investment will, as
Sa general rule, be approved as being in conformity with the
Government's policy:
acquisitions of real estate by life insurance
companies where such , acquisitions represent the
investment of the company's Australian statutory
funds; acquisitions by foreign or overseas controlled
charities or charitable trusts which operate in
Australia for the benefit of Australians;
acquisitions of land-and/ or a residence; a business;
or a farm, for their own ultimate use by:
expatriate Australians who intend to resume
residence in Australia ( up to a total amount
of $ 100,000, with applications for amounts
in excess of this to be considered on their
individual merits);
intending migrants who have been formally
accepted as such by the Australian Government.
transfers of real estate between overseas residents
who are members of the same family, provided that
the grounds for undertaking any such transfer do
not conflict with the Government's policy in this
or other areas;
acquisition of residences by foreign or overseas
controlled companies exclusively for use by their
f
employees resident or temporarily resident and
working in Australia;
S( f) acquisitions of residences for their own or their
irimediate family's use by foreign individuals,
temporarily working or resident in Australia;
S( g) acquisition of offices and residences by foreign
missions for use as official missions or as
residences for staff.
Approval for acquisitions listed in and above
will be conditional on the properties being sold to Australians,
C or other eligible purchasers, when they are no longer being
used for the approved purpose.
Applications for the acquisition of the following types of
real estate will be critically examined, having in mind both
the Government's normal criteria for foreign investment
proposals and the special significance the Government attaches
to foreign acquisition of real estate. ( The normal criteria
are listed in Attachment A to the Prime Minister's statement.)
real estate incidental to other purposes. This may
include factories, shops, hotels, etc or sites
therefore acquired by foreign interests and necessary
for their own use in pursuit of the purpose concerned;
real estate which is in the nature of normal stock-intrade
for real estate developers and which is to be
developed within a specific period and sold to
Australians ( or to foreign interests oligible to
acquire Australian real estate) on completion of
development. Land held by developers for speculative
purposes or for development at some indefinite time
in the future will not be regarded as nor. mal stock-intrade;
properties for long term use for rural purposes and
which can be expected to continue to be available for
such purposes.
All forms of real estate acquisition other than those outlined
in the foregoing ill not normally be approved.
As well as freehold, the term " real estate" for the purposes
of this statement includes leases which provide for profit
sharing arrangements to the foreign lessee, which carry
options to purchase, which provide for a transfer of ownership
in specified circumstances, or which provide for compensation
or payment on surrender of the lease. Leases which do not
include any of these provisions will normally be accepted as
being in conformity with the Government's policy.