The Treasurer is responsible for deciding whether a particular investment is 'contrary to the national interest'. The Treasurer can either approve a proposal, approve it with conditions, or reject it as being contrary to the national interest. Rejections are rare and in instances of large and complex transactions, the FIRB will work with investors to navigate sensitive issues.
In general, proposals to acquire an interest of 20 per cent or more in any business valued at over A$252 million (or a higher threshold of A$1,094 million for agreement country investors from Chile, China, Japan, Korea, New Zealand and the US) require prior FIRB approval. All foreign government investors require approval to acquire a direct interest in an Australian entity or business, regardless of the value of the investment. While not defined by legislation, Australia's foreign investment policy (available at firb.gov.au) sets out matters for consideration in assessing an application such as: national security, competition, other Australian government policies, the impact on the economy and the community, and the character of the investor.
Potential investors must lodge an application in advance of any reviewable transaction and are encouraged to engage with the FIRB prior to lodging an application on significant proposals for timely consideration and to assess any complex issues. A fee is payable for all applications which can be lodged electronically at firb.gov.au. The FIRB website has a range of information including details of fees for different proposal types, guidance notes, and factsheets to help investors understand the FIRB system. The Treasurer has 30 days to consider an application and make a decision. Applicants will be informed of the decision within 10 days of it being made.