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FOREIGN ACQUISITIONS AND TAKEOVERS FEES IMPOSITION BILL 2015

 

 

 

2013-2014-2015 

 

The Parliament of the 

Commonwealth of Australia 

 

HOUSE OF REPRESENTATIVES 

 

 

 

 

Presented and read a first time 

 

 

 

 

Foreign Acquisitions and Takeovers Fees 

Imposition Bill 2015 

 

No.      , 2015 

 

(Treasury) 

 

 

 

A Bill for an Act to impose, as taxes, fees under the 

Foreign Acquisitions and Takeovers Act 1975, and 

for related purposes 

   

   

   

 

 

No.      , 2015 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

i 

 

Contents 

Part 1--Preliminary

 

1

 

Short title ........................................................................................... 1

 

Commencement ................................................................................. 2

 

Extension to external Territories ........................................................ 2

 

Definitions ......................................................................................... 2

 

Part 2--Imposition and amounts of fees

 

4

 

Imposition of fees .............................................................................. 4

 

Fees for applications relating to exemption certificates ..................... 4

 

Fees for giving notice of notifiable actions ........................................ 6

 

Other fees ........................................................................................... 7

 

Fees where more than one action taken ............................................. 9

 

10 

Fees for internal reorganisations ...................................................... 10

 

11 

Regulations may lower fees specified in this Part ........................... 10

 

12 

Indexation of fees ............................................................................ 10

 

Part 3--Regulations

 

14

 

13 

Regulations ...................................................................................... 14

 

 

 

 

No.      , 2015 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

1 

 

A Bill for an Act to impose, as taxes, fees under the 

Foreign Acquisitions and Takeovers Act 1975, and 

for related purposes 

The Parliament of Australia enacts: 

Part 1--Preliminary 

   

1  Short title 

 

  This Act may be cited as the Foreign Acquisitions and Takeovers 

Fees Imposition Act 2015

   

Part 1  Preliminary 

   

 

Section 2 

 

2 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

No.      , 2015 

 

2  Commencement 

 

(1)  Each provision of this Act specified in column 1 of the table 

commences, or is taken to have commenced, in accordance with 

column 2 of the table. Any other statement in column 2 has effect 

according to its terms. 

 

Commencement information 

Column 1 

Column 2 

Column 3 

Provisions 

Commencement 

Date/Details 

1.  Sections 1 to 4 

and anything in 

this Act not 

elsewhere covered 

by this table 

The day this Act receives the Royal Assent. 

 

2.  Sections 5 to 

13 

The later of: 

(a) the start of the day after this Act receives 

the Royal Assent; and 

(b) the commencement of Schedule 1 to the 

Foreign Acquisitions and Takeovers 

Legislation Amendment Act 2015

However, the provisions do not commence 

at all if the event mentioned in paragraph (b) 

does not occur. 

 

Note: 

This table relates only to the provisions of this Act as originally 

enacted. It will not be amended to deal with any later amendments of 

this Act. 

 

(2)  Any information in column 3 of the table is not part of this Act. 

10 

Information may be inserted in this column, or information in it 

11 

may be edited, in any published version of this Act. 

12 

3  Extension to external Territories 

13 

 

  This Act extends to every external Territory. 

14 

4  Definitions 

15 

 

(1)  In this Act: 

16 

   

Preliminary  Part 1 

   

 

Section 4 

 

No.      , 2015 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

3 

 

base amount has the meaning given by subsection 12(8). 

base financial year has the meaning given by subsection 12(8). 

Foreign Acquisitions Act means the Foreign Acquisitions and 

Takeovers Act 1975

indexed amount has the meaning given by subsection 12(1). 

index number has the meaning given by subsection 12(8). 

internal reorganisation means an acquisition by an entity (the first 

entity) of: 

 

(a)  an interest in securities in another entity if: 

 

(i)  both entities are subsidiaries of the same holding entity; 

10 

or 

11 

 

(ii)  the other entity is a subsidiary of the first entity; or 

12 

 

(b)  an interest in an asset or Australian land from another entity 

13 

if: 

14 

 

(i)  both entities are subsidiaries of the same holding entity; 

15 

or 

16 

 

(ii)  the other entity is the holding entity of the first entity; or 

17 

 

(iii)  the other entity is a subsidiary of the first entity. 

18 

quarter has the meaning given by subsection 12(8). 

19 

this Act includes the regulations. 

20 

 

(2)  Subject to subsection (1), an expression used in this Act that is 

21 

defined in the Foreign Acquisitions Act or regulations made for the 

22 

purposes of that Act has the same meaning in this Act as it has in 

23 

that Act or those regulations. 

24 

   

Part 2  Imposition and amounts of fees 

   

 

 

Section 5 

 

4 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

No.      , 2015 

 

Part 2--Imposition and amounts of fees 

  

5  Imposition of fees 

 

  A fee payable under Part 6 of the Foreign Acquisitions Act is 

imposed as a tax by this section. 

6  Fees for applications relating to exemption certificates 

Fees generally 

 

(1)  The amount of the fee for an application for an exemption 

certificate, or an application for a variation of an exemption 

certificate, is worked out in accordance with the following table. 

10 

 

11 

Fees for certificates 

Item 

The amount of the fee for 

an application for ...  

is ...  

an exemption certificate 

under section 57 of the 

Foreign Acquisitions Act 

$25,000. 

an exemption certificate 

under section 58 of the 

Foreign Acquisitions Act 

(a) if the application specifies that the 

consideration for the acquisitions will be 

$1 billion or less--$25,000; and 

(b) otherwise--$100,000. 

an exemption certificate 

under section 59 of the 

Foreign Acquisitions Act 

(a) if the application specifies that the 

consideration for the acquisition will be 

$1,000,000 or less--$5,000; and 

(b) otherwise--the amount worked out 

under subsection (2). 

an exemption certificate 

given under regulations 

made for the purposes of 

section 63 of the Foreign 

Acquisitions Act 

the amount not exceeding $25,000, that is 

prescribed by regulations, or worked out 

using the method prescribed by regulations, 

made for the purposes of this item. 

a variation of an exemption 

$5,000. 

   

Imposition and amounts of fees  Part 2 

 

   

 

Section 6 

 

No.      , 2015 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

5 

 

Fees for certificates 

Item 

The amount of the fee for 

an application for ...  

is ...  

certificate under section 62 

of the Foreign Acquisitions 

Act 

Note 1: 

For table item 1, see also subsection (3). 

Note 2: 

Consideration is defined by regulations made for the purposes of the 

Foreign Acquisitions Act (see section 4 of that Act). 

Note 3: 

See also sections 10 (fees for internal reorganisations), 11 (regulations 

may lower fees) and 12 (indexation of fees) of this Act. 

Fees for applications for certain exemption certificates--

consideration more than $1,000,000 

 

(2)  For the purposes of paragraph (b) of item 3 of the table, the amount 

of the fee is: 

Purchase price number

$10,000

 

10 

where: 

11 

purchase price number is the amount worked out using the 

12 

following formula, rounded down to the nearest whole number: 

13 

Amount of consideration specified in the application

1,000,000

 

14 

Fees for exemption certificates given under section 57 of the 

15 

Foreign Acquisitions Act--6 monthly fees for developers 

16 

 

(3)  The amount of a fee that is payable by a developer mentioned in 

17 

subsection 113(2) of the Foreign Acquisitions Act at the end of a 6 

18 

month period is the total of the amounts that are payable under 

19 

subsection (4) of this section for each new dwelling acquisition that 

20 

occurs during the period. 

21 

Note: 

Subsections 113(3) and (4) of the Foreign Acquisitions Act define 

22 

month period and new dwelling acquisition

23 

   

Part 2  Imposition and amounts of fees 

   

 

 

Section 7 

 

6 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

No.      , 2015 

 

 

(4)  The amount that is payable for a new dwelling acquisition is the 

amount that, at the time of the acquisition, would have been 

payable for the acquisition under item 2 of the table in 

subsection 7(1) of this Act assuming the acquisition had been a 

notifiable action. 

7  Fees for giving notice of notifiable actions 

 

(1)  The amount of the fee for giving a notice of a notifiable action 

under section 81 of the Foreign Acquisitions Act is worked out in 

accordance with the following table. 

 

10 

Fees for giving notice of notifiable actions 

Item 

If the notifiable action is  ...  

the amount of the fee is ...  

(a) to acquire a direct interest in an 

Australian entity or Australian 

business that is an agribusiness; 

or 

(b) to acquire a substantial interest in 

an Australian entity 

(a) if the consideration for the 

acquisition is $1 billion or less--

$25,000; and 

(b) otherwise--$100,000. 

to acquire an interest in residential 

land or agricultural land 

(a) if the consideration for the 

acquisition is $1,000,000 or 

less--$5,000; and 

(b) otherwise--the amount worked 

out under subsections (2) and 

(3). 

to acquire an interest in commercial 

land (other than commercial land 

that is vacant) 

$25,000. 

to acquire an interest in commercial 

land that is vacant 

$10,000. 

to acquire an interest in a mining or 

production tenement 

$25,000. 

to take a notifiable action prescribed 

by regulations made for the purposes 

of section 48 of the Foreign 

Acquisitions Act 

the amount not exceeding $100,000, 

that is prescribed by regulations, or 

worked out using the method 

prescribed by regulations, made for 

the purposes of this item. 

   

Imposition and amounts of fees  Part 2 

 

   

 

Section 8 

 

No.      , 2015 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

7 

 

Note 1: 

Consideration is defined by regulations made for the purposes of the 

Foreign Acquisitions Act (see section 4 of that Act). 

Note 2: 

See also sections 10 (fees for internal reorganisations), 11 (regulations 

may lower fees) and 12 (indexation of fees) of this Act. 

Fees for acquisition of interests in residential land or agricultural 

land--consideration more than $1,000,000 

 

(2)  For the purposes of paragraph (b) of item 2 of the table in 

subsection (1), the amount of the fee is: 

Purchase price number

$10,000

 

where: 

10 

purchase price number is the amount worked out using the 

11 

following formula, rounded down to the nearest whole number: 

12 

Consideration for the acquisition

1,000,000

 

13 

Cap on fees for acquisition of interests in agricultural land 

14 

 

(3)  If the amount of the fee under subsection (2) for an acquisition of 

15 

an interest in agricultural land is more than $100,000, the amount 

16 

of the fee is $100,000. 

17 

8  Other fees 

18 

 

(1)  The amounts of the following fees are worked out in accordance 

19 

with the following table: 

20 

 

(a)  a fee for giving a notice of a proposal to take an action that is 

21 

not a notifiable action (see items 1, 2 and 4); 

22 

 

(b)  a fee for a person: 

23 

 

(i)  in relation to whom an order was made under 

24 

Subdivision A of Division 2 of Part 3 of the Foreign 

25 

Acquisitions Act; or 

26 

 

(ii)  to whom a no objection notification was given; 

27 

   

Part 2  Imposition and amounts of fees 

   

 

 

Section 8 

 

8 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

No.      , 2015 

 

 

  if the person did not give a notice to the Treasurer relating to 

the action specified in the order or notification (see items 1 to 

4). 

 

Other fees 

Item 

If the action is  ...  

the amount of the fee is ...  

(a) to acquire an interest in securities 

in an entity that is not a 

substantial interest in the entity; 

or 

(b) to issue securities in an entity; or 

(c) to acquire interests in assets of an 

Australian business 

(a) if the consideration for the issue 

or acquisition is $1 billion or 

less--$25,000; or 

(b) otherwise--$100,000. 

(a) to enter an agreement mentioned 

in paragraph 40(2)(d) of the 

Foreign Acquisitions Act; or 

(b) to alter a constituent document of 

an entity as mentioned in 

paragraph 40(2)(e) of the 

Foreign Acquisitions Act; or 

(c) to enter or terminate a significant 

agreement with an Australian 

business 

$25,000. 

to take a significant action that is a 

notifiable action 

the amount that would have been 

payable under section 7 or any other 

provision of this Act in relation to 

the action if a notice relating to the 

action had been given. 

to take a significant action that is: 

(a) prescribed by regulations made 

for the purposes of section 44 of 

the Foreign Acquisitions Act; 

and 

(b) not a notifiable action 

the amount not exceeding $100,000, 

that is prescribed by regulations, or 

worked out using the method 

prescribed by regulations, made for 

the purposes of this item. 

Note 1: 

Consideration is defined by regulations made for the purposes of the 

Foreign Acquisitions Act (see section 4 of that Act). 

Note 2: 

See also sections 10 (fees for internal reorganisations), 11 (regulations 

may lower fees) and 12 (indexation of fees) of this Act. 

   

Imposition and amounts of fees  Part 2 

 

   

 

Section 9 

 

No.      , 2015 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

9 

 

 

(2)  The amount of the fee for a person who applies under 

subsection 76(6) of the Foreign Acquisitions Act for a variation of 

a no objection notification is: 

 

(a)  if the action specified in the notification is an acquisition of 

an interest in Australian land--$5,000; and 

 

(b)  otherwise--$10,000. 

9  Fees where more than one action taken 

 

(1)  If one agreement covers more than one action for which a fee is 

payable: 

 

(a)  a separate fee is payable in relation to each acquisition of an 

10 

interest in residential land covered by the agreement; and 

11 

 

(b)  if the agreement covers more than one other action 

12 

(disregarding any acquisitions of interests in residential 

13 

land)--the amount of the fee payable is the highest of the 

14 

amounts for those actions. 

15 

Note: 

Subsection (2) may affect how to determine the amount of a fee for a 

16 

single action that may be characterised in more than one way. 

17 

 

(2)  If either or both of the following apply: 

18 

 

(a)  a single action is covered by more than one of the following 

19 

(because the action is an action of more than one kind): 

20 

 

(i)  paragraph 40(2)(a), (b), (c), (d) or (e) of the Foreign 

21 

Acquisitions Act; 

22 

 

(ii)  paragraph 41(2)(a), (b) or (c) of the Foreign 

23 

Acquisitions Act; 

24 

 

(iii)  paragraph 43(a) of the Foreign Acquisitions Act; 

25 

 

(iv)  a provision of regulations made for the purposes of 

26 

section 44 of the Foreign Acquisitions Act; 

27 

 

(b)  a single action relating to land is covered by more than one 

28 

subsection of section 52 of the Foreign Acquisitions Act 

29 

(because the land is land of more than one kind); 

30 

the amount of the fee payable in relation to the single action is the 

31 

highest amount that applies. 

32 

   

Part 2  Imposition and amounts of fees 

   

 

 

Section 10 

 

10 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

No.      , 2015 

 

10  Fees for internal reorganisations 

 

  Despite sections 6 to 9, a fee payable in relation to one or more 

actions that constitute an internal reorganisation is $10,000. 

Note 1: 

A separate fee may be payable in relation to any other action covered 

by the same agreement as the internal reorganisation that is not part of 

the internal reorganisation. 

Note 2: 

See also section 12 (indexation of fees). 

11  Regulations may lower fees specified in this Part 

 

(1)  Despite sections 6 to 10, instead of the amount of a fee specified in 

this Part (or the amount indexed under section 12) being payable in 

10 

the circumstances specified, a lower amount (including a nil 

11 

amount) is payable if the regulations prescribe, for those 

12 

circumstances: 

13 

 

(a)  the lower amount; or 

14 

 

(b)  a method of working out the lower amount. 

15 

 

(2)  Without limiting subsection (1) or subsection 33(3A) of the Acts 

16 

Interpretation Act 1901, if this Part specifies an amount of a fee 

17 

that is payable in specified circumstances, the regulations may 

18 

prescribe an amount or method in relation to only some of those 

19 

specified circumstances. 

20 

Note: 

For example, the regulations may prescribe a lower amount for the 

21 

purposes of item 2 of the table in subsection 7(1) only in relation to 

22 

acquisitions of interests in agricultural land. 

23 

12  Indexation of fees 

24 

 

(1)  The amount of a fee specified in this Part or in regulations made 

25 

for the purposes of this Part is to be indexed each financial year 

26 

(except the base financial year) in accordance with this section. 

27 

This section explains how to work out the amount (the indexed 

28 

amount) of a fee for a financial year. 

29 

Indexation 

30 

 

(2)  The indexed amount of the fee for the financial year is worked out 

31 

in accordance with the formula: 

32 

   

Imposition and amounts of fees  Part 2 

 

   

 

Section 12 

 

No.      , 2015 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

11 

 

Base amount of the fee

Indexation factor for the financial year

 

 

(3)  The indexation factor for the financial year is the number worked 

out by dividing: 

 

(a)  the sum of the index numbers for the quarters of the 12 

month period ending on 31 March immediately before the 

financial year; by 

 

(b)  the sum of the index numbers for the quarters of the 12 

month period ending on 31 March in the financial year 

immediately before the base financial year for the base 

amount. 

10 

 

(4)  The indexation factor is to be calculated to 3 decimal places 

11 

(rounding up if the fourth decimal place is 5 or more). 

12 

 

(5)  Fees are to be worked out under this section: 

13 

 

(a)  using only the index numbers published in terms of the most 

14 

recently published index reference period for the Consumer 

15 

Price Index; and 

16 

 

(b)  disregarding index numbers that are published more than 2 

17 

weeks after the original publication in substitution for 

18 

previously published index numbers (except where the 

19 

substituted numbers are published to take account of changes 

20 

in the index reference period). 

21 

Rounding 

22 

 

(6)  If an indexed amount worked out under subsection (2) would not 

23 

be a multiple of $100, the indexed amount is rounded down to the 

24 

nearest multiple of $100. 

25 

Indexation only to increase fees 

26 

 

(7)  However, if the indexed amount worked out under subsection (2) 

27 

for a year (the current year) (after any rounding under 

28 

subsection (6)) is less than the indexed amount for the previous 

29 

financial year, the indexed amount for the current year is the 

30 

indexed amount for the previous financial year. 

31 

   

Part 2  Imposition and amounts of fees 

   

 

 

Section 12 

 

12 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

No.      , 2015 

 

Definitions 

 

(8)  In this Act: 

base amount of a fee means the amount of the fee specified in this 

Part or in regulations made for the purposes of this Part. 

base financial year for a base amount of a fee means: 

 

(a)  if the amount is specified in this Part or in regulations made 

for the purposes of this Part when section 5 commences--the 

financial year in which that commencement occurs; or 

 

(b)  if, after that commencement occurs, the amount is specified 

in this Part or in regulations made for the purposes of this 

10 

Part--the financial year in which the amount is so specified; 

11 

or 

12 

 

(c)  if the amount is specified in regulations made for the 

13 

purposes of section 11--the financial year in which the 

14 

amount is so specified; or 

15 

 

(d)  if the amount was specified in this Part or in regulations 

16 

made for the purposes of this Part, and is otherwise changed 

17 

(whether the change is the first change or a later change) by 

18 

an amending Act or amending regulations, as the case 

19 

requires--the financial year in which the amount is so 

20 

changed. 

21 

index number, for a quarter, means the All Groups Consumer 

22 

Price Index number from the original series, being the weighted 

23 

average of the 8 capital cities, published by the Australian 

24 

Statistician in respect of that quarter. 

25 

quarter means a period of 3 months beginning on 1 July, 

26 

1 October, 1 January or 1 April. 

27 

 

(9)  For the purposes of this section: 

28 

 

(a)  the following amounts are not fees: 

29 

 

(i)  the amount specified in the definition of purchase price 

30 

number in subsections 6(2) and 7(2); 

31 

 

(ii)  the amount of $1 billion or $1,000,000 specified in an 

32 

item of the table in subsection 6(1), 7(1) or 8(1); 

33 

   

Imposition and amounts of fees  Part 2 

 

   

 

Section 12 

 

No.      , 2015 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

13 

 

 

(iii)  the amount of $10,000 specified in subsections 6(2) and 

7(2); and 

 

(b)  the amounts specified in the following are taken to be fees: 

 

(i)  item 4 of the table in subsection 6(1); 

 

(ii)  item 6 of the table in subsection 7(1); 

 

(iii)  subsection 7(3); 

 

(iv)  item 4 of the table in subsection 8(1). 

Note: 

Those provisions set out a cap on the amount of a fee. 

   

Part 3  Regulations 

   

 

Section 13 

 

14 

Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 

No.      , 2015 

 

Part 3--Regulations 

   

13  Regulations 

 

  The Governor-General may make regulations prescribing matters: 

 

(a)  required or permitted by this Act to be prescribed by the 

regulations; or 

 

(b)  necessary or convenient to be prescribed for carrying out or 

giving effect to this Act. 

 


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