[Index] [Search] [Download] [Related Items] [Help]
This is a Bill, not an Act. For current law, see the Acts databases.
2013-2014-2015
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Foreign Acquisitions and Takeovers
Legislation Amendment Bill 2015
No. , 2015
(Treasury)
A Bill for an Act to amend the law relating to
foreign acquisitions and takeovers, and for related
purposes
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Main amendments
3
Foreign Acquisitions and Takeovers Act 1975
3
Schedule 2--Amendments contingent on the Acts and
Instruments (Framework Reform) Act 2015
112
Foreign Acquisitions and Takeovers Act 1975
112
Schedule 3--Application and transitional provisions for
Schedules 1 and 2 and Fees Imposition Act
114
Schedule 4--Amendments of confidentiality provisions
122
Anti-Money Laundering and Counter-Terrorism Financing Act 2006
122
Income Tax Assessment Act 1997
122
Taxation Administration Act 1953
122
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
1
A Bill for an Act to amend the law relating to
1
foreign acquisitions and takeovers, and for related
2
purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act may be cited as the Foreign Acquisitions and Takeovers
6
Legislation Amendment Act 2015.
7
2 Commencement
8
(1) Each provision of this Act specified in column 1 of the table
9
commences, or is taken to have commenced, in accordance with
10
column 2 of the table. Any other statement in column 2 has effect
11
according to its terms.
12
13
2
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Commencement information
Column 1
Column 2
Column 3
Provisions
Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedule 1
1 December 2015.
1 December
2015
3. Schedule 2
Immediately after the commencement of
Schedule 1 to the Acts and Instruments
(Framework Reform) Act 2015.
4. Schedules 3
and 4
1 December 2015.
1 December
2015
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedules
7
Legislation that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
3
Schedule 1
--Main amendments
1
2
Foreign Acquisitions and Takeovers Act 1975
3
1 Title
4
After "and to the", insert "foreign acquisition and".
5
2 Part I (heading)
6
Repeal the heading, substitute:
7
Part 1--Preliminary
8
Division 1--Preliminary
9
3 Sections 3 to 17
10
Repeal the sections, substitute:
11
3 Simplified outline of this Act
12
This Act deals with certain actions to acquire interests in securities,
13
assets or Australian land, and actions taken in relation to entities
14
(being corporations and unit trusts) and businesses, that have a
15
connection to Australia. These actions are called significant
16
actions. For an action to be a significant action, the action must
17
result in a change in control involving a foreign person or be taken
18
by a foreign person.
19
If a person proposes to take or has taken a significant action, the
20
Treasurer has power to do one or more of the following:
21
(a)
decide that the Commonwealth has no objection to the
22
action;
23
(b)
impose conditions on the action;
24
(c)
prohibit the action;
25
(d)
require the action to be undone (for example, by
26
requiring the disposal of an interest that has been
27
acquired).
28
Schedule 1 Main amendments
4
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Offences and civil penalties apply for failing to comply with:
1
(a)
an order made prohibiting an action, or requiring an
2
action to be undone; or
3
(b)
a condition imposed on an action.
4
Some significant actions (called notifiable actions) must also be
5
notified to the Treasurer before the actions can be taken. Offences
6
and civil penalties may apply if a notifiable action is taken without
7
a notice having been given. If a notice has been given stating that a
8
significant action is proposed to be taken, the action must not be
9
taken before the end of a specified period (generally of 40 days, or
10
an additional period of up to 90 days from the publication of an
11
interim order).
12
Fees are payable in relation to applications and orders made, and
13
notices and notifications given, under this Act.
14
A person must make and keep records for the purposes of this Act,
15
including in relation to significant actions and notifiable actions.
16
Information that is obtained for the purposes of this Act (called
17
protected information) may be disclosed only for certain purposes.
18
A person who obtains, uses or discloses protected information
19
other than as authorised by this Act may commit an offence.
20
Division 2--Definitions
21
Subdivision A--Dictionary of definitions
22
4 Dictionary of definitions
23
In this Act:
24
6 month period has the meaning given by subsection 113(3).
25
acquire an interest of a specified percentage in an entity has the
26
meaning given by section 20.
27
acquisition of property has the same meaning as in
28
paragraph 51(xxxi) of the Constitution.
29
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
5
aggregate interest of a specified percentage in an entity has the
1
meaning given by subsection 17(2).
2
aggregate substantial interest: 2 or more persons hold an
3
aggregate substantial interest in an entity or trust if:
4
(a) for an entity--the persons hold an aggregate interest of at
5
least 40% in the entity; or
6
(b) for a trust (including a unit trust)--the persons, together with
7
any one or more associates of any of them hold, in the
8
aggregate, beneficial interests in at least 40% of the income
9
or property of the trust.
10
Note:
See also sections 17 (meanings of interest and aggregate interest of a
11
specified percentage in an entity) and 18 (rules relating to determining
12
percentages of interests in entities).
13
agribusiness: an Australian entity or Australian business is an
14
agribusiness in the circumstances prescribed by the regulations.
15
agricultural land means land in Australia that is used, or that could
16
reasonably be used, for a primary production business.
17
Note:
The regulations may provide that land of a specified kind is not
18
agricultural land (see subsection 37(3)).
19
agricultural land corporation has the meaning prescribed by the
20
regulations.
21
agricultural land trust has the meaning prescribed by the
22
regulations.
23
asset includes an interest in an asset.
24
associate has the meaning given by section 6.
25
Australia, when used in a geographical sense, includes the external
26
Territories.
27
Australian business has the meaning given by section 8.
28
Australian corporation means a corporation formed in Australia.
29
Australian entity means an Australian corporation or an Australian
30
unit trust.
31
Australian land means agricultural land, commercial land,
32
residential land or a mining or production tenement.
33
Schedule 1 Main amendments
6
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Australian land corporation has the meaning prescribed by the
1
regulations.
2
Australian land trust has the meaning prescribed by the
3
regulations.
4
Australian subsidiary of a foreign entity means an Australian
5
entity that is a subsidiary of the foreign entity.
6
Note:
For the definition of subsidiary, see section 21.
7
Australian unit trust means a unit trust:
8
(a) the trustee of which holds relevant Australian assets; or
9
(b) the trustee of which carries on an Australian business; or
10
(c) the central management and control of which is in Australia;
11
or
12
(d) in which one or more persons who are ordinarily resident in
13
Australia hold more than 50% of the beneficial interests in
14
the income or property of the unit trust; or
15
(e) that is listed for quotation in the official list of a stock
16
exchange in Australia.
17
change in control has the meaning given by section 54.
18
civil penalty provision has the same meaning as in the Regulatory
19
Powers Act.
20
commercial land means land in Australia or the seabed of the
21
offshore area, other than land:
22
(a) used wholly and exclusively for a primary production
23
business; or
24
(b) on which there is at least one dwelling (except commercial
25
residential premises); or
26
(c) on which the number of dwellings (except commercial
27
residential premises) that could reasonably be built is less
28
than the number prescribed by the regulations for the
29
purposes of subparagraph (a)(ii) of the definition of
30
residential land in this section.
31
commercial residential premises has the same meaning as in the A
32
New Tax System (Goods and Services Tax) Act 1999.
33
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
7
Commonwealth entity has the same meaning as in the Public
1
Governance, Performance and Accountability Act 2013.
2
Commonwealth, State or Territory body includes a Department of
3
State, or an authority or agency, of the Commonwealth, a State or a
4
Territory.
5
consideration has the meaning prescribed by the regulations.
6
constituent document of an entity means any rules or other
7
document constituting or establishing the entity or governing its
8
activities, and includes:
9
(a) for a corporation--the constitution of the corporation; and
10
(b) for a unit trust--the trust deed for the trust.
11
controls:
12
(a) the voting power--has the meaning given by section 23; and
13
(b) an entity or business--has the meaning given by
14
subsections 54(4) and (5).
15
debenture includes:
16
(a) debenture stock, bonds and notes; and
17
(b) any other document evidencing or acknowledging
18
indebtedness of an entity, whether or not constituting a
19
charge on the assets of the entity.
20
decision period has the meaning given by subsection 77(5).
21
determines the policy of a business of exploiting a mining or
22
production tenement has a meaning affected by section 24.
23
development means one or more multi-storey buildings if:
24
(a) the buildings will be, are being or have been built; and
25
(b) the buildings are or were under one development approval;
26
and
27
(c) the number of independent self-contained dwellings (other
28
than townhouses) that the buildings contain or will contain is
29
at least the number prescribed by the regulations.
30
direct interest has the meaning prescribed by the regulations.
31
director includes any person occupying the position of director
32
(however described) of a corporation.
33
Schedule 1 Main amendments
8
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
engage in conduct includes fail or refuse to engage in conduct.
1
enters has a meaning affected by section 25.
2
entity means a corporation or a unit trust.
3
established dwelling means a dwelling (except commercial
4
residential premises) on residential land that is not a new dwelling.
5
exemption certificate means a certificate given under:
6
(a) section 57, 58 or 59; or
7
(b) regulations made for the purposes of section 63.
8
foreign corporation means a foreign corporation to which
9
paragraph 51(xx) of the Constitution applies.
10
foreign entity means an entity that is not an Australian entity.
11
foreign government means an entity (within the ordinary meaning
12
of the term) that is:
13
(a) a body politic of a foreign country; or
14
(b) a body politic of part of a foreign country; or
15
(c) a part of a body politic mentioned in paragraph (a) or (b).
16
foreign government investor has the meaning prescribed by the
17
regulations.
18
foreign person means:
19
(a) an individual not ordinarily resident in Australia; or
20
(b) a corporation in which an individual not ordinarily resident in
21
Australia, a foreign corporation or a foreign government
22
holds a substantial interest; or
23
(c) a corporation in which 2 or more persons, each of whom is an
24
individual not ordinarily resident in Australia, a foreign
25
corporation or a foreign government, hold an aggregate
26
substantial interest; or
27
(d) the trustee of a trust in which an individual not ordinarily
28
resident in Australia, a foreign corporation or a foreign
29
government holds a substantial interest; or
30
(e) the trustee of a trust in which 2 or more persons, each of
31
whom is an individual not ordinarily resident in Australia, a
32
foreign corporation or a foreign government, hold an
33
aggregate substantial interest; or
34
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
9
(f) a foreign government; or
1
(g) any other person, or any other person that meets the
2
conditions, prescribed by the regulations.
3
Note:
In certain circumstances, an associate of a foreign person may be
4
taken to be a foreign person even if the associate is not a foreign
5
person (see subsection 54(7)).
6
general meeting of an entity means:
7
(a) for a corporation--a general meeting of the corporation; or
8
(b) for a unit trust--a general meeting of the unit holders of the
9
trust.
10
holding entity has the meaning given by subsection 21(4).
11
independent director has the meaning given by section 7.
12
interest:
13
(a) in a security--has the meaning given by section 9; and
14
(b) in an asset--has the meaning given by section 10; and
15
(c) in a trust--has the meaning given by section 11; and
16
(d) in Australian land--has the meaning given by section 12; and
17
(e) of a specified percentage in an entity--has the meaning given
18
by section 17.
19
Note:
For other rules relating to interests in a security, asset, trust or
20
Australian land, see sections 13 to 15.
21
interim order means an order made under section 68.
22
just terms has the same meaning as in paragraph 51(xxxi) of the
23
Constitution.
24
land includes:
25
(a) a building (including a new dwelling or an established
26
dwelling) or a part of a building; and
27
(b) subsoil of land.
28
land register means a register kept under a law of the
29
Commonwealth, a State or a Territory in which interests (within
30
the ordinary meaning of the term) in Australian land are registered.
31
lease includes a sublease.
32
Schedule 1 Main amendments
10
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
long term lease means a lease granted by the Commonwealth, a
1
State or a Territory for a term (including any extension or renewal)
2
that is reasonably likely, at the time the lease is granted, to exceed
3
20 years.
4
mining or production tenement means:
5
(a) a right (however described) under a law of the
6
Commonwealth, a State or a Territory to recover minerals
7
(such as coal or ore), oil or gas in Australia or from the
8
seabed or subsoil of the offshore area, other than a right to
9
recover minerals, oil or gas for the purposes of prospecting or
10
exploring for minerals, oil or gas; or
11
(b) a right that preserves a right mentioned in paragraph (a); or
12
(c) a lease under which the lessee has a right mentioned in
13
paragraph (a) or (b); or
14
(d) an interest in a right mentioned in paragraph (a) or (b) or
15
under a lease mentioned in paragraph (c).
16
new dwelling means a dwelling (except commercial residential
17
premises) that will be, is being or has been built on residential land
18
and that:
19
(a) has not been previously sold as a dwelling; and
20
(b) either:
21
(i) has not been previously occupied; or
22
(ii) if the dwelling is contained in a development and the
23
dwelling was sold by the developer of the
24
development--has not been previously occupied for
25
more than 12 months in total.
26
Note:
For when a dwelling is sold, see subsections 15(4) and (5).
27
new dwelling acquisition has the meaning given by
28
subsection 113(4).
29
no objection notification has the meaning given by
30
subsections 74(2) and 75(2).
31
notifiable action has the meaning given by Division 3 of Part 2.
32
officer of an entity includes the following:
33
(a) for a corporation--a director of the corporation;
34
(b) for a unit trust:
35
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
11
(i) the trustee of which is an individual--the trustee; and
1
(ii) the trustee of which is a corporation--a director of the
2
trustee; and
3
(iii) in any case--any other individual involved in the
4
central management and control of the trust;
5
(c) a person who is, or a person in a group of persons who are, in
6
a position to determine the investments or policy of the entity
7
or a trustee of the entity;
8
(d) a person who makes, or participates in making, decisions that
9
affect the whole, or a substantial part of, the business of the
10
entity;
11
(e) a person who has the capacity to affect significantly the
12
financial standing of the entity;
13
(f) a receiver and manager of any part of the business of the
14
entity appointed under a power contained in any instrument;
15
(g) an administrator of the entity;
16
(h) an administrator under a deed of company arrangement
17
executed by the entity;
18
(i) a liquidator of the entity appointed in a voluntary winding up.
19
offshore area means:
20
(a) the exclusive economic zone of Australia; or
21
(b) the continental shelf of Australia.
22
ordinarily resident has a meaning affected by section 5.
23
potential voting power has the meaning given by section 22.
24
primary production business has the same meaning as in the
25
Income Tax Assessment Act 1997.
26
proposes:
27
(a) to acquire an interest in securities, assets or Australian land--
28
has a meaning affected by subsection 16(1); and
29
(b) to enter or terminate an agreement--has a meaning affected
30
by subsection 16(2).
31
protected information has the meaning given by section 120.
32
Regulatory Powers Act means the Regulatory Powers (Standard
33
Provisions) Act 2014.
34
Schedule 1 Main amendments
12
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
relative has the same meaning as in the Income Tax Assessment Act
1
1997.
2
relevant Australian assets means:
3
(a) Australian land, including legal and equitable interests
4
(within the ordinary meaning of the term) in such land; or
5
(b) securities in an Australian entity.
6
relevant entity means any of the following:
7
(a) an Australian entity;
8
(b) a foreign corporation:
9
(i) that holds relevant Australian assets; or
10
(ii) that is a holding corporation of one or more Australian
11
corporations;
12
(c) a holding entity of such a foreign corporation or of an
13
Australian unit trust.
14
Note:
A holding entity mentioned in paragraph (c) may be a foreign
15
corporation of a kind that is not mentioned in paragraph (b).
16
residential land:
17
(a) means land in Australia if:
18
(i) there is at least one dwelling on the land; or
19
(ii) the number of dwellings that could reasonably be built
20
on the land is less than the number prescribed by the
21
regulations; and
22
(b) does not include land:
23
(i) used wholly and exclusively for a primary production
24
business; or
25
(ii) on which the only dwellings are commercial residential
26
premises.
27
residential land acquisition means a notifiable action to acquire an
28
interest in residential land.
29
scheme means:
30
(a) any agreement, understanding, promise or undertaking:
31
(i) whether express or implied; and
32
(ii) whether or not enforceable, or intended to be
33
enforceable, by legal proceedings; and
34
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
13
(b) any scheme, plan, proposal, action, course of action or course
1
of conduct, whether unilateral or otherwise.
2
Secretary means the Secretary of the Department.
3
security means a share in a corporation or a unit in a unit trust.
4
senior officer of an entity means an officer of the entity under any
5
of paragraphs (a) to (e) of the definition of officer in this section,
6
except an independent director of the entity.
7
sensitive business has the meaning given by section 26.
8
separate government entity means an individual, corporation or
9
corporation sole that:
10
(a) is an agency or instrumentality of a foreign country or a part
11
of a foreign country; and
12
(b) is not part of the body politic of a foreign country or of a part
13
of a foreign country.
14
share of a corporation means a share in the share capital of the
15
corporation, and includes:
16
(a) stock into which all or any of the share capital of the
17
corporation has been converted; and
18
(b) except in section 9, an interest in such a share or in such
19
stock.
20
significant action has the meaning given by Division 2 of Part 2.
21
significant agreement with an Australian business is an agreement
22
relating to:
23
(a) the leasing of, the letting on hire of, or the granting of other
24
rights to use, assets of the business; or
25
(b) the participation by a person in the profits or central
26
management and control of the business.
27
subsidiary has the meaning given by subsections 21(1) to (3).
28
substantial interest: a person holds a substantial interest in an
29
entity or trust if:
30
(a) for an entity--the person holds an interest of at least 20% in
31
the entity; or
32
Schedule 1 Main amendments
14
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(b) for a trust (including a unit trust)--the person, together with
1
any one or more associates, holds a beneficial interest in at
2
least 20% of the income or property of the trust.
3
Note 1:
See also sections 17 (meanings of interest and aggregate interest of a
4
specified percentage in an entity) and 18 (rules relating to determining
5
percentages of interests in entities).
6
Note 2:
For when a person acquires a substantial interest in an entity, see
7
section 20.
8
temporary resident means an individual who:
9
(a) holds a temporary visa under the Migration Act 1958 that
10
allows the individual to remain in Australia for a continuous
11
period of more than 12 months (disregarding the amount of
12
that period remaining); or
13
(b) meets the following conditions:
14
(i) the individual is residing in Australia;
15
(ii) the individual has applied for a permanent visa under
16
the Migration Act 1958;
17
(iii) the individual holds a bridging visa under that Act that
18
allows the individual to remain in Australia until the
19
application has been finally determined; or
20
(c) meets the conditions prescribed by the regulations.
21
this Act includes the regulations.
22
threshold test is met has the meaning given by Subdivision B of
23
Division 4 of Part 2.
24
tier 1 infringement notice has the meaning given by
25
subsection 101(1).
26
tier 2 infringement notice has the meaning given by
27
subsection 101(2).
28
total asset value for an entity has the meaning prescribed by the
29
regulations.
30
total issued securities value for an entity has the meaning
31
prescribed by the regulations.
32
voting power has the meaning given by subsection 22(1).
33
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
15
Subdivision B--Some defined terms and rules of interpretation
1
5 Meaning of ordinarily resident
2
(1) An individual who is not an Australian citizen is ordinarily
3
resident in Australia at a particular time if and only if:
4
(a) the individual has actually been in Australia during 200 or
5
more days in the period of 12 months immediately preceding
6
that time; and
7
(b) at that time:
8
(i) the individual is in Australia and the individual's
9
continued presence in Australia is not subject to any
10
limitation as to time imposed by law; or
11
(ii) the individual is not in Australia but, immediately
12
before the individual's most recent departure from
13
Australia, the individual's continued presence in
14
Australia was not subject to any limitation as to time
15
imposed by law.
16
(2) Without limiting paragraph (1)(b), an individual's continued
17
presence in Australia is subject to a limitation as to time imposed
18
by law if the individual is an unlawful non-citizen within the
19
meaning of the Migration Act 1958.
20
6 Meaning of associate
21
(1) Each of the following persons is an associate of a person:
22
(a) any relative of the person;
23
(b) any person with whom the person is acting, or proposes to
24
act, in concert in relation to an action to which this Act may
25
apply;
26
(c) any person with whom the person carries on a business in
27
partnership;
28
(d) any entity of which the person is a senior officer;
29
(e) if the person is an entity:
30
(i) any holding entity of the entity; or
31
(ii) any senior officer of the entity;
32
(f) any entity whose senior officers are accustomed or under an
33
obligation (whether formal or informal) to act in accordance
34
with the directions, instructions or wishes of:
35
Schedule 1 Main amendments
16
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(i) the person; or
1
(ii) if the person is an entity--the senior officers of the
2
person;
3
(g) an entity if the person is accustomed or under an obligation
4
(whether formal or informal) to act in accordance with the
5
directions, instructions or wishes of:
6
(i) the entity; or
7
(ii) the senior officers of the entity;
8
(h) any corporation in which the person holds a substantial
9
interest;
10
(i) if the person is a corporation--a person who holds a
11
substantial interest in the corporation;
12
(j) the trustee of a trust in which the person holds a substantial
13
interest;
14
(k) if the person is the trustee of a trust--a person who holds a
15
substantial interest in the trust;
16
(l) if the person is a foreign government, a separate government
17
entity or a foreign government investor in relation to a
18
foreign country (or a part of a foreign country):
19
(i) any other person that is a foreign government in relation
20
to that country (or any part of that country); or
21
(ii) any other person that is a separate government entity in
22
relation to that country (or any part of that country); or
23
(iii) any other foreign government investor in relation to that
24
country (or any part of that country).
25
Note:
A person may be taken to be an associate under section 79.
26
Additional associates in relation to interests in residential land
27
(2) For an action taken relating to an interest in residential land (within
28
the meaning of any of the paragraphs of subsection 12(1)), each of
29
the following persons is also an associate of a person:
30
(a) an entity that is not listed for quotation in the official list of a
31
stock exchange if a relative of the person:
32
(i) holds a substantial interest in the entity; or
33
(ii) is a senior officer of the entity;
34
(b) if the person is an entity (the first entity)--another entity (the
35
second entity) if:
36
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
17
(i) an individual holds a substantial interest in the first
1
entity or is a senior officer of the first entity; and
2
(ii) a relative of the individual holds a substantial interest in
3
the second entity or is a senior officer of the second
4
entity; and
5
(iii) the first entity and the second entity are not, and are not
6
a subsidiary or trustee of an entity, listed for quotation
7
in the official list of a stock exchange.
8
Persons who are not associates
9
(3) Despite subsections (1) and (2), a person is not an associate of
10
another person merely because:
11
(a) one gives advice to the other, or acts on the other's behalf, in
12
the proper performance of the functions attaching to a
13
professional capacity or a business relationship; or
14
(b) one, a client, gives specific instructions to the other, whose
15
ordinary business includes dealing in financial products
16
(within the meaning of the Corporations Act 2001), to
17
acquire financial products on the client's behalf in the
18
ordinary course of that business; or
19
(c) one had sent, or proposes to send, to the other an offer under
20
a takeover bid (within the meaning of that Act) for securities
21
held by the other; or
22
(d) one has appointed the other, otherwise than for valuable
23
consideration (within the ordinary meaning of the term)
24
given by the other or by an associate of the other, to vote as a
25
proxy or representative; or
26
(e) both of the following apply:
27
(i) one provides independent services as a trustee of a trust
28
to the other who is a beneficiary of the trust;
29
(ii) the trustee is licensed to provide those services under a
30
law of the Commonwealth, a State, a Territory, a
31
foreign country or a part of a foreign country; or
32
(f) one holds a substantial interest in a managed investment
33
scheme (within the meaning of the Corporations Act 2001)
34
and the other is the responsible entity of the scheme; or
35
(g) both are partners of one of the following kinds of
36
partnerships:
37
(i) a partnership of actuaries or accountants;
38
Schedule 1 Main amendments
18
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(ii) a partnership of medical practitioners;
1
(iii) a partnership of patent attorneys;
2
(iv) a partnership of sharebrokers or stockbrokers;
3
(v) a partnership of trade mark attorneys;
4
(vi) a partnership that has as its primary purpose
5
collaborative scientific research, and includes at least
6
one university and one private sector participant
7
(whether or not it also includes government agencies or
8
publicly funded research bodies);
9
(vii) a partnership of architects;
10
(viii) a partnership of pharmaceutical chemists or veterinary
11
surgeons;
12
(ix) a partnership of legal practitioners.
13
7 Meaning of independent director
14
Listed entities
15
(1) A person is an independent director of an entity if:
16
(a) the person is:
17
(i) a director of the entity; or
18
(ii) for a unit trust--a director of a trustee of the entity; and
19
(b) the entity is listed for quotation in the official list of a stock
20
exchange (whether or not in Australia); and
21
(c) the director meets the criteria of that stock exchange for a
22
director to be independent (whether or not the criteria are
23
binding).
24
Note:
If the stock exchange does not have criteria for a director to be
25
independent, a director of an entity listed for quotation in the official
26
list of the stock exchange is not an independent director.
27
Entities whose securities are stapled
28
(2) A person is an independent director of an entity (the first entity) if:
29
(a) the person is a director of the first entity and another entity;
30
and
31
(b) the securities in the first entity can only be transferred
32
together with securities in the other entity; and
33
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
19
(c) the first entity is not listed for quotation in the official list of
1
a stock exchange, but the other entity is (whether or not in
2
Australia); and
3
(d) the director meets the criteria of that stock exchange for a
4
director to be independent (whether or not the criteria are
5
binding).
6
8 Meaning of Australian business
7
(1) An Australian business is a business that is carried on wholly or
8
partly in Australia in anticipation of profit or gain.
9
(2) For the purposes of this Act, a person who has an interest in a
10
mining or production tenement is, as a result of having that
11
interest, taken to carry on a business in Australia of exploiting that
12
tenement in anticipation of profit or gain. The tenement is taken to
13
be an asset of that business.
14
9 Meaning of interest in a security
15
(1) A person holds or acquires an interest in a security if he or she has
16
any legal or equitable interest in that security.
17
Note 1:
For other rules relating to interests in securities, see sections 13 to 15.
18
Note 2:
See also section 19 (tracing of substantial interests in corporations and
19
trusts).
20
(2) Without limiting subsection (1), a person holds or acquires an
21
interest in a security in an entity if:
22
(a) the person is not the registered holder of the security; and
23
(b) the person is entitled to exercise or control the exercise of a
24
right attached to the security (other than because he or she
25
was appointed as a proxy or representative).
26
(3) In determining whether a person holds or acquires an interest in a
27
security, it is immaterial that the interest cannot be related to a
28
particular security.
29
Issued shares in a corporation
30
(4) A person holds or acquires an interest in the issued shares in a
31
corporation if:
32
Schedule 1 Main amendments
20
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(a) all or part of the share capital of the corporation consists of
1
stock; and
2
(b) the person holds an interest in that stock.
3
(5) For the purposes of this Act, the issued shares are taken to have:
4
(a) the same nominal amount as the amount of that stock; and
5
(b) the same rights attached to them as are attached to that stock.
6
10 Meaning of interest in an asset
7
A person holds or acquires an interest in an asset if he or she has
8
any legal or equitable interest in that asset.
9
Note 1:
For other rules relating to interests in assets, see sections 13 to 15.
10
Note 2:
See also section 19 (tracing of substantial interests in corporations and
11
trusts).
12
11 Meaning of interest in a trust
13
A person holds or acquires an interest in a trust if:
14
(a) the person holds or acquires a beneficial interest in the
15
income or property of the trust; or
16
(b) the person holds or acquires an interest in a unit in a unit
17
trust.
18
Note 1:
For other rules relating to interests in trusts, see sections 13 to 15.
19
Note 2:
See also section 19 (tracing of substantial interests in corporations and
20
trusts).
21
12 Meaning of interest in Australian land
22
(1) An interest in Australian land (however described) is:
23
(a) a legal or equitable interest in Australian land, other than:
24
(i) an interest under a lease or licence or in a unit in a unit
25
trust; or
26
(ii) an interest in an agreement giving a right (known as a
27
profit à prendre) to take something off another person's
28
land, or to take something out of the soil of that land; or
29
(iii) an interest in an agreement involving the sharing of
30
profits or income from the use of, or dealings in,
31
Australian land; or
32
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
21
(b) an interest in a security in an entity that owns Australian
1
land, being a security that entitles the holder to a right to
2
occupy a dwelling of a kind known as a flat or home unit
3
situated on the land; or
4
(c) an interest as lessee or licensee in a lease or licence giving
5
rights to occupy Australian land if the term of the lease or
6
licence (including any extension or renewal) is reasonably
7
likely, at the time the interest is acquired, to exceed 5 years;
8
or
9
(d) an interest in an agreement giving a right of a kind mentioned
10
in subparagraph (a)(ii) if the term of the agreement (including
11
any extension or renewal) is reasonably likely, at the time the
12
interest in the agreement is acquired, to exceed 5 years;
13
(e) an interest in an agreement involving the sharing of profits or
14
income from the use of, or dealings in, Australian land if the
15
term of the agreement (including any extension or renewal) is
16
reasonably likely, at the time the interest in the agreement is
17
acquired, to exceed 5 years; or
18
(f) an interest in a share in an Australian land corporation or
19
agricultural land corporation; or
20
(g) an interest in a unit in an Australian land trust or agricultural
21
land trust; or
22
(h) if the trustee of an Australian land trust or agricultural land
23
trust is a corporation--an interest in a share in that
24
corporation.
25
Note 1:
For other rules relating to interests in Australian land, see sections 13
26
to 15.
27
Note 2:
Australian land may be described as "residential land", "agricultural
28
land" or "commercial land", or as "a new dwelling" or "an established
29
dwelling".
30
(2) An interest is an interest in Australian land even if it is the only
31
interest that exists in the land or other thing concerned.
32
(3) A person acquires an interest in Australian land even if:
33
(a) the person has previously acquired an interest in Australian
34
land; or
35
(b) the interest is an increase in the amount of an existing interest
36
of the person in Australian land.
37
Schedule 1 Main amendments
22
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
13 Interests that are remote or subject to restraint etc.
1
A person holds or acquires an interest in a security, asset, trust or
2
Australian land despite:
3
(a) its remoteness; or
4
(b) the manner in which it arose; or
5
(c) the fact that the exercise of a right conferred by the interest
6
is, or is capable of being made, subject to restraint or
7
restriction.
8
14 Interests held or acquired jointly
9
A person holds or acquires an interest in a security, asset, trust or
10
Australian land even if the person holds or acquires the interest
11
jointly with one or more other persons.
12
15 Interests acquired by entering agreements or acquiring options
13
(1) For the purposes of this Act, a person is taken (except as provided
14
by subsections (4) and (5)) to acquire an interest in a security,
15
asset, trust or Australian land if the person:
16
(a) enters an agreement to acquire the interest; or
17
(b) either:
18
(i) for an interest in a security, asset or trust--has a right to
19
acquire such an interest under an option; or
20
(ii) for an interest in Australian land--acquires an option to
21
acquire such an interest; or
22
(c) has a right, other than by reason of having an interest under a
23
trust, to have such an interest transferred to himself or herself
24
or to his or her associate.
25
Note:
For the definition of enters, see section 25.
26
(2) To avoid doubt, a right mentioned in paragraph (1)(b) or (c)
27
includes a right under an instrument or agreement.
28
(3) Subsections (1) and (2) apply whether or not:
29
(a) the right or option is presently exercisable or exercisable in
30
the future; or
31
(b) the agreement, right or option requires the fulfilment of a
32
condition.
33
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
23
Provisions of agreements that are not currently binding
1
(4) Subsection (5) applies for the purposes of the following provisions:
2
(a) Part 4 (notice of notifiable action);
3
(b) Part 5 (offences and civil penalties) to the extent that it
4
relates to Part 4;
5
(c) any other provision of this Act to the extent that it relates to
6
the provisions mentioned in paragraph (a) or (b);
7
(d) the definition of new dwelling in section 4 (including to the
8
extent that the definition affects the definition of established
9
dwelling in that section), except in section 95 (acquisition of
10
interests in established dwellings).
11
(5) If:
12
(a) a person proposes to take an action to acquire or sell an
13
interest in a security, asset, trust or Australian land; and
14
(b) the provisions of the agreement to acquire or sell the interest
15
do not become binding on the person until one or more
16
conditions are met;
17
the person takes the action to acquire or sell the interest, and enters
18
the agreement, only when the provisions become binding.
19
Note:
As a result of this subsection, the person acquires or sells the interest
20
only when the provisions become binding.
21
16 Meaning of proposes to take certain action
22
(1) A person proposes to acquire an interest in securities, assets or
23
Australian land if:
24
(a) the person makes an offer to acquire the interest; or
25
(b) the person makes or publishes a statement (however
26
expressed) that expressly or impliedly invites a holder of an
27
interest in securities, assets or Australian land to offer to
28
dispose of an interest in securities, assets or Australian land;
29
or
30
(c) the person takes part in, or proposes to take part in,
31
negotiations with a view to acquiring an interest in securities,
32
assets or Australian land.
33
(2) A person proposes to enter or terminate an agreement if the person
34
takes part in, or proposes to take part in, negotiations with a view
35
to entering or terminating the agreement.
36
Schedule 1 Main amendments
24
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(3) This section does not limit the meaning of propose.
1
17 Meanings of interest and aggregate interest of a specified
2
percentage in an entity
3
Meaning of interest of a specified percentage in an entity
4
(1) A person holds an interest of a specified percentage in an entity if
5
the person, alone or together with one or more associates of the
6
person:
7
(a) is in a position to control at least that percentage of the voting
8
power or potential voting power in the entity; or
9
(b) holds interests in at least that percentage of the issued
10
securities in the entity; or
11
(c) would hold interests in at least that percentage of the issued
12
securities in the entity if securities in the entity were issued or
13
transferred as the result of the exercise of rights of a kind
14
mentioned in paragraph 15(1)(b) or (c).
15
Note 1:
See also section 18 (rules relating to determining percentages of
16
interests in entities) and the definition of acquire in section 20.
17
Note 2:
A percentage may be specified by referring to:
18
(a) "20%"; or
19
(b) "any percentage"; or
20
(c) a "substantial interest" or a "direct interest"; or
21
(d) a percentage that a person holds in another entity.
22
Meaning of aggregate interest of a specified percentage in an
23
entity
24
(2) Two or more persons (who are not associates of each other) hold
25
an aggregate interest of a specified percentage in an entity if they,
26
together with any one or more associates of any of them:
27
(a) are in a position to control at least that percentage of the
28
voting power or potential voting power in the entity; or
29
(b) hold interests in at least that percentage of the issued
30
securities in the entity; or
31
(c) would hold interests in at least that percentage of the issued
32
securities in the entity if securities in the entity were issued or
33
transferred as the result of the exercise of rights of a kind
34
mentioned in paragraph 15(1)(b) or (c).
35
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
25
Proxies and representatives
1
(3) In determining the percentage of voting power or potential voting
2
power that a person is in a position to control in an entity, disregard
3
any votes that he or she controls as a proxy or representative.
4
18 Rules relating to determining percentages of interests in entities
5
Exercise of future rights
6
(1) Subsection (2) applies if:
7
(a) a person has a right that, if exercised, would result in the
8
person holding an interest in an issued security in the entity;
9
and
10
(b) it cannot be determined at that time (from the right itself or
11
from the circumstances existing at that time) whether the
12
right would be exercised.
13
(2) For the purposes of this Act, in determining the percentage of the
14
interests in the issued securities in the entity that the person holds,
15
or would hold, at a particular time, assume that the right were
16
exercised at that time.
17
Discretionary trusts
18
(3) For the purposes of this Act, if, under the terms of a trust, a trustee
19
has a power or discretion to distribute the income or property of the
20
trust to one or more beneficiaries, each beneficiary is taken to hold
21
a beneficial interest in the maximum percentage of income or
22
property of the trust that the trustee may distribute to that
23
beneficiary.
24
19 Tracing of substantial interests in corporations and trusts
25
(1) This section applies (subject to subsection (3)) if:
26
(a) either:
27
(i) a person holds a substantial interest in a corporation or
28
trust (the higher entity); or
29
(ii) 2 or more persons hold an aggregate substantial interest
30
in a corporation (the higher entity); or
31
(iii) 2 or more persons hold an aggregate substantial interest
32
in a trust (the trustee of which is a higher entity);
33
Schedule 1 Main amendments
26
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
including because of one or more applications of this section;
1
and
2
(b) the higher entity:
3
(i) is in a position to control all or any of the voting power
4
or potential voting power in a corporation (the lower
5
entity); or
6
(ii) holds interests in all or any of the shares in a
7
corporation (the lower entity); or
8
(iii) holds an interest in a trust (the lower entity).
9
(2) For the purposes of this Act:
10
(a) if subparagraph (1)(b)(i) applies--the person or persons are
11
taken to be in a position to control the voting power or
12
potential voting power of the lower entity that the higher
13
entity is in a position to control; or
14
(b) if subparagraph (1)(b)(ii) applies--the person or persons are
15
taken to hold the interests in the shares in the lower entity
16
that the higher entity holds; or
17
(c) if subparagraph (1)(b)(iii) applies--the person or persons are
18
taken to hold the interest in the lower entity that the higher
19
entity holds.
20
(3) This section does not apply for the purpose of:
21
(a) determining under any of the following whether a foreign
22
person acquires a direct interest in an Australian entity or
23
Australian business that is an agribusiness:
24
(i) paragraph 40(2)(a) (meaning of significant action--
25
entities);
26
(ii) paragraph 41(2)(a) (meaning of significant action--
27
businesses);
28
(iii) paragraph 47(2)(a) (meaning of notifiable action--
29
general); or
30
(b) determining under paragraph 47(2)(b) (meaning of notifiable
31
action--general) whether a foreign person acquires a
32
substantial interest in an Australian entity.
33
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
27
20 Meaning of acquire an interest of a specified percentage in an
1
entity
2
(1) A person acquires an interest of a specified percentage in an entity
3
if the person:
4
(a) starts to hold an interest of that percentage in the entity; or
5
(b) would start to hold an interest of that percentage in the entity
6
on the assumption that the person:
7
(i) held interests in securities that are interests that he or
8
she has offered to acquire; or
9
(ii) held rights to votes that might be cast at a general
10
meeting of the entity that are rights that he or she has
11
offered to acquire; or
12
(c) for a person who already holds an interest of that percentage
13
in the entity:
14
(i) becomes in a position to control more of the voting
15
power or potential voting power in the entity; or
16
(ii) starts to hold additional interests in the issued securities
17
in the entity; or
18
(iii) would start to hold additional interests in the issued
19
securities in the entity if securities in the entity were
20
issued or transferred as the result of the exercise of
21
rights of a kind mentioned in paragraph 15(1)(b) or (c).
22
Note 1:
For the definition of general meeting, see section 4.
23
Note 2:
A percentage may be specified by referring to:
24
(a) "20%"; or
25
(b) "any percentage"; or
26
(c) a "substantial interest" or a "direct interest"; or
27
(d) a percentage that a person holds in another entity.
28
(2) For the purposes of subsection (1), a reference to a person offering
29
to acquire interests in securities or rights includes a reference to a
30
person making or publishing a statement (however expressed) that
31
expressly or impliedly invites a holder of interests in securities or
32
rights to offer to dispose of interests in securities or rights.
33
Schedule 1 Main amendments
28
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
21 Meanings of subsidiary and holding entity
1
Meaning of subsidiary
2
(1) An entity (the lower entity) is a subsidiary of another entity (the
3
higher entity) if:
4
(a) the higher entity:
5
(i) is in a position to control more than half the voting
6
power in the lower entity; or
7
(ii) holds more than half the issued securities in the lower
8
entity (disregarding any securities that carry no right to
9
participate beyond a specified amount in a distribution
10
of either profits or capital); or
11
(b) the lower entity is a subsidiary of an entity that is the higher
12
entity's subsidiary (including because of one or more
13
applications of this subsection).
14
Note:
The lower entity need not be the immediate subsidiary of the higher
15
entity under paragraph (1)(a) (see section 23 which provides that a
16
person may control the voting power in an entity directly or indirectly,
17
and section 19 which provides that a person is taken to hold interests
18
in securities that are traced through a chain of corporations or trusts).
19
(2) In determining whether a lower entity is a subsidiary of a higher
20
entity, disregard any securities held or power exercisable by:
21
(a) the higher entity in a fiduciary capacity; or
22
(b) any person as a result of a debenture of the lower entity; or
23
(c) any person as a result of a trust deed for securing the issue of
24
a debenture of the lower entity.
25
(3) In determining whether a lower entity is a subsidiary of a higher
26
entity, any securities held or power exercisable:
27
(a) by any person as a nominee for the higher entity; or
28
(b) by, or by a nominee for, a subsidiary of the higher entity;
29
are taken to be held or exercisable by the higher entity.
30
Meaning of holding entity
31
(4) An entity (the higher entity) is a holding entity of another entity
32
(the lower entity) if the lower entity is a subsidiary of the higher
33
entity.
34
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
29
22 Meanings of voting power and potential voting power
1
Meaning of voting power
2
(1) The voting power in an entity is the maximum number of votes that
3
might be cast at a general meeting of the entity.
4
Note:
For the definition of general meeting, see section 4.
5
Meaning of potential voting power
6
(2) The potential voting power in an entity is the voting power in the
7
entity, on the assumption that the votes that might be cast at a
8
general meeting of the entity included each vote that:
9
(a) because of the exercise of a right might come into existence
10
in the future (whether or not the right is exercisable presently
11
or in the future or on the fulfilment of a condition); and
12
(b) if it came into existence, might be cast at a general meeting
13
of the entity.
14
Note:
Different voting rights might attach to different classes of securities in
15
an entity.
16
Exercise of future rights
17
(3) In determining how much of the potential voting power in an
18
entity a person is in a position to control at a particular time, if:
19
(a) a right exists that, if exercised, would result in the person
20
being in a position to control more of the potential voting
21
power in the entity than the person would be in a position to
22
control if the right were not exercised; and
23
(b) it cannot be determined at that time (whether from the right
24
itself or from the circumstances existing at that time) whether
25
the right would be exercised;
26
assume that the right were exercised at that time.
27
Veto power
28
(4) If a person is in a position to veto any resolution of the board,
29
central management or general meeting of an entity, then for the
30
purposes of this Act (except paragraph 47(2)(b) (meaning of
31
notifiable action) and subsection 54(4) (meaning of control)) the
32
person is taken to be in a position to control 20% of the potential
33
voting power in the entity.
34
Schedule 1 Main amendments
30
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
23 Meaning of controls the voting power
1
A person controls the voting power in an entity if the person
2
controls the power directly or indirectly, including as a result or by
3
means of agreements or practices, whether or not the agreements or
4
practices:
5
(a) have legal or equitable force; or
6
(b) are based on legal or equitable rights.
7
24 Meaning of determines the policy of a business of exploiting a
8
mining or production tenement
9
(1) A person determines the policy of a business of exploiting a
10
mining or production tenement if the person determines questions
11
relating to the disposal of an interest in the tenement.
12
(2) This section does not limit the meaning of determines the policy of
13
a business of exploiting a mining or production tenement.
14
25 Meaning of enters an agreement
15
(1) A person enters an agreement if:
16
(a) the person enters into any formal or informal scheme,
17
including by:
18
(i) creating a trust (whether express or implied); or
19
(ii) entering into a transaction; or
20
(iii) acquiring an interest in a security, asset, trust or
21
Australian land; or
22
(b) the agreement is materially altered or varied.
23
Note 1:
For the definition of scheme, see section 4.
24
Note 2:
A variation of an agreement that increases the percentage that a person
25
holds in an entity is material. A variation to the way the consideration
26
for an acquisition of an interest is worked out is not material.
27
(2) This section does not limit the meaning of enters.
28
26 Meaning of sensitive business
29
(1) A business is a sensitive business if the business meets the
30
conditions specified in the regulations.
31
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
31
(2) Without limiting subsection (1) or subsection 33(3A) of the Acts
1
Interpretation Act 1901, the regulations may prescribe:
2
(a) sensitive businesses generally, or different sensitive
3
businesses for different kinds of foreign persons; and
4
(b) different conditions for different sensitive businesses.
5
27 Regulations to provide in relation to valuing assets
6
The regulations may provide in relation to valuing the assets of an
7
entity, trust or business.
8
28 Acts done by agents
9
An act done or proposed to be done by an agent on behalf of his or
10
her principal is taken to be done or proposed to be done by his or
11
her principal.
12
Division 3--Application of this Act
13
29 Application of this Act to individuals and entities
14
This Act applies to:
15
(a) all individuals, whether or not resident in Australia or
16
Australian citizens; and
17
(b) all corporations, whether or not formed or carrying on
18
business in Australia; and
19
(c) all unit trusts, whether or not Australian unit trusts.
20
30 Extension to external Territories
21
This Act extends to every external Territory.
22
31 Extraterritoriality
23
This Act applies both within and outside Australia.
24
32 Extension to exclusive economic zone and continental shelf
25
This Act extends to a matter relating to the exercise of Australia's
26
sovereign rights in the exclusive economic zone or the continental
27
shelf.
28
Schedule 1 Main amendments
32
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
33 This Act binds the Crown
1
(1) This Act binds the Crown in each of its capacities.
2
(2) This Act does not make the Crown liable to a pecuniary penalty or
3
to be prosecuted for an offence.
4
34 Concurrent operation of State and Territory laws
5
This Act is not intended to exclude or limit the operation of a law
6
of a State or Territory to the extent that it is capable of operating
7
concurrently with this Act.
8
35 General severability
9
Application of this section
10
(1) This section applies in relation to each of the following persons:
11
(a) a foreign person;
12
(b) a corporation;
13
(c) a person applying for an exemption certificate under:
14
(i) section 57 (certificates for new dwellings); or
15
(ii) regulations made for the purposes of section 63;
16
(d) an individual who holds a substantial interest, or who, as one
17
of 2 or more persons, holds an aggregate substantial interest
18
in a corporation or trust.
19
Effect of this Act
20
(2) Without limiting the effect of this Act apart from this section, this
21
Act also has effect as provided by this section.
22
(3) To avoid doubt, no subsection of this section limits the operation of
23
any other subsection of this section.
24
External affairs power
25
(4) This Act has the effect it would have if each reference to a person
26
mentioned in subsection (1) were expressly confined to a person
27
outside Australia.
28
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
33
Corporations power
1
(5) This Act has the effect it would have if each reference to a person
2
mentioned in subsection (1) were expressly confined to a
3
corporation to which paragraph 51(xx) of the Constitution applies.
4
Aliens power
5
(6) This Act has the effect it would have if each reference to a person
6
mentioned in subsection (1) were expressly confined to an alien
7
(within the meaning of paragraph 51(xix) of the Constitution).
8
Trade and commerce power
9
(7) This Act has the effect it would have if each reference to a person
10
mentioned in subsection (1) were expressly confined to a person
11
engaged in:
12
(a) trade or commerce between Australia and places outside
13
Australia; or
14
(b) trade or commerce among the States; or
15
(c) trade or commerce within a Territory, between a State and a
16
Territory or between 2 Territories.
17
Territories and Commonwealth places power
18
(8) This Act has the effect it would have if each reference to a person
19
mentioned in subsection (1) were expressly confined to a person in,
20
or a person taking an action in relation to:
21
(a) a Territory; or
22
(b) a Commonwealth place (within the meaning of the
23
Commonwealth Places (Application of Laws) Act 1970).
24
36 Severability relating to Australian businesses
25
Without limiting the effect of this Act apart from this section, this
26
Act also has the effect it would have if each reference to an
27
Australian business were expressly confined to a reference to an
28
Australian business being carried on by a corporation.
29
Note:
The reference to a corporation in this section is affected by section 35
30
(general severability).
31
Schedule 1 Main amendments
34
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
37 Regulations providing for exemptions
1
(1) The regulations may provide that this Act, or specified provisions
2
of this Act, do not apply in relation to any of, or any combination
3
of, the following:
4
(a) acquisitions of the kind or in the circumstances prescribed by
5
the regulations;
6
(b) interests of the kind or in the circumstances prescribed by the
7
regulations;
8
(c) Australian businesses of the kind or in the circumstances
9
prescribed by the regulations;
10
(d) foreign persons of the kind or in the circumstances prescribed
11
by the regulations.
12
Note:
Provisions may be specified by referring to:
13
(a) a particular provision; or
14
(b) this Act, other than specified provisions.
15
(2) Without limiting subsection (1), the regulations may provide that
16
specified provisions of the Act do not apply to a specified extent.
17
(3) Without limiting subsection (1), the regulations may provide that
18
land of a specified kind is not agricultural land.
19
(4) The regulations may provide that specified foreign persons who
20
take action in relation to interests in Australian land may disregard
21
the fact that the land is agricultural land for all or specified
22
purposes.
23
(5) Regulations providing as mentioned in paragraph (4)(a) do not
24
affect the operation of this Act to the extent that the action is
25
otherwise a significant action or notifiable action.
26
(6) Regulations made for the purposes of this section have effect
27
according to their terms.
28
(7) This Act does not limit the regulations that may be made for the
29
purposes of this section.
30
4 Parts IA to III
31
Repeal the Parts, substitute:
32
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
35
Part 2--Meaning of significant action and
1
notifiable action
2
Division 1--Simplified outline of this Part
3
38 Simplified outline of this Part
4
The concepts of significant action and notifiable action are 2 of
5
the most important concepts in this Act.
6
The Treasurer has powers to make orders and decisions under
7
Part 3 in relation to any significant action taken or proposed to be
8
taken.
9
A foreign person must give the Treasurer a notice before taking a
10
notifiable action. Only some significant actions are notifiable
11
actions.
12
Those concepts are defined in this Part.
13
Division 2--Meaning of significant action
14
39 Simplified outline of this Division
15
Broadly, a significant action is an action to acquire interests in
16
securities, assets or Australian land, or otherwise take action in
17
relation to entities (being corporations and unit trusts) and
18
businesses, that have a connection to Australia. For an action to be
19
a significant action, the action must result in a change in control
20
involving a foreign person or be taken by a foreign person.
21
Generally, the action is only a significant action if the entity,
22
business or land meets the threshold test. A different threshold test
23
applies for certain significant actions taken in relation to
24
agribusinesses.
25
The regulations may also prescribe actions that are significant
26
actions.
27
Schedule 1 Main amendments
36
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
An acquisition of an interest in Australian land by a foreign person
1
that is specified in an exemption certificate under Division 5 is
2
generally not a significant action.
3
Division 6 deals with the treatment of entities whose securities are
4
stapled and entities operating on a unified basis.
5
40 Meaning of significant action--entities
6
(1) An action is a significant action if the conditions in this section are
7
met.
8
First condition--kinds of action
9
(2) The first condition is that the action is any of the following:
10
(a) to acquire a direct interest in an Australian entity that is an
11
agribusiness;
12
(b) to acquire interests in securities in an entity;
13
(c) to issue securities in an entity;
14
(d) to enter an agreement:
15
(i) relating to the affairs of the entity; and
16
(ii) under which one or more senior officers of the entity
17
will be under an obligation to act in accordance with the
18
directions, instructions or wishes of a foreign person
19
who holds a substantial interest in the entity (or of an
20
associate of such a foreign person);
21
(e) to alter a constituent document of the entity as a result of
22
which one or more senior officers of the entity will be under
23
an obligation to act in accordance with the directions,
24
instructions or wishes of a foreign person who holds a
25
substantial interest in the entity (or of an associate of such a
26
foreign person).
27
Note:
An action mentioned in any of paragraphs (2)(b) to (e) may be taken
28
in relation to an Australian entity that is an agribusiness (see
29
section 42).
30
Second condition--threshold
31
(3) The second condition is that the threshold test is met in relation to
32
the entity (see Subdivision B of Division 4).
33
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
37
Third condition--kinds of entities covered
1
(4) The third condition (except if paragraph (2)(a) applies) is that the
2
entity is the following:
3
(a) for an acquisition of interests in shares or an issue of shares:
4
(i) a corporation that is a relevant entity that carries on an
5
Australian business, whether alone or together with one
6
or more other persons; or
7
(ii) the holding entity of such a corporation;
8
(b) for any other action relating to a corporation:
9
(i) an Australian corporation that carries on an Australian
10
business, whether alone or together with one or more
11
other persons; or
12
(ii) the holding entity (other than a foreign corporation) of
13
such a corporation;
14
(c) for an action relating to a unit trust:
15
(i) an Australian unit trust; or
16
(ii) a holding entity of an Australian unit trust.
17
Last condition--action taken by a foreign person
18
(5) If paragraph (2)(a) applies, the last condition is that the action is or
19
is to be taken by a foreign person.
20
Last condition--action results in change in control
21
(6) If any of paragraphs (2)(b) to (e) apply, the last condition is that
22
there would be or has been a change in control of the entity as a
23
result of the action (see Subdivision C of Division 4).
24
41 Meaning of significant action--businesses
25
(1) An action is a significant action if the conditions in this section are
26
met.
27
First condition--kinds of action
28
(2) The first condition is that the action is any of the following:
29
(a) to acquire a direct interest in an Australian business that is an
30
agribusiness;
31
(b) to acquire interests in assets of an Australian business;
32
Schedule 1 Main amendments
38
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(c) to enter or terminate a significant agreement with an
1
Australian business.
2
Note:
An action mentioned in paragraph (2)(b) or (c) may be taken in
3
relation to an Australian business that is an agribusiness (see
4
section 42).
5
Second condition--threshold
6
(3) The second condition is that the threshold test is met in relation to
7
the Australian business (see Subdivision B of Division 4).
8
Third condition--action taken by a foreign person
9
(4) If paragraph (2)(a) applies, the third condition is that the action is
10
or is to be taken by a foreign person.
11
Third condition--action results in change in control
12
(5) If paragraph (2)(b) or (c) applies, the third condition is that there
13
would be or has been a change in control of the business as a result
14
of the action (see Subdivision C of Division 4).
15
42 Action taken in relation to agribusinesses
16
To avoid doubt, a person may take an action under any of
17
paragraphs 40(2)(b) to (e) or 41(2)(b) or (c) in relation to an
18
Australian entity or Australian business that is an agribusiness.
19
43 Meaning of significant action--land
20
An action is a significant action if:
21
(a) the action is for a foreign person to acquire an interest in
22
Australian land; and
23
(b) the threshold test is met in relation to the land (see
24
Subdivision B of Division 4).
25
Note:
Certain acquisitions of land by foreign persons may not be significant
26
actions (see section 45).
27
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
39
44 Meaning of significant action--actions prescribed by the
1
regulations
2
(1) The regulations may provide that a specified action is a significant
3
action (including by providing that a specified action is a
4
significant action if specified conditions are met).
5
(2) Sections 40, 41 and 43 do not limit the actions that may be
6
specified by the regulations.
7
Note:
For example, the regulations may specify an action without requiring
8
the threshold test to be met or a change in control.
9
45 Actions that are not significant actions--exemption certificates
10
(1) Despite this Division, an action is not a significant action if:
11
(a) the action is a foreign person acquiring an interest in a new
12
dwelling that will be, is being or has been built on another
13
interest (the development interest) in Australian land; and
14
(b) the acquisition was from a person who was specified in an
15
exemption certificate in force under section 57; and
16
(c) the development interest was specified in the certificate; and
17
(d) the specified person provided the foreign person with a copy
18
of that certificate before the foreign person acquired the
19
interest; and
20
(e) either:
21
(i) the conditions (if any) specified in the certificate were
22
met; or
23
(ii) the foreign person is not, at the time of the action, aware
24
that one or more of the conditions specified in the
25
certificate have not been met.
26
(2) Despite this Division, an action is not a significant action if:
27
(a) the action is a foreign person acquiring a kind of interest in
28
Australian land; and
29
(b) the foreign person is specified in an exemption certificate in
30
force under section 58 or 59; and
31
(c) the interest is, or is of a kind, specified in the certificate; and
32
(d) the conditions (if any) specified in the certificate were met.
33
Schedule 1 Main amendments
40
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(3) The regulations may provide, in relation to exemption certificates
1
in force under regulations made for the purposes of section 63, that
2
an action of a specified kind is not a significant action.
3
Division 3--Meaning of notifiable action
4
46 Simplified outline of this Division
5
A notifiable action is a proposed action by a foreign person:
6
(a)
to acquire a direct interest in an Australian entity or
7
Australian business that is an agribusiness; or
8
(b)
to acquire a substantial interest in an Australian entity;
9
or
10
(c)
to acquire an interest in Australian land.
11
Generally, the action is only notifiable if the entity, business or
12
land meets the threshold test. A different threshold test applies for
13
certain notifiable actions taken in relation to agribusinesses.
14
Unlike for a significant action, there does not need to be a change
15
in control for actions relating to entities and businesses to be
16
notifiable actions.
17
The regulations may also prescribe actions that are notifiable
18
actions.
19
Actions to acquire interests in Australian land that are specified in
20
an exemption certificate under Division 5 are generally not
21
notifiable actions.
22
Division 6 deals with the treatment of entities whose securities are
23
stapled and entities operating on a unified basis.
24
47 Meaning of notifiable action--general
25
(1) An action is a notifiable action if the conditions in this section are
26
met.
27
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
41
First condition--kinds of action
1
(2) The first condition is that the action is any of the following:
2
(a) to acquire a direct interest in an Australian entity or
3
Australian business that is an agribusiness;
4
(b) to acquire a substantial interest in an Australian entity;
5
(c) to acquire an interest in Australian land.
6
Note:
For the definition of acquire a direct interest or a substantial interest,
7
see section 20.
8
Second condition--threshold
9
(3) The second condition is that the threshold test is met in relation to
10
the entity, business or land (see Subdivision B of Division 4).
11
Third condition--kinds of entities covered
12
(4) If paragraph (2)(a) or (b) applies, the third condition is that the
13
entity is:
14
(a) an Australian corporation that carries on an Australian
15
business, whether alone or together with one or more other
16
persons; or
17
(b) an Australian unit trust; or
18
(c) an Australian entity that is the holding entity of an entity
19
mentioned in paragraph (a) or (b).
20
Last condition--action taken by a foreign person
21
(5) The last condition (whether paragraph (2)(a), (b) or (c) applies) is
22
that the action is or is to be taken by a foreign person.
23
48 Meaning of notifiable action--actions prescribed by the
24
regulations
25
(1) The regulations may provide that a specified action is a notifiable
26
action (including by providing that a specified action is a
27
notifiable action if specified conditions are met).
28
(2) Section 47 does not limit the actions that may be specified by the
29
regulations.
30
Note:
For example, the regulations may specify an action without requiring
31
the threshold test to be met.
32
Schedule 1 Main amendments
42
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
49 Actions that are not notifiable actions--exemption certificates
1
(1) Despite this Division, an action is not a notifiable action if:
2
(a) the action is a foreign person acquiring an interest in
3
Australian land; and
4
(b) the action would not be a significant action under section 45
5
(actions that are not significant actions--exemption
6
certificates).
7
(2) The regulations may provide, in relation to exemption certificates
8
in force under regulations made for the purposes of section 63, that
9
an action of a specified kind is not a notifiable action.
10
Division 4--The threshold test and change in control
11
Subdivision A--Simplified outline of this Division
12
50 Simplified outline of this Division
13
Two important tests in determining whether an action is a
14
significant action are whether the threshold test is met and whether
15
there has been a change in control.
16
For the threshold test to be met, a certain value must be above a
17
threshold prescribed by the regulations. The value depends on the
18
action taken.
19
There is a change in control of an entity or business if the
20
Treasurer is satisfied that one or more foreign persons begin to
21
control the entity or business, or the foreign persons who currently
22
control the entity or business change.
23
One or more persons who hold a substantial interest or an
24
aggregate substantial interest in an entity are taken to control the
25
entity. Also, a person controls the entity if the person is in a
26
position to determine the policy of the entity or business.
27
There are broad powers for the regulations to prescribe thresholds
28
under this Part.
29
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
43
Subdivision B--The threshold test
1
51 The threshold test for entities and businesses
2
The threshold test is met in relation to an entity or business for a
3
significant action mentioned in column 1 of the following table if
4
the value mentioned in column 2 of the table is more than the value
5
prescribed by the regulations.
6
7
When the threshold test is met
Item
Column 1
Significant action
Column 2
Value
1
A person acquiring a direct
interest in an Australian
entity or Australian
business that is an
agribusiness
The total of the following:
(a) the value of the consideration for the
acquisition;
(b) the total value of the other interests held by
the person, alone or together with one or
more associates:
(i) in the entity or business; or
(ii) previously acquired from the entity
or business
2
Acquiring interests in
securities in an entity, or
issuing securities in an
entity
The higher of the following:
(a) the total asset value for the entity;
(b) the total issued securities value for the
entity
3
Entering an agreement
mentioned in
paragraph 40(2)(d) in
relation to an entity, or
altering a constituent
document of an entity as
mentioned in
paragraph 40(2)(e)
The total asset value for the entity
4
Acquiring interests in the
assets of an Australian
business
The value of the consideration for the
acquisition
5
Entering or terminating a
significant agreement with
an Australian business
The total value of the assets of the business
Schedule 1 Main amendments
44
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Note 1:
Total asset value, total issued securities value and consideration are
1
defined by the regulations (see section 4).
2
Note 2:
The regulations may provide in relation to valuing assets of an entity
3
or business (see section 27).
4
52 The threshold test for land
5
Land without threshold value
6
(1) The threshold test is met in relation to land if the land is of a kind
7
that is prescribed by the regulations for the purposes of this
8
subsection.
9
Agricultural land where total value of interests is above threshold
10
value
11
(2) The threshold test is met in relation to land if both of the following
12
apply:
13
(a) the land is agricultural land;
14
(b) the total value of the following is more than the value
15
prescribed for the purposes of this paragraph:
16
(i) all interests in agricultural land held by the foreign
17
person, alone or together with one or more associates;
18
(ii) the consideration for the acquisition of the interest in the
19
land.
20
Note:
Consideration is defined by the regulations (see section 4).
21
Other land where value of interest is above threshold value
22
(3) The threshold test is met in relation to land if both of the following
23
apply:
24
(a) the land is not land prescribed for the purposes of
25
subsection (1) or agricultural land;
26
(b) the value of the interest in the land is more than the value
27
prescribed for the purposes of this paragraph.
28
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
45
53 The threshold test in relation to actions of more than one kind
1
Agreements covering more than one action
2
(1) If an action relating to an entity, business or land is covered by an
3
agreement, the action is a significant action if the threshold test is
4
met in relation to the entity, business or land even if the threshold
5
test is not met for another action covered by the agreement
6
(whether or not relating to the same entity, business or land).
7
Actions of more than one kind
8
(2) If either or both of the following apply:
9
(a) a single action is covered by more than one of the following
10
(because an action is an action of more than one kind):
11
(i) paragraph 40(2)(a), (b), (c), (d) or (e);
12
(ii) paragraph 41(2)(a), (b) or (c);
13
(iii) paragraph 43(a);
14
(iv) a provision of regulations made for the purposes of
15
section 44;
16
(b) a single action relating to land is covered by more than one
17
subsection of section 52 (because the land is land of more
18
than one kind);
19
the threshold test is met in relation to the single action if the test is
20
met in relation to any of the kinds of actions or land (even if the
21
threshold test is not met in relation to any of the other kinds of
22
actions or land).
23
Example 1: An acquisition of an interest in securities in an Australian land
24
corporation is covered by paragraphs 40(2)(b) and 43(a). The
25
threshold test is met if the threshold test is met in relation to the
26
corporation or land held by the corporation.
27
Example 2: An acquisition of an interest in land may be an acquisition of an
28
interest in a mining or production tenement and an interest in
29
agricultural land. The threshold test is met if the threshold test is met
30
in relation to either kind of land.
31
Subdivision C--Change in control
32
54 Change in control
33
(1) For the purposes of determining whether an action is a significant
34
action, there is a change in control of an entity or business if, and
35
Schedule 1 Main amendments
46
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
only if, the Treasurer is satisfied that the action would have, or has
1
had, any of the results mentioned in subsection (2) or (3).
2
Foreign persons begin to control entity or business
3
(2) One or more foreign persons would begin, or have begun, to
4
control the entity or business (whether alone or together with any
5
associates of any of those persons).
6
Change in foreign persons who control the entity or business
7
(3) If one or more foreign persons already control or controlled the
8
entity or business:
9
(a) another foreign person would become, or has become, a
10
person who controls the entity or business; or
11
(b) a person would cease, or has ceased, to be a person who
12
controls the entity or business.
13
Meaning of control
14
(4) A person controls an entity or business if:
15
(a) the person (whether alone or together with one or more
16
associates) is in a position to determine the policy of the
17
entity or business in relation to any matter; or
18
(b) without limiting paragraph (a), in relation to the acquisition
19
of interests in securities in an entity or an issue of securities
20
in an entity:
21
(i) the person holds a substantial interest in the entity; or
22
(ii) the person is one of 2 or more persons who hold an
23
aggregate substantial interest in the entity.
24
Note:
For determining the policy of a business of exploiting a mining or
25
production tenement, see section 24.
26
(5) However, a person mentioned in paragraph (4)(b) does not control
27
the entity if the Treasurer is satisfied that, having regard to all the
28
circumstances, the person together with any one or more associates
29
of that person is not in a position to determine the policy of the
30
entity.
31
(6) Subsection (5) does not require the Treasurer to determine whether
32
a person is in a position to determine the policy of an entity.
33
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
47
References to foreign persons
1
(7) If the Treasurer is satisfied that one or more foreign persons
2
together with any one or more associates control an entity under
3
subsection (4), then, in relation to an action taken relating to the
4
entity, a reference to a foreign person is taken, for the purposes of
5
Part 3 (powers of Treasurer), to include a reference to those
6
associates (even if those associates are not foreign persons).
7
Subdivision D--Regulations
8
55 Regulations
9
(1) Regulations made for the purposes of this Part may prescribe any
10
of, or any combination of, the following:
11
(a) values of nil;
12
(b) different values for different kinds of entities, businesses or
13
land;
14
(c) different values for different kinds of foreign persons;
15
(d) different values for:
16
(i) sensitive businesses generally; or
17
(ii) different sensitive businesses for different foreign
18
persons.
19
Note:
Regulations may also provide for indexation (see subsection 139(2)).
20
(2) The paragraphs and subparagraphs in subsection (1) do not limit:
21
(a) each other; or
22
(b) the regulations that may be made for the purposes of this
23
Part; or
24
(c) subsection 33(3A) of the Acts Interpretation Act 1901.
25
Division 5--Exemption certificates
26
56 Simplified outline of this Division
27
An exemption certificate is a certificate given by the Treasurer that
28
specifies an interest or an interest of a kind that, if acquired by a
29
foreign person, does not give rise to a significant action or a
30
notifiable action. The certificate may also specify conditions that
31
Schedule 1 Main amendments
48
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
are required to be complied with in order for an acquisition of the
1
interest not to be a significant action or notifiable action.
2
A person may apply for an exemption certificate under this
3
Division.
4
The Treasurer must generally make a decision on an application
5
within the period prescribed by the regulations. The regulations
6
may also provide for additional kinds of exemption certificates.
7
57 Exemption certificates for new dwellings
8
(1) A person may apply for a certificate under this section if:
9
(a) the person or any other person proposes to acquire or has
10
acquired an interest in Australian land; and
11
(b) the person or other person proposes to dispose of new
12
dwellings to foreign persons that will be, are being or have
13
been built on that land.
14
Note:
See also Part 6 (fees) and section 135 (manner of notification and
15
application).
16
(2) The Treasurer may give a certificate if the Treasurer is satisfied
17
that the disposal of the new dwellings to foreign persons is not
18
contrary to the national interest.
19
(3) The certificate must specify:
20
(a) the person (who may not yet be incorporated or established)
21
to whom the certificate relates; and
22
(b) the interest to which the certificate relates.
23
Note:
For other things that the certificate may specify, see section 60.
24
58 Exemption certificates for foreign persons
25
(1) A foreign person may apply for a certificate under this section if
26
the foreign person or any other foreign person proposes to acquire
27
one or more kinds of interests in Australian land.
28
Note:
See also Part 6 (fees) and section 135 (manner of notification and
29
application).
30
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
49
(2) The Treasurer may give a certificate if the Treasurer is satisfied
1
that acquisitions of those kinds of interests by that foreign person is
2
not contrary to the national interest.
3
(3) The certificate must specify:
4
(a) the person (who may not yet be incorporated or established)
5
to whom the certificate relates; and
6
(b) the kinds of interests in Australian land to which the
7
certificate relates.
8
Note:
For other things that the certificate may specify, see section 60.
9
59 Exemption certificates for established dwellings
10
(1) A foreign person may apply for a certificate under this section if
11
the foreign person or any other foreign person proposes to acquire
12
an interest in an established dwelling.
13
Note:
See also Part 6 (fees) and section 135 (manner of notification and
14
application).
15
(2) The Treasurer may give a certificate if the Treasurer is satisfied
16
that the acquisition of the interest by that foreign person is not
17
contrary to the national interest.
18
(3) The certificate must specify:
19
(a) the person to whom the certificate relates; and
20
(b) the interest to which the certificate relates.
21
Note:
For other things that the certificate may specify, see section 60.
22
60 Other matters that may be specified by exemption certificates
23
(1) An exemption certificate may specify:
24
(a) one or more conditions; and
25
(b) a period during which the certificate is in force; and
26
(c) any other matter.
27
Note 1:
For offences and civil penalties for failing to comply with a condition,
28
see Part 5.
29
Note 2:
An example of a condition that may be specified in an exemption
30
certificate is a condition requiring that an interest or kind of interest be
31
acquired in land within a specified area.
32
Schedule 1 Main amendments
50
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(2) One exemption certificate may deal with more than one interest or
1
kind of interest.
2
61 Time limit for making decisions on exemption certificates
3
(1) If a person applies for an exemption certificate, the Treasurer must
4
make a decision whether to grant the application before the end of
5
the following period:
6
(a) the period prescribed by the regulations;
7
(b) if the person requests in writing the Treasurer to extend the
8
period--the period as so extended.
9
Note:
For withdrawal of applications, see section 136.
10
Giving exemption certificates
11
(2) If the Treasurer decides to grant the application, the exemption
12
certificate:
13
(a) must be given to the person before the end of 10 days after
14
the decision is made; and
15
(b) may be given to the person at an address (including an
16
electronic address) specified in the application by the person
17
as the address for service of notices relating to the
18
application.
19
Failure to make decision or give exemption certificate
20
(3) The Treasurer is taken to have given, in accordance with
21
subsection (2), an exemption certificate (without specifying
22
conditions) of the kind applied for if the Treasurer does not:
23
(a) make a decision before the end of the period mentioned in
24
subsection (1); or
25
(b) if the Treasurer makes a decision before the end of the
26
period--give the person the exemption certificate in
27
accordance with subsection (2).
28
(4) The exemption certificate is taken to have specified:
29
(a) the person to whom the certificate relates; and
30
(b) the interests or kinds of interests to which the certificate
31
relates; and
32
(c) the period during which the certificate is in force;
33
in accordance with the information specified in the application.
34
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
51
62 Variation or revocation of exemption certificates
1
(1) The Treasurer may vary or revoke an exemption certificate given
2
to a person if the Treasurer is satisfied that the variation or
3
revocation is not contrary to the national interest.
4
(2) A variation may be made on application in writing by the person or
5
on the Treasurer's own initiative.
6
Note:
See also Part 6 (fees) and section 135 (manner of notification and
7
application).
8
(3) Subsection 33(3) of the Acts Interpretation Act 1901 does not
9
apply in relation to a power under this Subdivision to give an
10
exemption certificate.
11
(4) Subsection (1) does not apply to an exemption certificate that is
12
taken to have been given under section 61.
13
63 Exemption certificates provided for by the regulations
14
The regulations may provide for and in relation to additional kinds
15
of certificates given by the Treasurer.
16
Note:
The regulations may provide, in relation to exemption certificates in
17
force under regulations made for the purposes of this section, that an
18
action of a specified kind is not a significant action or a notifiable
19
action (see subsections 45(3) and 49(2)).
20
Division 6--Entities whose securities are stapled and
21
entities operating on a unified basis
22
64 Simplified outline of this Division
23
This Division deals with the treatment of entities whose securities
24
are stapled and entities operating on a unified basis. In certain
25
circumstances, if any of those entities are foreign or not carrying
26
on an Australian business, they are treated as if they were
27
Australian entities or carrying on an Australian business.
28
Consequently, an action taken in relation to those entities may be a
29
significant action or a notifiable action.
30
Schedule 1 Main amendments
52
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
65 Entities whose securities are stapled and entities operating on a
1
unified basis
2
(1) This section applies if:
3
(a) either:
4
(i) the securities in an entity can only be transferred
5
together with securities in one or more other entities; or
6
(ii) an entity has entered an agreement with one or more
7
other entities resulting in the entities being under a legal
8
obligation to operate on a unified basis; and
9
(b) a person takes an action in relation to one of the entities (the
10
target) mentioned in paragraph (a); and
11
(c) the target is not:
12
(i) an Australian entity; or
13
(ii) an entity carrying on an Australian business; or
14
(iii) the holding entity of such an entity;
15
as is required for the action to be a significant action or a
16
notifiable action; and
17
(d) there is at least one other entity mentioned in paragraph (a)
18
that is an entity of a kind mentioned in subparagraph (c)(i),
19
(ii) or (iii).
20
Note:
Entities in a dual listed company arrangement are examples of entities
21
that are under a legal obligation to operate on a unified basis.
22
(2) For the purposes of this Act, the target is taken to be the same kind
23
of entity as the entity mentioned in paragraph (d).
24
Example: A foreign person acquires interests in securities in the target (see
25
paragraph 40(2)(b)). The target's securities are stapled to securities in
26
another entity. The other entity is a relevant entity that carries on an
27
Australian business (see subparagraph 40(4)(a)(i)). The target is taken
28
to be a relevant entity that carries on an Australian business.
29
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
53
Part 3--Powers of Treasurer
1
Division 1--Simplified outline of this Part
2
66 Simplified outline of this Part
3
This Part deals with the powers that the Treasurer has if a
4
significant action is proposed to be taken or has been taken.
5
The Treasurer may be aware of the significant action because a
6
foreign person was required to give a notice under section 81.
7
Alternatively, a foreign person might choose to give a notice
8
despite not being required to do so.
9
If a significant action is proposed to be taken, the Treasurer may
10
prohibit the action. The Treasurer may make an interim order
11
before deciding whether to make an order prohibiting a significant
12
action.
13
If a significant action has been taken, the Treasurer may order that
14
the action be undone (for example, by requiring an acquisition to
15
be disposed of).
16
Instead of making an order, the Treasurer may give a notification
17
(called a no objection notification) stating that the Commonwealth
18
does not object to an action. The Treasurer may impose conditions
19
on a significant action.
20
If the Treasurer is given a notice that a significant action is
21
proposed to be taken, the Treasurer must make a decision under
22
this Part within a certain period (generally, within 30 days of
23
receiving the notice, or within an additional period of up to 90 days
24
from the publication of an interim order). A person must not take
25
the action during this period unless the person is given a no
26
objection notification.
27
In addition, if a foreign person is given a no objection notification
28
relating to a significant action, and the foreign person takes the
29
action in accordance with the notification, the Treasurer is
30
prevented from using the powers under this Part in relation to the
31
Schedule 1 Main amendments
54
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
action. (This limitation does not apply if foreign persons or actions
1
are not specified in the notification.)
2
A person who fails to comply with an order or notification under
3
this Part may commit an offence or be liable to a civil penalty.
4
Under section 113, a fee may be payable in relation to orders or
5
notifications given under this Part.
6
Division 2--Powers of Treasurer
7
Subdivision A--Orders
8
67 Order prohibiting proposed significant actions
9
(1) The Treasurer may make an order under subsection (2) if the
10
Treasurer is satisfied that:
11
(a) a significant action is proposed to be taken; and
12
(b) taking the significant action would be contrary to the national
13
interest.
14
Note:
See also section 77 (time limit on making orders and decisions) and
15
Parts 5 (offences and civil penalties) and 6 (fees).
16
(2) The Treasurer may make an order in accordance with the following
17
table.
18
19
Powers of Treasurer to prohibit proposed significant actions
Item
If the significant action is ...
the Treasurer may make an order
prohibiting ...
1
to acquire a direct interest in an
Australian entity that is an
agribusiness, or an interest in
securities in an entity
the whole or a part of the proposed
acquisition.
2
to issue securities in an entity
the whole or a part of the proposed
issue of the securities.
3
to enter an agreement mentioned in
paragraph 40(2)(d)
entering the proposed agreement.
4
to alter a constituent document of an
entity as mentioned in
paragraph 40(2)(e)
the proposed alteration.
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
55
Powers of Treasurer to prohibit proposed significant actions
Item
If the significant action is ...
the Treasurer may make an order
prohibiting ...
5
to acquire a direct interest in an
Australian business that is an
agribusiness, or an interest in assets
of an Australian business
the whole or a part of the proposed
acquisition.
6
to enter a significant agreement with
an Australian business
entering the proposed agreement.
7
to terminate a significant agreement
with an Australian business
the termination of the existing
agreement.
8
to acquire an interest in Australian
land
the proposed acquisition.
9
to take any significant action
prescribed by regulations made for
the purposes of section 44
any thing prescribed by regulations
made for the purposes of this item.
(3) If the Treasurer makes an order under subsection (2), the Treasurer
1
may also make an order in accordance with the following table.
2
3
Additional orders
Item
If the significant action is ...
the Treasurer may also make an
order ...
1
to acquire a direct interest in an
Australian entity that is an
agribusiness, or an interest in
securities in an entity
directing a specified foreign person
(whether alone or with specified
associate or class of associates) not
to:
(a) increase the proportion of the
total voting power, or the total
potential voting power, in the
entity that the person is in a
position to control (or increase
that proportion beyond a
specified proportion); or
(b) increase the proportion of
interests in issued securities in
the entity that the person holds
(or increase that proportion
beyond a specified proportion).
2
to acquire a direct interest in an
directing a specified foreign person
Schedule 1 Main amendments
56
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Additional orders
Item
If the significant action is ...
the Treasurer may also make an
order ...
Australian business that is an
agribusiness, or an interest in assets
of an Australian business
(whether alone or with specified
associate or class of associates):
(a) not to acquire any interests in
assets of that business; or
(b) to acquire any such interests only
to a specified extent.
3
to acquire an interest in Australian
land
directing a specified foreign person
(whether alone or with specified
associate or class of associates):
(a) not to acquire any interests in the
land or other thing concerned; or
(b) to acquire any such interests only
to a specified extent.
68 Interim orders
1
(1) For the purpose of considering whether to make an order under
2
section 67, the Treasurer may make an order, under this section, of
3
the kind that he or she may make under that section as if that
4
section had applied.
5
Note:
See also section 77 (time limit on making orders and decisions) and
6
Parts 5 (offences and civil penalties) and 6 (fees).
7
(2) An order made under this section must specify the period during
8
which the order has effect. The period must not be more than 90
9
days.
10
Note:
The period does not start until the order is published in the Gazette
11
(see paragraph 72(2)(b)).
12
69 Disposal orders
13
(1) The Treasurer may make an order under subsection (2) if the
14
Treasurer is satisfied that:
15
(a) a significant action has been taken; and
16
(b) the result of the significant action is contrary to the national
17
interest.
18
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
57
Note:
See also sections 70 (limitation on making disposal orders) and 77
1
(time limit on making orders and decisions) and Parts 5 (offences and
2
civil penalties) and 6 (fees).
3
(2) The Treasurer may make an order in accordance with the following
4
table.
5
6
Powers of Treasurer to require disposal of interests
Item
If the significant action was ...
the Treasurer may make an order
directing ...
1
to acquire a direct interest in an
Australian entity that is an
agribusiness, or an interest in
securities in an entity
the person who acquired the interest
to dispose of the interest within a
specified period to one or more
persons who are not associates of
the person.
2
to enter an agreement mentioned in
paragraph 40(2)(d)
specified persons to do within a
specified period, or refrain from
doing, specified acts or acts of a
specified kind.
3
to alter a constituent document of
an entity as mentioned in
paragraph 40(2)(e)
specified persons to do within a
specified period, or refrain from
doing, specified acts or acts of a
specified kind.
4
to acquire a direct interest in an
Australian business that is an
agribusiness, or an interest in assets
of an Australian business
the person who acquired the interest
to dispose of the interest within a
specified period to one or more
persons who are not associates of
the person.
5
to enter a significant agreement
with an Australian business
specified persons to do within a
specified period, or refrain from
doing, specified acts or acts of a
specified kind.
6
to terminate a significant agreement
with an Australian business
specified persons to do within a
specified period, or refrain from
doing, specified acts or acts of a
specified kind.
7
to acquire an interest in Australian
land
the person who acquired the interest
to dispose of that interest within a
specified period to one or more
persons who are not associates of
the person.
Schedule 1 Main amendments
58
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Powers of Treasurer to require disposal of interests
Item
If the significant action was ...
the Treasurer may make an order
directing ...
8
to take any significant action
prescribed by regulations made for
the purposes of section 44
a specified person to do a thing
prescribed by regulations made for
the purposes of this item.
Orders made under table item 7
1
(3) Without limiting item 7 of the table in subsection (2):
2
(a) a foreign person is taken to have acquired an interest in
3
Australian land if the person becomes (with or without the
4
knowledge of the person) a beneficiary in a trust that consists
5
of or includes the interest; and
6
(b) if the trust is a discretionary trust--a reference to the disposal
7
of the interest of the foreign person is a reference to the
8
disposal of any assignable benefits in relation to that trust
9
that may ultimately vest in that foreign person.
10
Orders made under table items 2, 3, 5 or 6
11
(4) An order under any of items 2, 3, 5 or 6 of the table in
12
subsection (2) may be made only for the purpose of:
13
(a) restoring the control of the entity or business as closely as
14
possible to the position in which it was before the significant
15
action was taken; or
16
(b) preventing the occurrence of a change in control of the entity
17
or business.
18
(5) Before the end of a period specified in an order made under any of
19
items 2, 3, 5 or 6 of the table in subsection (2) (or that period as
20
extended under a previous application of this subsection), the
21
Treasurer may, in writing, extend the period. The order has effect
22
as if the period as extended had been specified in the order.
23
70 Limitation on making disposal orders
24
(1) This section applies if:
25
(a) a person is given a no objection notification specifying one or
26
more significant actions; and
27
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
59
(b) for a decision to which paragraph 74(1)(a) or section 75
1
applied--the actions specified in the notification were taken;
2
and
3
(c) in any case, both of the following apply:
4
(i) either the period specified under section 76 in the
5
notification has not ended or the actions were taken
6
before the end of the period specified in the notification;
7
(ii) the foreign persons who took the actions were specified
8
in the notification.
9
(2) The Treasurer may make an order under section 69 (disposal
10
orders) in relation to the actions only if:
11
(a) the person is convicted of an offence against section 87 in
12
relation to a condition included in the notification; or
13
(b) an order is made under section 19B of the Crimes Act 1914 in
14
relation to the person in respect of such an offence; or
15
(c) a civil penalty order is made against the person under the
16
Regulatory Powers Act in relation to a contravention of
17
section 93, 96 or 97 of this Act relating to a condition
18
included in the notification.
19
Note:
The Treasurer may make an order under this Subdivision in relation
20
to:
21
(a) a significant action that is not specified in the notification but is
22
covered by the same agreement that covered the actions
23
mentioned in subsection (1); or
24
(b) a foreign person who is not specified in the notification but who
25
took significant actions covered by the same agreement that
26
covered the actions mentioned in subsection (1).
27
71 Variation and revocation of orders
28
(1) The Treasurer may vary or revoke an order under this Subdivision
29
at any time if:
30
(a) the Treasurer is satisfied that the variation or revocation is
31
not contrary to the national interest; and
32
(b) for a variation:
33
(i) the person consents to the variation; or
34
(ii) the Treasurer is satisfied that the variation does not
35
disadvantage the person.
36
Schedule 1 Main amendments
60
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(2) Subsection 33(3) of the Acts Interpretation Act 1901 does not
1
apply in relation to a power under this Subdivision to make an
2
order.
3
72 Publication and commencement of orders
4
Publication of orders
5
(1) An order made by the Treasurer under this Subdivision must be:
6
(a) in writing; and
7
(b) published in the Gazette within 10 days after it is made.
8
When an order commences
9
(2) An order under this Subdivision commences:
10
(a) for an order under subsection 67(3) (additional orders) or 69
11
(disposal orders)--on the day specified in the order that is at
12
least 30 days after the order is published; and
13
(b) for any other order--on the day the order is published.
14
73 Actions of more than one kind
15
If a single action is covered by more than one of the following
16
(because an action is an action of more than one kind):
17
(a) paragraph 40(2)(a), (b), (c), (d) or (e);
18
(b) paragraph 41(2)(a), (b) or (c);
19
(c) paragraph 43(a);
20
(d) a provision of regulations made for the purposes of
21
section 44;
22
the Treasurer may make any of the orders under this Subdivision
23
that he or she could make in relation to the single action.
24
Subdivision B--Other powers of Treasurer
25
74 No objection notification imposing conditions
26
Application of this section
27
(1) This section applies if:
28
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
61
(a) the Treasurer is satisfied that a significant action is proposed
1
to be taken (whether or not the Treasurer was given a notice
2
relating to the action); or
3
(b) both of the following apply:
4
(i) the Treasurer is satisfied that a significant action has
5
been taken;
6
(ii) the Treasurer was not given a notice relating to the
7
action before the action was taken; or
8
(c) all of the following apply:
9
(i) the Treasurer is satisfied that a significant action has
10
been taken;
11
(ii) the Treasurer was given a notice relating to the action
12
before the action was taken;
13
(iii) the action was taken before the day mentioned in
14
section 82.
15
Note:
See also sections 70 (limitation on making disposal orders), 76
16
(content of no objection notification) and 77 (time limit on making
17
orders and decisions) and Parts 5 (offences and civil penalties) and 6
18
(fees).
19
Imposition of conditions
20
(2) The Treasurer may:
21
(a) decide that the Commonwealth has no objection to the action
22
if one or more of the following conditions were imposed:
23
(i) for paragraph (1)(a)--a condition that the Treasurer is
24
satisfied is necessary to ensure the action, if taken, will
25
not be contrary to the national interest;
26
(ii) for paragraphs (1)(b) and (c)--a condition that the
27
Treasurer is satisfied is necessary to ensure that the
28
action is not contrary to the national interest; and
29
(b) notify the person, in writing (the no objection notification),
30
of the conditions.
31
(3) The no objection notification:
32
(a) must be given before the end of 10 days after the decision is
33
made; and
34
(b) if a notice relating to the action was given--may be given to
35
the person at an address (including an electronic address)
36
Schedule 1 Main amendments
62
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
specified in that notice as the address for service of notices
1
relating to the action.
2
Variation and revocation of conditions
3
(4) The Treasurer may (subject to subsection (6)) vary a no objection
4
notification given to a person by:
5
(a) revoking a condition; or
6
(b) imposing a new condition; or
7
(c) varying an existing condition; or
8
(d) varying the information specified under section 76;
9
if the Treasurer is satisfied that the variation is not contrary to the
10
national interest.
11
(5) The variation may be made on the Treasurer's own initiative.
12
Note:
The variation may also be made on application by the person (see
13
subsection 76(6)).
14
(6) The Treasurer may vary a no objection notification given to a
15
person by imposing a new condition or varying an existing
16
condition only if:
17
(a) the person consents to the new condition or the variation; or
18
(b) the Treasurer is satisfied that the new condition or variation
19
does not disadvantage the person.
20
Statements in notices
21
(7) For the purposes of this section:
22
(a) a notice relating to an action stating that a person has a right
23
(including a right under an option) to acquire interests in
24
securities, assets or Australian land is taken to be a statement
25
that the person proposes to acquire the interests in the
26
securities, assets or land; and
27
(b) a notice relating to an action stating that a person proposes to
28
acquire a right (including a right under an option) to acquire
29
an interest in a security, asset or Australian land is taken to be
30
a statement that the person proposes to exercise that right.
31
Effect of notification on later actions
32
(8) If:
33
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
63
(a) a person gives a notice to the Treasurer relating to more than
1
one significant action proposed to be taken in relation to an
2
entity or business; and
3
(b) the Treasurer is satisfied that the actions would result in a
4
change in control of the entity or business; and
5
(c) the Treasurer gives a no objection notification to the person
6
under this section in relation to the actions; and
7
(d) not all of the actions are taken; and
8
(e) the person gives a later notice to the Treasurer relating to a
9
later action that is proposed to be taken in relation to the
10
entity or business;
11
the giving of the no objection notification does not prevent the
12
Treasurer from determining that there has been or will be a change
13
in control of the entity or business as a result of the later action.
14
75 No objection notification not imposing conditions
15
(1) This section applies if:
16
(a) the Treasurer receives a notice that a person proposes to take
17
an action; and
18
(b) the Treasurer is satisfied that the action is covered by:
19
(i) subsections 40(2) and (3), and whichever of
20
subsection 40(4) or (5) applies (meaning of significant
21
action--entities); or
22
(ii) subsections 41(2) and (3) and subsection 41(4) (if it
23
applies) (meaning of significant action--business); or
24
(iii) section 43 (meaning of significant action--land); or
25
(iv) regulations made for the purposes of section 44
26
(meaning of significant action--actions prescribed by
27
the regulations), disregarding any conditions prescribed
28
by the regulations in relation to a change in control.
29
Note 1:
See also sections 76 (content of no objection notification) and 77 (time
30
limit on making orders and decisions) and Parts 5 (offences and civil
31
penalties) and 6 (fees).
32
Note 2:
This section disregards whether there has been a change in control.
33
(2) The Treasurer may:
34
(a) decide that the Commonwealth has no objection to the action;
35
and
36
Schedule 1 Main amendments
64
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(b) notify the person, in writing (the no objection notification),
1
of the decision.
2
(3) The no objection notification:
3
(a) must be given before the end of 10 days after the decision is
4
made; and
5
(b) may be given to the person at an address (including an
6
electronic address) specified in the notice relating to the
7
action as the address for service of notices relating to the
8
action.
9
Statements in notices
10
(4) For the purposes of this section:
11
(a) a notice relating to an action stating that a person has a right
12
(including a right under an option) to acquire interests in
13
securities, assets or Australian land is taken to be a statement
14
that the person proposes to acquire the interests in the
15
securities, assets or land; and
16
(b) a notice relating to an action stating that a person proposes to
17
acquire a right (including a right under an option) to acquire
18
an interest in a security, asset or Australian land is taken to be
19
a statement that the person proposes to exercise that right.
20
Effect of notifications on later actions
21
(5) A notification given under this section in relation to an action taken
22
relating to an entity or business does not prevent the Treasurer
23
from determining later whether there has been a change in control
24
of the entity or business.
25
76 Content of notification
26
(1) A no objection notification given to a person under section 74 or
27
75 must specify the following:
28
(a) the one or more actions to which the notification relates;
29
(b) the one or more foreign persons to which the notification
30
relates;
31
(c) a requirement that the actions to which the notification
32
relates, if taken, must be taken before the end of a specified
33
period after the day the notification is given.
34
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
65
(2) The no objection notification may specify a foreign person by
1
specifying:
2
(a) a foreign person that:
3
(i) is not yet incorporated; or
4
(ii) is a trustee of a trust that is not yet established; and
5
(b) the way in which the foreign person is to be incorporated or
6
the trust is to be established.
7
(3) A foreign person is taken not to be specified in a no objection
8
notification if:
9
(a) the notification specified the foreign person under
10
subsection (2) before the foreign person was incorporated or
11
the trust was established; and
12
(b) the foreign person is not incorporated or the trust is not
13
established in the way specified in the notification.
14
Note:
The protection under section 70 from disposal orders applies to a
15
foreign person only if the foreign person is specified in a no objection
16
notification.
17
(4) The period mentioned in paragraph (1)(c) is:
18
(a) the period prescribed by the regulations; or
19
(b) if the Treasurer is satisfied that a longer period is not contrary
20
to the national interest--that longer period.
21
(5) A single notification may include a no objection notification under
22
each of sections 74 and 75 in relation to different actions.
23
Variation of no objection notification
24
(6) A person given a no objection notification may apply to the
25
Treasurer for a variation of the notification (including after the
26
action specified in the notification is taken).
27
Note:
See also Part 6 (fees) and section 135 (manner of application).
28
(7) An application for an extension of a period specified in a no
29
objection notification must be made 2 months before the end of the
30
period.
31
(8) The Treasurer may vary a no objection notification if the Treasurer
32
is satisfied that the variation is not contrary to the national interest.
33
Schedule 1 Main amendments
66
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Division 3--Provisions relating to powers of Treasurer
1
77 Time limit on making orders and decisions
2
Application of this section
3
(1) This section applies if the Treasurer receives a notice from a
4
person stating that a significant action (including a significant
5
action that is a notifiable action) is proposed to be taken.
6
Note 1:
If a fee is payable by a person under section 113, the notice is taken
7
not to have been given until the fee has been paid, waived or remitted
8
(see section 114).
9
Note 2:
For withdrawal of notices, see section 136.
10
Time limit on making orders or decisions
11
(2) The Treasurer must not make an order or decision under Division 2
12
relating to the action if:
13
(a) the decision period ends; and
14
(b) the person has not taken the action by the end of the decision
15
period; and
16
(c) either:
17
(i) the Treasurer has not made such an order or decision
18
relating to the action by the end of the decision period;
19
or
20
(ii) if the Treasurer has made such an order or decision by
21
the end of the decision period--the Treasurer has not
22
published the order in the Gazette in accordance with
23
section 72 or given a notification in accordance with
24
subsection 74(3) or 75(3).
25
Note:
For the definition of decision period, see subsection (5) of this
26
section.
27
Time limit on making orders or decisions after interim orders made
28
(3) If the Treasurer makes an interim order relating to the significant
29
action, the Treasurer must not make an order under section 67 or
30
69 or a decision under section 74 or 75 relating to the action if:
31
(a) the Treasurer makes the interim order before the end of the
32
decision period; and
33
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
67
(b) the interim order is published in the Gazette in accordance
1
with section 72; and
2
(c) the period specified in the interim order ends; and
3
(d) by the end of that period, the Treasurer has not:
4
(i) made an order under section 67 or 69 relating to the
5
action and published the order in the Gazette in
6
accordance with section 72; or
7
(ii) made a decision and given a no objection notification
8
relating to the action in accordance with section 74 or
9
75; and
10
(e) the person has not taken the action by the end of that period.
11
Notice given under section 133
12
(4) If a notice is given to a person under section 133 requiring a person
13
to give information or produce a document, a decision period, or a
14
period specified in an interim order, does not include any day in
15
the period:
16
(a) beginning on the day the notice is given; and
17
(b) ending on the day the person gives the information or
18
produces the document in accordance with the notice.
19
Meaning of decision period
20
(5) A decision period is:
21
(a) the period of 30 days after the day the Treasurer receives a
22
notice from a person stating that a significant action
23
(including a significant action that is a notifiable action) is
24
proposed to be taken; or
25
(b) if, before the end of a decision period (including a decision
26
period as extended under this paragraph), the person requests
27
in writing the Treasurer to extend the period--the period as
28
so extended.
29
78 Anti-avoidance
30
(1) This section applies if:
31
(a) one or more persons enter into, begin to carry out or carry out
32
a scheme; and
33
(b) the Treasurer is satisfied that any of the persons who entered
34
into, began to carry out or carried out all or any part of the
35
Schedule 1 Main amendments
68
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
scheme did so for the sole or dominant purpose of avoiding
1
the application of any provision of this Act in relation to one
2
or more persons (whether those persons are the same as the
3
persons mentioned in paragraph (a)); and
4
(c) all or part of the scheme has achieved, or (apart from this
5
section) would achieve, that purpose.
6
Note:
For the definition of scheme, see section 4.
7
(2) The Treasurer may (subject to subsection (3)) make any order or
8
decision under Division 2 that the Treasurer would have been able
9
to make if all or part of the scheme had not achieved that purpose.
10
(3) The Treasurer must not make an order prohibiting a person from
11
doing anything that has already been done by the person before the
12
order is made.
13
79 Persons involved in avoidance taken to be associates
14
(1) The Treasurer may make an order under subsection (2) if:
15
(a) the Treasurer makes an order under section 78
16
(anti-avoidance) in relation to more than one person; and
17
(b) the Treasurer is satisfied that not making an order under
18
subsection (2) is contrary to the national interest.
19
(2) The Treasurer may make an order specifying that some or all of the
20
persons to which the order under section 78 relates are taken to be
21
associates of each other for the purposes of this Act or for specified
22
purposes.
23
(3) An order under subsection (2) must specify the period during
24
which the order is in force.
25
Effect of order
26
(4) An order under subsection (2) has effect according to its terms.
27
Order not a legislative instrument
28
(5) An order under subsection (2) is not a legislative instrument.
29
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
69
Part 4--Notice of notifiable actions and significant
1
actions
2
3
80 Simplified outline of this Part
4
A foreign person who proposes to take a notifiable action must
5
give a notice to the Treasurer before taking the action.
6
If such a notice is given by a foreign person, or if a foreign person
7
chooses to give a notice of a significant action despite not being
8
required to do so, the foreign person must not take the action for a
9
certain period unless the foreign person is given a no objection
10
notification. Generally, the period is 40 days from receiving the
11
notice, or up to 90 days from the publication of an interim order.
12
The person may be prevented from taking the action by an order
13
under Part 3.
14
Unlike for other parts of this Act, if an action is taken by entering
15
an agreement, the action is taken for the purposes of this Part only
16
when the provisions in the agreement become binding on the
17
person (see subsections 15(4) and (5)).
18
A foreign person who fails to comply with this Part may commit an
19
offence or be liable to a civil penalty.
20
Under section 113, a fee is payable in relation to notices given
21
under section 81 and notices that a foreign person chooses to give.
22
81 Compulsory notice of notifiable actions
23
(1) A foreign person who proposes to take a notifiable action must
24
give a notice to the Treasurer before taking the action.
25
(2) If a person takes an action by entering an agreement, the notice
26
must deal with each notifiable action covered by the agreement.
27
Note:
See also subsections 15(4) and (5) (provisions of agreements that are
28
not currently binding), Parts 5 (offences and civil penalties) and 6
29
(fees) and section 135 (manner of notification and application).
30
Schedule 1 Main amendments
70
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
82 Limitation on taking significant actions after notice given
1
(1) This section applies in relation to a foreign person who gives a
2
notice to the Treasurer stating that a significant action (including a
3
significant action that is a notifiable action) is proposed to be
4
taken.
5
Note:
A notice might be given under section 81 or because a foreign person
6
chooses to give a notice despite not being required to do so.
7
(2) The foreign person must not take the action before the earliest of
8
the following:
9
(a) the day that is 10 days after the end of the decision period
10
mentioned in section 77;
11
(b) if an interim order is made--the end of the period specified
12
in the order;
13
(c) the day a no objection notification is given to the person.
14
Note 1:
See also Part 5 (offences and civil penalties).
15
Note 2:
If a person takes an action by entering an agreement, the action is not
16
taken until the agreement is binding on the person (see
17
subsections 15(4) and (5)).
18
Part 5--Offences and civil penalties
19
Division 1--Simplified outline of this Part
20
83 Simplified outline of this Part
21
A person may commit an offence or contravene a civil penalty
22
provision if the person:
23
(a)
fails to give a notice under section 81 before taking a
24
notifiable action; or
25
(b)
takes a significant action before the end of the period in
26
section 82; or
27
(c)
contravenes an order under Part 3; or
28
(d)
contravenes a condition in a no objection notification or
29
an exemption certificate.
30
There are additional civil penalties in relation to residential land.
31
Some of these penalties may be calculated by reference to the
32
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
71
market value of, or consideration for, the acquisition of the interest
1
in the residential land or the capital gain from disposing of the
2
interest.
3
Part 2.4 of the Criminal Code, which among other things extends
4
criminal responsibility to those who attempt to commit an offence
5
or incite another person to commit an offence, applies to offences
6
against this Act. A similar provision for civil penalty provisions is
7
found in section 92 of the Regulatory Powers Act, and applies to
8
civil penalty provisions in this Act.
9
Generally, the penalty for bodies corporate is 5 times the amount
10
for individuals (see section 4B of the Crimes Act 1914 and
11
subsection 82(5) of the Regulatory Powers Act).
12
An officer of a corporation who authorises or permits the
13
corporation to commit an offence or contravene a civil penalty
14
provision may also commit an offence or contravene a civil penalty
15
provision. Similarly, an officer of a corporation may contravene a
16
civil penalty provision by failing to prevent a contravention of the
17
civil penalty provision by the corporation.
18
Civil penalty orders may be sought and infringement notices issued
19
under the Regulatory Powers Act.
20
A charge on Australian land may apply for unpaid penalties under
21
this Act.
22
Division 2--Offences
23
84 Failing to give notice
24
A person commits an offence if:
25
(a) the person is a foreign person; and
26
(b) the person takes an action; and
27
(c) the action is a notifiable action; and
28
(d) a notice is not given under section 81 in relation to the action
29
before the action is taken.
30
Note:
If a person takes an action by entering an agreement, the action is not
31
taken until the agreement is binding on the person (see
32
subsections 15(4) and (5)).
33
Schedule 1 Main amendments
72
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Penalty: Imprisonment for 3 years, or 750 penalty units, or both.
1
85 Taking significant action before end of period
2
A person commits an offence if:
3
(a) the person is a foreign person; and
4
(b) the person gives a notice to the Treasurer stating that a
5
significant action (including a significant action that is a
6
notifiable action) is proposed to be taken; and
7
(c) the person takes the action; and
8
(d) the action is taken before the day mentioned in section 82;
9
and
10
(e) if a change in control is required for the action to be a
11
significant action--there is a change in control as a result of
12
the action.
13
Note 1:
If a person takes an action by entering an agreement, the action is not
14
taken until the agreement is binding on the person (see
15
subsections 15(4) and (5)).
16
Note 2:
A notice might be given under section 81 or because a foreign person
17
chooses to give a notice despite not being required to do so.
18
Penalty: Imprisonment for 3 years, or 750 penalty units, or both.
19
86 Contravening orders under Part 3
20
A person commits an offence if:
21
(a) a person engages in conduct; and
22
(b) the conduct contravenes an order made under Part 3.
23
Penalty: Imprisonment for 3 years, or 750 penalty units, or both.
24
87 Contravening conditions
25
A person commits an offence if:
26
(a) either:
27
(i) the person is given a no objection notification under
28
section 74 (no objection notification imposing
29
conditions) relating to a significant action; or
30
(ii) the person is specified in an exemption certificate; and
31
(b) the notification or certificate includes a condition; and
32
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
73
(c) the person engages in conduct; and
1
(d) the conduct contravenes the condition.
2
Penalty: Imprisonment for 3 years, or 750 penalty units, or both.
3
88 Failing to advertise new dwellings
4
(1) A person (the developer) commits an offence if:
5
(a) the developer is specified in an exemption certificate given
6
under section 57 in relation to an interest in Australian land
7
on which a new dwelling will be, is being or has been built;
8
and
9
(b) the developer disposes of an interest in the dwelling to a
10
foreign person; and
11
(c) the certificate includes a condition requiring the sale of the
12
dwelling to be advertised (however described) in Australia;
13
and
14
(d) at the time the foreign person acquires the interest, the
15
dwelling has not been advertised in accordance with the
16
condition.
17
Penalty: Imprisonment for 3 years, or 750 penalty units, or both.
18
(2) Paragraph (1)(c) does not limit where the sale of a new dwelling
19
may otherwise be advertised.
20
Division 3--Civil penalties
21
Subdivision A--Civil penalties relating to significant actions
22
generally
23
89 Contravening orders under Part 3
24
A person must not contravene an order made under Part 3.
25
Civil penalty:
250 penalty units.
26
Schedule 1 Main amendments
74
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Subdivision B--Civil penalties relating to actions (except in
1
relation to residential land)
2
90 This Subdivision does not apply to actions relating to interests in
3
residential land
4
This Subdivision does not apply in relation to a significant action
5
or notifiable action relating to an interest in residential land.
6
91 Failing to give notice
7
A foreign person who proposes to take a notifiable action must
8
give a notice under section 81 before taking the action.
9
Note:
If a person takes an action by entering an agreement, the action is not
10
taken until the agreement is binding on the person (see
11
subsections 15(4) and (5)).
12
Civil penalty:
250 penalty units.
13
92 Taking significant action before end of period
14
A foreign person who proposes to take a significant action must
15
not take the action before the day mentioned in section 82 if:
16
(a) the person gives a notice to the Treasurer stating that the
17
action is proposed to be taken; and
18
(b) if a change in control is required for the action to be a
19
significant action--the action would result in a change in
20
control.
21
Note 1:
If a person takes an action by entering an agreement, the action is not
22
taken until the agreement is binding on the person (see
23
subsections 15(4) and (5)).
24
Note 2:
A notice might be given under section 81 or because a foreign person
25
chooses to give a notice despite not being required to do so.
26
Civil penalty:
250 penalty units.
27
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
75
93 Contravening conditions
1
Conditions in no objection notifications
2
(1) A person who is given a no objection notification under section 74
3
(no objection notification imposing conditions) must not
4
contravene a condition specified in the notification.
5
Civil penalty:
250 penalty units.
6
Conditions in exemption certificates
7
(2) A person who is specified in an exemption certificate must not
8
contravene a condition specified in the certificate.
9
Civil penalty:
250 penalty units.
10
Subdivision C--Civil penalties relating to residential land
11
94 Acquisition of interests in residential land
12
(1) A foreign person who proposes to take a notifiable action that is a
13
residential land acquisition must not take the action if the foreign
14
person has not given a notice relating to the action under
15
section 81.
16
Note:
If a person takes an action by entering an agreement, the action is not
17
taken until the agreement is binding on the person (see
18
subsections 15(4) and (5)).
19
(2) A foreign person who gives a notice to the Treasurer, stating that a
20
notifiable action that is a residential land acquisition is proposed to
21
be taken, must not take the action before the day mentioned in
22
section 82.
23
(3) A person who contravenes subsection (1) or (2) is liable to a civil
24
penalty.
25
Penalty
26
(4) The maximum penalty for the contravention is the greater of the
27
following:
28
(a) 10% of the consideration for the residential land acquisition;
29
Schedule 1 Main amendments
76
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(b) 10% of the market value of the interest in the relevant
1
residential land.
2
Note:
Consideration is defined by the regulations (see section 4).
3
95 Acquisition of interests in established dwellings
4
Temporary residents
5
(1) A foreign person who is a temporary resident must not hold an
6
interest in more than one established dwelling at the same time.
7
Temporary residents--exceptions
8
(2) Subsection (1) does not apply if:
9
(a) the person is making a genuine attempt to dispose of one or
10
more of the interests; and
11
(b) if those interests were disposed of, the person would not
12
contravene subsection (1); and
13
(c) the person has been holding an interest in more than one
14
established dwelling for less than 6 months.
15
(3) Subsection (1) does not apply in relation to an interest in an
16
established dwelling if, at the time the interest was acquired by the
17
person:
18
(a) the dwelling was a new dwelling; or
19
(b) the person was not prohibited from holding the interest in
20
that dwelling at the same time as holding an interest in
21
another established dwelling.
22
Note:
There is another exception in subsection (5).
23
Other foreign persons
24
(4) A foreign person who is not a temporary resident must not acquire
25
an interest in an established dwelling.
26
General exceptions
27
(5) Subsections (1), (4) and (8) do not apply in relation to an interest if
28
the interest was, or was of a kind, specified in an exemption
29
certificate or a no objection notification.
30
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
77
Civil penalties
1
(6) A person who contravenes subsection (1) or (4) is liable to a civil
2
penalty.
3
(7) The maximum penalty for a contravention of subsection (1) or (4)
4
is the greatest of the following:
5
(a) the amount of the capital gain that was made or would be
6
made on the disposal of the interest mentioned in
7
subsection (8);
8
(b) 25% of the consideration for the acquisition of that interest;
9
(c) 25% of the market value of that interest.
10
Note:
For how to work out the capital gain, see section 98.
11
(8) The interest is:
12
(a) if at the time of determining the maximum penalty the
13
foreign person still holds an interest in more than one
14
established dwelling--the interest relating to the established
15
dwelling or dwellings that were most recently acquired by the
16
person; and
17
(b) otherwise--the interest relating to the established dwelling or
18
dwellings that were most recently disposed of by the person.
19
96 Contravening conditions in relation to residential land
20
Conditions in no objection notifications
21
(1) A person who is given a no objection notification under section 74
22
(no objection notification imposing conditions) relating to a
23
residential land acquisition must not contravene a condition (except
24
a condition mentioned in section 97) specified in the notification.
25
Note:
Examples of conditions that may be included in a no objection
26
notification under section 74 are:
27
(a) a condition requiring a temporary resident to sell an established
28
dwelling when the dwelling ceases to be the temporary resident's
29
principal place of residence; and
30
(b) a condition prohibiting a temporary resident from leasing an
31
established dwelling; and
32
(c) a condition requiring a purchaser of vacant land to begin to build
33
a dwelling before a particular time.
34
Schedule 1 Main amendments
78
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Conditions in exemption certificates
1
(2) A person who is specified in an exemption certificate relating to an
2
interest in residential land must not contravene a condition (other
3
than a condition mentioned in section 97) specified in the
4
certificate.
5
Civil penalty provisions
6
(3) A person who contravenes subsection (1) or (2) is liable to a civil
7
penalty.
8
(4) The maximum penalty for the contravention is the greatest of the
9
following:
10
(a) the amount of the capital gain that was made or would be
11
made on the disposal of the interest in the relevant residential
12
land;
13
(b) 25% of the consideration for the acquisition of that interest;
14
(c) 25% of the market value of that interest.
15
Note:
For how to work out the capital gain, see section 98.
16
97 Persons contravening conditions
17
Conditions in no objection notifications
18
(1) A person who is given a no objection notification under section 74
19
(no objection notification imposing conditions) relating to a
20
residential land acquisition must not contravene a condition
21
specified in the notification requiring:
22
(a) the person to give a notice to the Treasurer when the person
23
acquires or disposes of the interest in the relevant residential
24
land; or
25
(b) the sale of a dwelling on the relevant residential land to be
26
advertised (however described) in Australia.
27
Civil penalty:
250 penalty units.
28
Conditions in exemption certificates
29
(2) A person who is specified in an exemption certificate relating to
30
residential land must not contravene a condition specified in the
31
certificate requiring:
32
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
79
(a) the person to give a notice to the Treasurer when the person
1
acquires or disposes of the interest in the residential land; or
2
(b) the sale of a dwelling on the residential land to be advertised
3
(however described) in Australia.
4
Civil penalty:
250 penalty units.
5
98 Working out capital gains
6
For the purposes of this Subdivision, the amount of the capital gain
7
that was made or would be made on the disposal by a person (the
8
offender) of an interest to another person (the third party) is the
9
higher of the following amounts:
10
(a) if an agreement has been entered into in relation to disposing
11
of the interest to the third party--the difference between:
12
(i) the consideration for acquisition by the third party; and
13
(ii) the amount for which the offender purchased the
14
interest;
15
(b) in any case--the difference between:
16
(i) the market value of the interest; and
17
(ii) the amount for which the offender purchased the
18
interest.
19
Division 4--Miscellaneous
20
Subdivision A--Application of the Regulatory Powers Act
21
99 Civil penalty provisions
22
Enforceable civil penalty provisions
23
(1) Each civil penalty provision of this Act is enforceable under Part 4
24
of the Regulatory Powers Act.
25
Note:
Part 4 of the Regulatory Powers Act allows a civil penalty provision to
26
be enforced by obtaining an order for a person to pay a pecuniary
27
penalty for the contravention of the provision.
28
Schedule 1 Main amendments
80
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Authorised applicant
1
(2) For the purposes of Part 4 of the Regulatory Powers Act, the
2
Treasurer is an authorised applicant in relation to the civil penalty
3
provisions of this Act.
4
Relevant court
5
(3) For the purposes of Part 4 of the Regulatory Powers Act, each of
6
the following courts is a relevant court in relation to the civil
7
penalty provisions of this Act:
8
(a) the Federal Court of Australia;
9
(b) the Federal Circuit Court of Australia;
10
(c) a Supreme Court of a State or Territory.
11
Maximum penalties
12
(4) Subsection 82(5) of the Regulatory Powers Act does not apply in
13
relation to the following civil penalty provisions:
14
(a) section 94 (acquisition of interests in residential land);
15
(b) section 95 (acquisitions of established dwellings);
16
(c) section 96 (contravening conditions relating to residential
17
land);
18
(d) subsection 102(2) (liability of officers of corporations
19
authorising or permitting contraventions);
20
(e) section 103 (civil penalties for officers of corporations failing
21
to prevent contraventions).
22
Note:
Subsections 94(4), 95(7), 96(4), 102(3) and 103(5) of this Act set the
23
maximum penalties instead of subsection 82(5) of the Regulatory
24
Powers Act.
25
Extension to external Territories
26
(5) Part 4 of the Regulatory Powers Act, as it applies in relation to the
27
civil penalty provisions of this Act, extends to every external
28
Territory.
29
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
81
100 Infringement notices
1
Provisions subject to an infringement notice
2
(1) The provisions of Subdivision C of Division 3 (civil penalties
3
relating to residential land) are subject to an infringement notice
4
under Part 5 of the Regulatory Powers Act.
5
Note:
Part 5 of the Regulatory Powers Act creates a framework for using
6
infringement notices in relation to provisions.
7
Infringement officer
8
(2) For the purposes of Part 5 of the Regulatory Powers Act, a person
9
appointed under subsection (3) is an infringement officer in
10
relation to the provisions mentioned in subsection (1).
11
(3) The Secretary may, in writing, appoint a person who holds, or
12
performs the duties of, an APS 6 position, or an equivalent or
13
higher position, within the Department or the Australian Taxation
14
Office.
15
Relevant chief executive
16
(4) For the purposes of Part 5 of the Regulatory Powers Act, the
17
Secretary is the relevant chief executive in relation to the
18
provisions mentioned in subsection (1).
19
(5) Subparagraphs 104(1)(e)(ii) and (iii), and subsection 104(2), of the
20
Regulatory Powers Act do not apply in relation to an infringement
21
notice given in relation to an alleged contravention of:
22
(a) for subparagraphs 104(1)(e)(ii) and (iii) of the Regulatory
23
Powers Act--the following provisions of this Act:
24
(i) section 94 (acquisition of interests in residential land);
25
(ii) section 95 (acquisitions of interests in established
26
dwellings);
27
(iii) section 96 (contravening conditions in relation to
28
residential land); and
29
(b) for subsection 104(2) of the Regulatory Powers Act--the
30
following provisions of this Act:
31
(i) section 94 (acquisition of interests in residential land);
32
(ii) section 95 (acquisitions of interests in established
33
dwellings);
34
Schedule 1 Main amendments
82
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(iii) section 96 (contravening conditions in relation to
1
residential land);
2
(iv) section 97 (persons contravening conditions).
3
(6) The amount to be stated in an infringement notice for the purposes
4
of paragraph 104(1)(f) of the Regulatory Powers Act for the
5
alleged contravention of a civil penalty provision mentioned in
6
subsection (1) of this section is:
7
(a) for a tier 1 infringement notice (see subsection 101(1)):
8
(i) given to an individual--12 penalty units; and
9
(ii) given to a corporation--60 penalty units; and
10
(b) for a tier 2 infringement notice (see subsection 101(2)):
11
(i) given to an individual--60 penalty units; and
12
(ii) given to a corporation--300 penalty units.
13
Extension to external Territories
14
(7) Part 5 of the Regulatory Powers Act, as it applies in relation to the
15
provisions mentioned in subsection (1), extends to every external
16
Territory.
17
101 Meanings of tier 1 infringement notice and tier 2 infringement
18
notice
19
(1) An infringement notice is a tier 1 infringement notice if:
20
(a) the notice relates to an alleged contravention by a person of a
21
civil penalty provision of this Act; and
22
(b) the person notified the Commonwealth of conduct that was
23
the same, or substantially the same, as the conduct
24
constituting the alleged contravention; and
25
(c) the person notified the Commonwealth before an
26
infringement notice was issued in relation to the conduct
27
constituting the alleged contravention.
28
(2) An infringement notice is a tier 2 infringement notice if:
29
(a) the notice relates to an alleged contravention by a person of a
30
civil penalty provision of this Act; and
31
(b) subsection (1) does not apply in relation to the person and the
32
conduct constituting the alleged contravention.
33
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
83
Subdivision B--Liability of officers of corporations
1
102 Liability of officers of corporations authorising or permitting
2
contraventions
3
Offences authorised or permitted by officers
4
(1) A person commits an offence if:
5
(a) the person is an officer of a corporation; and
6
(b) the corporation is convicted of an offence against this Act;
7
and
8
(c) the person authorised or permitted the commission of the
9
offence by the corporation.
10
Note:
An officer may also be liable to an offence as a result of Part 2.4 of the
11
Criminal Code (extensions of criminal responsibility).
12
Contraventions of civil penalty provisions authorised or permitted
13
by officers
14
(2) An officer of a corporation is liable to a civil penalty if:
15
(a) a civil penalty order under the Regulatory Powers Act is
16
made against the corporation in relation to a contravention of
17
a civil penalty provision of this Act; and
18
(b) the officer authorised or permitted the contravention of the
19
civil penalty provision by the corporation.
20
Note:
An officer may also be liable to a civil penalty as a result of section 92
21
of the Regulatory Powers Act (ancillary contravention of civil penalty
22
provisions).
23
Maximum penalty
24
(3) The maximum penalty for a contravention of subsection (1) or (2)
25
is the maximum penalty that would apply if the officer had
26
committed the offence mentioned in paragraph (1)(b) or
27
contravened the civil penalty provision mentioned in
28
paragraph (2)(a).
29
103 Civil penalties for officers of corporations failing to prevent
30
contraventions
31
(1) An officer of a corporation is liable to a civil penalty if:
32
Schedule 1 Main amendments
84
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(a) the corporation contravenes a civil penalty provision of this
1
Act; and
2
(b) the officer knew that, or was reckless or negligent as to
3
whether, the contravention would occur; and
4
(c) the officer was in a position to influence the conduct of the
5
corporation in relation to the contravention; and
6
(d) the officer failed to take all reasonable steps to prevent the
7
contravention.
8
(2) The officer was reckless as to whether the contravention would
9
occur if:
10
(a) the officer was aware of a substantial risk that the
11
contravention would occur; and
12
(b) having regard to the circumstances known to the officer, it
13
was unjustifiable to take the risk.
14
(3) The officer was negligent as to whether the contravention would
15
occur if the officer's conduct involved:
16
(a) such a great falling short of the standard of care that a
17
reasonable person would exercise in the circumstances; and
18
(b) such a high risk that the contravention would occur;
19
that the conduct merits the imposition of a pecuniary penalty.
20
Reasonable steps to prevent contravention
21
(4) Without limiting this section, in determining whether an officer of
22
a corporation failed to take all reasonable steps to prevent a
23
contravention, a court may have regard to all relevant matters,
24
including:
25
(a) what action (if any) the officer took directed towards
26
ensuring the following (to the extent that the action is
27
relevant to the contravention):
28
(i) that the corporation arranges regular professional
29
assessments of the corporation's compliance with civil
30
penalty provisions;
31
(ii) that the corporation implements any appropriate
32
recommendations arising from such an assessment;
33
(iii) that the corporation's employees, agents and contractors
34
have a reasonable knowledge and understanding of the
35
requirements to comply with civil penalty provisions in
36
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
85
so far as those requirements affect the employees,
1
agents or contractors concerned; and
2
(b) what action (if any) the officer took when he or she became
3
aware of the contravention.
4
Maximum penalty
5
(5) The maximum penalty for the contravention of subsection (1) is the
6
maximum penalty that would apply if the officer had contravened
7
the civil penalty provision mentioned in paragraph (1)(a).
8
Subdivision C--Recovering unpaid penalties
9
104 Creation of charge on land
10
(1) This section applies in relation to land if:
11
(a) a court finds that a person has contravened Division 3 of this
12
Part (civil penalties); and
13
(b) a pecuniary penalty is imposed on the person in relation to
14
the contravention; and
15
(c) the person has an interest in Australian land covered by
16
subsection (2) that can be registered on a land register; and
17
(d) either:
18
(i) the contravention relates to the acquisition of the
19
interest in the land; or
20
(ii) the Treasurer makes a declaration under section 105 that
21
this section applies in relation to the land.
22
Note:
Subsection (5) contains an exception to this section (proceeds of crime
23
orders).
24
Kinds of interests covered by this subsection
25
(2) The interest in Australian land is either:
26
(a) an interest under a long term lease; or
27
(b) any other legal or equitable interest (within the ordinary
28
meaning of the term) in Australian land, except:
29
(i) an interest under a lease (except a long term lease); or
30
(ii) an interest under a licence; or
31
(iii) an interest in a mining or production tenement; or
32
(iv) an interest in an easement; or
33
Schedule 1 Main amendments
86
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(v) an interest giving a right (known as a profit à prendre)
1
to take something off another person's land, or to take
2
something out of the soil of that land; or
3
(vi) an interest held on trust for another person; or
4
(vii) an interest of a kind prescribed by the regulations.
5
Creation of charge
6
(3) A charge is created on land to which this section applies to secure
7
the payment of the penalty.
8
(4) The charge is created at the time:
9
(a) if subparagraph (1)(d)(i) applies--the penalty is imposed; or
10
(b) if subparagraph (1)(d)(ii) applies--the declaration comes into
11
force.
12
Exception in relation to proceeds of crime orders
13
(5) This section does not apply if at the time mentioned in
14
subsection (4):
15
(a) a restraining order is in force in relation to the land under
16
Part 2-1 of the Proceeds of Crime Act 2002; or
17
(b) a forfeiture order is in force in relation to the land under
18
Part 2-2 of that Act; or
19
(c) an order (however described) of a kind prescribed by the
20
regulations is in force in relation to the land under a law of
21
the Commonwealth, a State or a Territory.
22
105 Treasurer's declaration relating to charge
23
Contravention that does not relate to acquisitions of interests in
24
land
25
(1) The Treasurer may declare, in writing, that section 104 applies in
26
relation to Australian land in which a person has an interest if:
27
(a) paragraphs 104(1)(a) to (c) apply to the person; and
28
(b) the contravention mentioned in paragraph 104(1)(a) does not
29
relate to the acquisition of the interest in the land; and
30
(c) the Treasurer is satisfied that the declaration is necessary to
31
secure the payment of the penalty mentioned in
32
paragraph 104(1)(b).
33
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
87
Treasurer's declaration--extending land to which charge applies
1
(2) The Treasurer may declare, in writing, that section 104 applies in
2
relation to Australian land (the additional land) in which a person
3
has an interest if:
4
(a) a charge is created under section 104 on other Australian land
5
in which the person has an interest; and
6
(b) subparagraph 104(1)(d)(i) applies in relation to the charge;
7
and
8
(c) the Treasurer is satisfied that the declaration in relation to the
9
additional land is necessary to secure the payment of the
10
penalty mentioned in paragraph 104(1)(b).
11
Content of declaration--generally
12
(3) A declaration under subsection (1) or (2) must specify:
13
(a) the period during which the declaration is in force; and
14
(b) the land to which section 104 applies.
15
Note:
For a person who has more than one interest in Australian land, see
16
subsection (4).
17
Content of declaration under subsection (1)
18
(4) For a declaration under subsection (1), if the person has more than
19
one interest in Australian land, the declaration must specify the
20
land to which section 104 applies. The Treasurer may specify more
21
than one area of Australian land only if the Treasurer is satisfied
22
that specifying each of those areas is necessary to secure the
23
payment of the penalty.
24
Declarations not legislative instruments
25
(5) A declaration under subsection (1) or (2) is not a legislative
26
instrument.
27
106 Effect of charge on land
28
(1) A charge created on land under section 104 has priority over any
29
other interest in the land (even if the interest has been registered on
30
a land register).
31
(2) The charge remains in force until:
32
Schedule 1 Main amendments
88
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(a) all of the following amounts are paid:
1
(i) the penalty mentioned in subsection 104(1);
2
(ii) any costs of the Commonwealth that the person
3
mentioned in that subsection is ordered to pay by a
4
court;
5
(iii) any costs incurred by the Commonwealth in relation to
6
recovering the penalty mentioned in that subsection; or
7
(b) the interest in the land is disposed of under section 109.
8
(3) To avoid doubt, the charge on the land is not affected by any
9
change in ownership of the land.
10
Powers of Treasurer
11
(4) The Treasurer has power, on behalf of the Commonwealth, to do,
12
or authorise the doing of, anything necessary or convenient to
13
obtain the registration of the charge on a land register.
14
(5) The Treasurer's powers under subsection (4) include:
15
(a) executing any instrument required to be executed; or
16
(b) signing any certificate that:
17
(i) states that a charge is created on land under section 104;
18
and
19
(ii) specifies the land on which the charge is created.
20
107 Vesting of interest in land
21
(1) This section applies in relation to a person's interest in Australian
22
land if:
23
(a) a charge is created on the land under section 104; and
24
(b) the following period ends:
25
(i) 3 months since the finding mentioned in
26
subsection 104(1) was made by the court;
27
(ii) any longer period determined in writing by the
28
Treasurer or by the court; and
29
(c) if subparagraph 104(1)(d)(ii) (charge imposed after
30
Treasurer's declaration) applies in relation to the charge:
31
(i) the interest is an estate in fee simple in the land or an
32
interest in a long term lease; and
33
(ii) the person holds the interest alone.
34
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
89
Note:
Subsection (4) contains an exception to this section (proceeds of crime
1
orders).
2
(2) At the end of the period mentioned in paragraph (1)(b):
3
(a) the interest in the Australian land vests in equity in the
4
Commonwealth but does not vest in the Commonwealth at
5
law until the applicable registration requirements have been
6
complied with; and
7
(b) the Treasurer has power, on behalf of the Commonwealth, to
8
do anything necessary or convenient to give notice of, or
9
otherwise protect, the Commonwealth's equitable interest in
10
the Australian land; and
11
(c) the Commonwealth is entitled to be registered on a land
12
register as the owner of that property; and
13
(d) the Treasurer has power, on behalf of the Commonwealth, to
14
do, or authorise the doing of, anything necessary or
15
convenient to obtain the registration of the Commonwealth as
16
the owner.
17
(3) The Treasurer's powers under paragraph (2)(d) include:
18
(a) executing any instrument required to be executed; or
19
(b) signing any certificate that:
20
(i) states that land has vested in the Commonwealth under
21
this section; and
22
(ii) specifies the land that has so vested.
23
Exception in relation to proceeds of crime orders
24
(4) This section does not apply if at the end of the period mentioned in
25
paragraph (1)(b):
26
(a) a restraining order is in force in relation to the land under
27
Part 2-1 of the Proceeds of Crime Act 2002; or
28
(b) a forfeiture order is in force in relation to the land under
29
Part 2-2 of that Act; or
30
(c) an order (however described) of a kind prescribed by the
31
regulations is in force in relation to the land under a law of
32
the Commonwealth, a State or a Territory.
33
Schedule 1 Main amendments
90
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
108 When the Commonwealth can begin dealing with interests in
1
land
2
(1) The Treasurer, and persons acting on the Commonwealth's behalf,
3
can dispose of, or otherwise deal with, a person's interest in
4
Australian land that vests under section 107 only after the later of
5
the following times:
6
(a) if the period provided for lodging an appeal against the
7
finding in relation to the person mentioned in
8
subsection 104(1) has ended without such an appeal having
9
been lodged--the end of that period;
10
(b) if an appeal against the finding in relation to the person has
11
been lodged--the appeal lapses or is finally determined.
12
(2) However, such disposals and dealings may occur earlier with the
13
leave of a court and in accordance with any directions of a court.
14
109 Disposing of interests in land
15
(1) The Treasurer must, on behalf of the Commonwealth, dispose of an
16
interest in a person's (the owner's) land that vests in the
17
Commonwealth under section 107 as soon as practicable after the
18
time mentioned in section 108.
19
(2) The Treasurer may give full and effective title to the land free of
20
all other interests, which are extinguished at the time title is given.
21
Dealing with the proceeds of sale
22
(3) The Treasurer must apply the proceeds of the disposal of the
23
interest in the land against:
24
(a) the amounts mentioned in paragraph 106(2)(a); and
25
(b) any other penalty that is due and payable to the
26
Commonwealth under this Act by the owner; and
27
(c) any costs incurred by the Commonwealth in relation to the
28
disposal.
29
(4) The Treasurer must pay the remainder of the proceeds, if any, to
30
the persons mentioned in subsection (6) in the order in which they
31
appear in that subsection.
32
Note:
Not all of the persons mentioned in subsection (6) may be paid if the
33
proceeds are insufficient.
34
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
91
(5) If the remainder of the proceeds is insufficient to pay:
1
(a) all of the persons mentioned in paragraph (6)(a); or
2
(b) after paying all of the persons mentioned in paragraph (6)(a),
3
all of the persons mentioned in paragraph (6)(b);
4
the Treasurer must pay each person mentioned in that paragraph
5
proportionately.
6
(6) The persons are as follows:
7
(a) a person holding a mortgage, charge or other interest over the
8
land if the mortgage, charge or interest:
9
(i) relates to a debt due by the owner; and
10
(ii) has been registered on a land register;
11
(b) if subparagraph 104(1)(d)(i) applies--a person together with
12
whom the owner holds the interest;
13
(c) the Commonwealth in relation to any other penalty or debt
14
that is due and payable to the Commonwealth by the owner;
15
(d) the owner.
16
(7) Nothing in this section affects the right of the Commonwealth to
17
recover penalties by other means.
18
110 Exemption from stamp duty and other State or Territory taxes
19
and fees
20
(1) No stamp duty or other tax or fee is payable under a law of a State
21
or a Territory in respect of the vesting of an interest in Australian
22
land under section 107, or anything connected with the vesting of
23
the interest, if the Treasurer, in writing:
24
(a) declares that the interest in the land has vested under that
25
section; and
26
(b) specifies the interest in the land.
27
(2) An instrument made under subsection (1) is not a legislative
28
instrument.
29
111 Compensation for acquisition of property
30
(1) If the operation of this Subdivision would result in an acquisition
31
of property from a person otherwise than on just terms, the
32
Commonwealth is liable to pay a reasonable amount of
33
compensation to the person.
34
Schedule 1 Main amendments
92
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Note:
For the definitions of acquisition of property and just terms, see
1
section 4.
2
(2) If the Commonwealth and the person do not agree on the amount
3
of the compensation, the person may institute proceedings in a
4
court of competent jurisdiction for the recovery from the
5
Commonwealth of such reasonable amount of compensation as the
6
court determines.
7
Part 6--Fees
8
9
112 Simplified outline of this Part
10
Fees are payable under this Part to ensure that foreign persons and
11
others who take action regulated by this Act bear the costs relating
12
to the administration of this Act.
13
Fees are payable for:
14
(a)
applying for an exemption certificate or a variation of an
15
exemption certificate; and
16
(b)
giving a notice of a notifiable action; and
17
(c)
giving a notice relating to an action that is not a
18
notifiable action; and
19
(d)
applying for a variation of a no objection notification.
20
The Treasurer is not required to take any action before the fee is
21
paid.
22
A fee is also payable if the Treasurer makes a decision or order
23
under Part 3 relating to a significant action and a person has not
24
notified the Treasurer of the action.
25
The amounts of the fees are found in the Foreign Acquisitions and
26
Takeovers Fees Imposition Act 2015.
27
A fee may be waived or remitted.
28
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
93
113 When fees are payable
1
(1) The person mentioned in column 1 of the following table must pay
2
a fee to the Treasurer in accordance with column 2 of the table.
3
4
When fees are payable
Item
Column 1
This person ...
Column 2
must pay a fee ...
1
a person who applies for an
exemption certificate
(a) when the application is made;
and
(b) for a person who is given an
exemption certificate under
section 57--at the end of each 6
month period covered by
subsection (2).
2
a person who applies for a variation
of an exemption certificate
when the application is made.
3
a person who gives a notice of a
notifiable action under section 81
when the notice is given.
4
a person who gives a notice to the
Treasurer of a proposal to take an
action that is not a notifiable action
when the notice is given.
5
a person:
(a) in relation to whom an order is
made under Subdivision A of
Division 2 of Part 3; or
(b) to whom a no objection
notification is given;
who did not give to the Treasurer a
notice relating to the action specified
in the order or notification
before the end of 30 days after the
order or notification is given.
6
a person who applies under
subsection 76(6) for a variation of a
no objection notification
when the application is made.
Note:
The amounts of the fees are in Part 2 of the Foreign Acquisitions and
5
Takeovers Fees Imposition Act 2015.
6
Schedule 1 Main amendments
94
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
6 monthly fees for developers given exemption certificates under
1
section 57
2
(2) A person (the developer) who is given an exemption certificate
3
under section 57 must pay a fee for a 6 month period if there were
4
one or more new dwelling acquisitions during the period.
5
(3) A 6 month period is:
6
(a) the period of 6 months beginning immediately after the
7
developer is given the certificate; or
8
(b) each subsequent 6 month period.
9
(4) A new dwelling acquisition is an acquisition by a foreign person of
10
an interest in a new dwelling that is covered by the exemption
11
certificate given to the developer.
12
Debts may be recovered by Treasurer
13
(5) A fee payable under this Act that does not relate to an application
14
made or a notice given by the person may be recovered by the
15
Treasurer, on behalf of the Commonwealth, as a debt due to the
16
Commonwealth in a court of competent jurisdiction.
17
114 Requirement for fees to be paid before Treasurer exercises
18
powers
19
If a fee is payable by a person under section 113 for giving a notice
20
or making an application, then the person is taken not to have
21
given the notice or made the application until:
22
(a) the fee has been paid; or
23
(b) the fee has been waived or remitted under section 115.
24
Note:
The notice must also be given in the approved manner (see
25
section 135).
26
115 Waiver and remission of fees
27
The Treasurer may, on behalf of the Commonwealth, waive or
28
remit the whole or a part of a fee that is payable under this Act if
29
the Treasurer is satisfied that it is not contrary to the national
30
interest to waive or remit the fee.
31
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
95
Part 7--Record-keeping and confidentiality of
1
information
2
Division 1--Simplified outline of this Part
3
116 Simplified outline of this Part
4
A person must make and keep records relating to:
5
(a)
significant actions, notifiable actions and actions
6
specified in exemption certificates; and
7
(b)
compliance with conditions in no objection notifications
8
and exemption certificates; and
9
(c)
certain disposals of interests in residential land.
10
The records must be kept for 5 years, except records that relate to
11
conditions which must be kept for 2 years. A person may commit
12
an offence if the person fails to make or keep the records in
13
accordance with Division 2.
14
Information that is obtained for the purposes of this Act (called
15
protected information) may be disclosed only for authorised
16
purposes. A person who obtains, uses or discloses protected
17
information other than as authorised by this Act may commit an
18
offence.
19
Division 2--Record-keeping
20
117 What records must be made and kept
21
(1) A person must make and keep records of every act, transaction,
22
event or circumstance relating to the following:
23
(a) any action taken by the person that is a significant action or
24
notifiable action to the extent that the records are relevant to
25
an order or decision under Part 3;
26
(b) an action taken by the person that is specified in an
27
exemption certificate;
28
(c) whether the person is complying with a condition in a no
29
objection notification or an exemption certificate;
30
Schedule 1 Main amendments
96
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(d) the disposal of an interest in residential land by the person if
1
the acquisition of the interest by the person:
2
(i) was a significant action or notifiable action; or
3
(ii) would have been a significant action or notifiable action
4
if the action had not been specified in an exemption
5
certificate.
6
(2) The records must be:
7
(a) in English, or readily accessible and easily convertible into
8
English; and
9
(b) such as to enable the acts, transactions, events or
10
circumstances mentioned in subsection (1) to be readily
11
ascertained.
12
118 Making and keeping records
13
Records required by section 117 must be kept by a person until the
14
following time:
15
(a) for paragraphs 117(1)(a) and (b)--5 years after the action is
16
taken by the person;
17
(b) for paragraph 117(1)(c)--2 years after the condition ceases to
18
apply to the person;
19
(c) for paragraph 117(1)(d)--5 years after the interest is
20
disposed of by the person.
21
119 Offence for failing to make and keep records
22
(1) A person commits an offence if:
23
(a) the person is required to make and keep a record under this
24
Division; and
25
(b) the person does not make or keep the record in accordance
26
with this Division; and
27
(c) the Treasurer has not notified the person that the person does
28
not need to make or keep the record; and
29
(d) the person is not a corporation that has been finally dissolved.
30
Penalty: 30 penalty units.
31
(2) Subsection (1) is an offence of strict liability.
32
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
97
Division 3--Confidentiality of information
1
120 Meaning of protected information
2
(1) Information is protected information if the information is obtained
3
under, in accordance with or for the purposes of this Act, except:
4
(a) information specified in an exemption certificate given
5
under:
6
(i) section 57 (exemption certificates for new dwellings);
7
or
8
(ii) regulations made for the purposes of section 63; or
9
(b) subject to subsection (2), information that is:
10
(i) obtained by a person appointed to a position in the
11
Australian Taxation Office, or a person engaged under
12
the Public Service Act 1999 who is employed in the
13
Australian Taxation Office; and
14
(ii) obtained under, in accordance with or for the purposes
15
of this Act as a result of a delegation or subdelegation
16
under section 137, or a request under subsection 138(4).
17
Note:
Information mentioned in paragraph (b) is protected under
18
Division 355 in Schedule 1 to the Taxation Administration Act 1953.
19
(2) If:
20
(a) information is mentioned in paragraph (1)(b); and
21
(b) the information is disclosed under Subdivision 355-B in
22
Schedule 1 to the Taxation Administration Act 1953; and
23
(c) the disclosure is made to the Secretary or a person appointed
24
or engaged under the Public Service Act 1999 who is
25
employed in the Department;
26
the information mentioned in paragraph (1)(b) is protected
27
information in relation to further uses, disclosures or records made
28
of the information that arise from the disclosure mentioned in
29
paragraph (b) of this subsection.
30
121 Authorisation of disclosures etc. of protected information for the
31
purposes of this Act
32
(1)
A person may make a record of, disclose or otherwise use
33
protected information if:
34
Schedule 1 Main amendments
98
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(a)
the person makes the record, or discloses or uses the
1
information, in performing the person's functions or duties,
2
or exercising the person's powers, under this Act; and
3
(b)
in relation to a disclosure--the information is disclosed to a
4
person who is:
5
(i) a Minister, an officer or an employee of the
6
Commonwealth, a State, the Australian Capital
7
Territory or the Northern Territory; or
8
(ii) an officer or employee of a Commonwealth, State or
9
Territory body; or
10
(iii) a person appointed by the Commonwealth for the
11
purposes of this Act.
12
(2)
A person may make a record of, disclose or otherwise use
13
protected information if:
14
(a)
the person obtains the information under subsection (1) or
15
this subsection; and
16
(b)
the person makes the record of, discloses or otherwise uses
17
the information for the purposes for which the information
18
was disclosed to the person; and
19
(c)
in relation to a disclosure by the person--the information is
20
disclosed to a person who is:
21
(i) a Minister, an officer or an employee of the
22
Commonwealth, a State, the Australian Capital
23
Territory or the Northern Territory; or
24
(ii) an officer or employee of a Commonwealth, State or
25
Territory body; or
26
(iii) a person appointed by the Commonwealth for the
27
purposes of this Act.
28
122 Authorisation of disclosures to Commonwealth Ministers and
29
Commonwealth entities
30
Disclosures for the purposes of Acts
31
(1) A person may disclose protected information to the Minister
32
administering any of the following Acts, or the accountable
33
authority of a Commonwealth entity that deals with the
34
administration of any of the following Acts, for the purposes of
35
administering that Act:
36
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
99
(a) the Airports Act 1996;
1
(b) the Australian Crime Commission Act 2002;
2
(c) the Australian Prudential Regulation Authority Act 1998;
3
(d) the Australian Securities and Investments Commission Act
4
2001;
5
(e) the Australian Security Intelligence Organisation Act 1979;
6
(f) the Banking Act 1959;
7
(g) the Corporations Act 2001;
8
(h) the Financial Sector (Shareholdings) Act 1998;
9
(i) the Industry Research and Development Act 1986;
10
(j) the Inspector-General of Intelligence and Security Act 1986;
11
(k) the Insurance Acquisitions and Takeovers Act 1991;
12
(l) the Intelligence Services Act 2001;
13
(m) the Migration Act 1958;
14
(n) the Proceeds of Crime Act 2002;
15
(o) the Qantas Sale Act 1992;
16
(p) a taxation law (within the meaning of section 995-1 of the
17
Income Tax Assessment Act 1997);
18
(q) the Telstra Corporation Act 1991;
19
(r) any other law prescribed by the regulations.
20
Disclosures for the purposes of Ministerial responsibilities
21
(2) A person may disclose protected information to a Minister
22
responsible for any of the following for the purposes of enabling
23
the Minister to discharge that responsibility:
24
(a) agriculture;
25
(b) industry policy;
26
(c) investment promotion;
27
(d) taxation policy;
28
(e) foreign investment in Australia.
29
(3) A person may disclose protected information to the Secretary of a
30
Department administered by a Minister responsible for any of the
31
following for the purposes of assisting the Minister to discharge
32
that responsibility:
33
(a) agriculture;
34
(b) industry policy;
35
Schedule 1 Main amendments
100
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(c) investment promotion;
1
(d) taxation policy;
2
(e) foreign investment in Australia.
3
123 Authorisation of disclosures relating to law enforcement
4
A person may disclose protected information to an enforcement
5
body (within the meaning of the Privacy Act 1988) if the person
6
reasonably believes the disclosure of the information is reasonably
7
necessary for one or more enforcement related activities (within
8
the meaning of that Act) conducted by or on behalf of the
9
enforcement body.
10
124 Authorisation of disclosures of periodic aggregate information
11
A person may disclose protected information if the information:
12
(a) specifies the matters prescribed by the regulations for the
13
purposes of reporting on the administration of this Act; and
14
(b) does not identify, and is not reasonably capable of being used
15
to identify, a person.
16
125 Authorisation of disclosures of information in the public domain
17
A person may disclose protected information if the information is,
18
at the time of the disclosure, already in the public domain (except
19
as a result of a contravention of this Division).
20
126 Authorisation of disclosures where consent or to person who
21
gave information or related entity
22
Person to whom information relates consents
23
(1)
A person may make a record of, or disclose or otherwise use,
24
protected information if the person to whom the information relates
25
gives written consent.
26
Person who provided information
27
(2) A person may disclose protected information if the disclosure is to:
28
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
101
(a) the person, or an agent of the person, who provided the
1
information under, in accordance with or for the purposes of
2
this Act; or
3
(b) an entity that is a member of the same wholly-owned group
4
(within the meaning of the Income Tax Assessment Act 1997)
5
as the person mentioned in paragraph (a).
6
127 Authorisation to use information for purposes of proceedings
7
(1) A person who obtains protected information may disclose the
8
information to a court or tribunal, or in accordance with an order of
9
a court or tribunal, (whether within or outside Australia) for the
10
purposes of proceedings if:
11
(a) the Commonwealth is a party to the proceedings; and
12
(b) the Treasurer is satisfied that it is not contrary to the national
13
interest.
14
Note:
A person must not be required to provide information to a court or
15
tribunal (see section 130).
16
(2) A person who obtains protected information under, or in
17
accordance with, subsection (1) may make a record of, or disclose
18
or otherwise use, the information for the purposes for which the
19
information was disclosed under that subsection.
20
128 Offence relating to protected information
21
A person commits an offence if:
22
(a) the person obtains information; and
23
(b) the information is protected information; and
24
(c) the person makes a record of, discloses or otherwise uses the
25
information; and
26
(d) the record, disclosure or use is not authorised by this Part.
27
Note:
For an exception for use of information in good faith, see section 129.
28
Penalty: Imprisonment for 2 years or 120 penalty units, or both.
29
129 Exception for use of information in good faith
30
Section 128 does not apply if the person makes a record of,
31
discloses or otherwise uses protected information in good faith:
32
Schedule 1 Main amendments
102
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(a) in performing, or purportedly performing, his or her
1
functions or duties under this Act; or
2
(b) in exercising, or purportedly exercising, his or her powers
3
under this Act.
4
Note:
A defendant bears an evidential burden in relation to the matters in
5
this section (see subsection 13.3(3) of the Criminal Code).
6
130 No requirement to provide information
7
A person (whether within or outside Australia) must not, except for
8
the purposes of this Act, be required:
9
(a) to produce any document in his or her possession; or
10
(b) to disclose any matter or thing of which he or she had notice;
11
to a court, tribunal, authority or person having power to require the
12
production of documents or the answering of questions.
13
Part 8--Miscellaneous
14
15
131 Simplified outline of this Part
16
This Part contains a number of miscellaneous provisions including
17
the following:
18
(a)
the power of certain courts to preserve interests, and
19
enforce orders and conditions;
20
(b)
the power of the Treasurer to require additional
21
information;
22
(c)
the power of the Treasurer and the Secretary to delegate
23
his or her powers under this Act;
24
(d)
a provision clarifying that a failure to comply with this
25
Act does not invalidate an action;
26
(e)
the requirement for applications and notices to be given
27
in a manner approved by the Secretary;
28
(f)
a regulation-making power.
29
132 Powers of courts to enforce Treasurer's orders
30
(1) If a person (the offender) has committed an offence or contravened
31
a civil penalty provision in Part 5, the Federal Court of Australia,
32
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
103
the Federal Circuit Court of Australia or the Supreme Court of a
1
State or Territory may, on application by the Treasurer, make any
2
order it thinks fit:
3
(a) if the contravention was failing to give a notice under
4
section 81, or taking an action before the day mentioned in
5
section 82, in relation to an acquisition of an interest in
6
Australian land--to preserve the interest; or
7
(b) if the contravention was of an order made under Part 3--to
8
achieve the purpose for which the order was made; or
9
(c) if the contravention was of a condition of a no objection
10
notification or an exemption certificate--to achieve the
11
purpose for which the condition was imposed by the
12
Treasurer.
13
(2) To avoid doubt, the court may make an order:
14
(a) whether or not the offender has been convicted of an offence,
15
or a civil penalty order has been made against the offender, in
16
relation to the contravention; and
17
(b) whether or not the contravention still continues; and
18
(c) whether or not other proceedings relating to the
19
contravention have been or are to be instituted.
20
Kinds of orders court may make
21
(3) Without limiting subsection (1), the court may make any of the
22
following orders.
23
24
Kinds of orders court may make
Item
In relation to ...
the court may make an order ...
1
a change of control of
an Australian entity
or Australian
business or the
acquisition of an
interest in securities
in, or in assets of, an
Australian entity
(a) restraining the exercise of any rights attached to
securities in, or assets of, the entity or business
that are held by the offender; or
(b) prohibiting or deferring the payment of any
sums due to the offender in respect of such
securities or assets; or
(c) directing the disposal of such securities or
assets; or
(d) that any exercise of rights attached to such
securities or assets be disregarded; or
(e) prohibiting a person from acting as a senior
Schedule 1 Main amendments
104
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Kinds of orders court may make
Item
In relation to ...
the court may make an order ...
officer of the entity or from being involved in
the central management and control of the entity
or business; or
(f) directing the entity to make such alterations of
any of its constituent documents as are specified
in the order.
2
a change in the
control of a foreign
entity or the
acquisition of an
interest in securities
in, or in assets of, a
foreign entity
(a) restraining the exercise of any rights attached to
securities held by the foreign entity in an
Australian subsidiary; or
(b) prohibiting or deferring the payment of any
sums due to the foreign entity in respect of
securities held by it in an Australian subsidiary;
or
(c) directing the disposal of securities in, or assets
of, an Australian subsidiary of the foreign
entity; or
(d) directing the disposal of assets of the foreign
entity that consist of assets of an Australian
business carried on by the foreign entity
(whether alone or together with one or more
other persons) or prohibiting or deferring the
payment of any sums due to the foreign entity in
respect of any such assets; or
(e) that any exercise of rights attached to securities
held by the foreign entity in an Australian
subsidiary be disregarded; or
(f) that any exercise of rights attached to assets of
the foreign entity of a kind mentioned in
paragraph (d) be disregarded; or
(g) prohibiting a person from acting as a senior
officer of, or from being concerned in the
central management and control of, an
Australian subsidiary of the foreign entity; or
(h) directing an Australian subsidiary of the foreign
entity to make such alterations of any of its
constituent documents as are specified in the
order.
3
the acquisition of an
interest in Australian
land
(a) restraining the exercise of any rights attached to
any interest held by the offender in the land or
other thing concerned; or
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
105
Kinds of orders court may make
Item
In relation to ...
the court may make an order ...
(b) prohibiting or deferring the payment of any
sums due to the offender in respect of any such
interest held by the offender; or
(c) directing the disposal of any such interest held
by the offender; or
(d) that any exercise of rights attached to any such
interest held by the offender be disregarded.
4
any significant action
prescribed by
regulations made for
the purposes of
section 44
of a kind prescribed by regulations made for the
purposes of this item.
Additional powers
1
(4) In addition to the other powers conferred on a court by this section,
2
the court may make the following orders:
3
(a) an order directing any person to do or refrain from doing a
4
specified act for the purpose of securing compliance with any
5
other order made under this section;
6
(b) an order containing such ancillary or consequential
7
provisions as the court thinks just.
8
(5) Before making an order under this section, the court may give a
9
direction requiring either or both of the following:
10
(a) notice of the application by the Treasurer to be given to such
11
persons as it thinks fit;
12
(b) for the application by the Treasurer to be published in such
13
manner as it thinks fit.
14
(6) The court may, by order:
15
(a) rescind, vary or discharge an order made by it under this
16
section; or
17
(b) suspend the operation of an order made by it under this
18
section.
19
Schedule 1 Main amendments
106
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Other powers of court unaffected
1
(7) The powers conferred on a court by this section are in addition to,
2
and not instead of, any other powers of the court, whether
3
conferred by this Act or otherwise.
4
133 Treasurer may require information
5
(1) The Treasurer may give a notice under this section if the Treasurer
6
has reason to believe that a person can give information or produce
7
documents relating to matters that are relevant to the exercise by
8
the Treasurer of his or her powers under this Act.
9
(2) The Treasurer may, by notice in writing given to the person,
10
require the person:
11
(a) to give any such information to the Treasurer or any other
12
specified person acting on the Treasurer's behalf; or
13
(b) to produce any such documents to the Treasurer or any other
14
specified person acting on the Treasurer's behalf.
15
Note:
The periods mentioned in section 77 (time limit on making orders and
16
decisions) stop until the person gives the information or produces the
17
documents (see subsection 77(4)).
18
Giving information
19
(3) The notice must specify:
20
(a) a period (of at least 14 days) within which the information
21
must be given or the documents produced; and
22
(b) the manner of giving the information or producing
23
documents.
24
The Treasurer may, in writing, extend (or further extend) the
25
period mentioned in paragraph (a) if the Treasurer is satisfied that
26
it is reasonably necessary.
27
(4) The information mentioned in paragraph (2)(a) must be given to
28
the Treasurer:
29
(a) in writing signed by that person; or
30
(b) for a corporation--by a competent officer of the corporation.
31
Offence
32
(5) A person commits an offence if:
33
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
107
(a) the person is given a notice under this section; and
1
(b) the person does not comply with the notice.
2
Note:
For the liability of an officer of a corporation authorising or permitting
3
contraventions, see section 102.
4
Penalty: Imprisonment for 6 months or 30 penalty units, or both.
5
(6) Subsection (5) does not apply if the person complies with the
6
notice to the extent to which the person is capable of complying
7
with it.
8
Note:
A defendant bears an evidential burden in relation to the matter in
9
subsection (6) (see subsection 13.3(3) of the Criminal Code).
10
Self-incrimination
11
(7) A person is not excused from giving information or producing a
12
document under this section on the ground that doing so might tend
13
to incriminate him or her.
14
(8) However, in the case of an individual:
15
(a) the answer or information given; or
16
(b) any document produced; or
17
(c) giving the information or answer, or producing the document
18
or thing; or
19
(d) any information, document or thing obtained as a direct or
20
indirect consequence of giving the information or answer, or
21
producing the document or thing;
22
is not admissible in evidence against him or her in any criminal
23
proceedings or in proceedings for the recovery of a civil penalty,
24
other than proceedings under this Act or section 137.1 or 137.2 of
25
the Criminal Code (false or misleading information or documents)
26
relating to this Act.
27
134 Validity of acts done in contravention of this Act
28
An act is not invalidated by the fact that it constitutes an offence
29
against or contravention of a civil penalty provision of this Act.
30
Schedule 1 Main amendments
108
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
135 Manner of notification and application
1
(1) A notice given, or application made, for the purposes of this Act is
2
of no effect unless it is given or made in the manner approved, in
3
writing, by the Secretary.
4
Note:
The Secretary may determine different manners of giving notices or
5
making applications for different classes of notices or applications
6
(see subsection 33(3A) of the Acts Interpretation Act 1901).
7
(2) The manner approved by the Secretary may be electronic
8
communication.
9
(3) To avoid doubt, a notice given for the purposes of this Act
10
includes:
11
(a) a notice required by a condition imposed in an exemption
12
certificate or a no objection notification; and
13
(b) a notice under section 81 (notice of notifiable actions); and
14
(c) a notice mentioned in item 4 of the table in subsection 113(1)
15
(notice of actions that are not notifiable actions).
16
136 Withdrawal of applications and notices
17
An application or notice that is withdrawn is of no effect.
18
137 Delegation of powers or functions
19
Delegations by Treasurer
20
(1) The Treasurer may, in writing, delegate to the following persons all
21
or any of the Treasurer's powers or functions under this Act
22
(except under sections 105, 106, 107 and 110):
23
(a) the Secretary;
24
(b) the Commissioner of Taxation;
25
(c) a person engaged under the Public Service Act 1999 who is
26
employed in the Department or the Australian Taxation
27
Office.
28
(2) The Treasurer may delegate the Treasurer's power under
29
section 105 (Treasurer's declaration relating to charge), 106 (effect
30
of charge on land), 107 (vesting of interest in land) or 110
31
(exemption from stamp duty and other State or Territory taxes and
32
fees) to the following persons:
33
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
109
(a) the Secretary;
1
(b) the Commissioner of Taxation;
2
(c) an SES employee, or acting SES employee, in the
3
Department or the Australian Taxation Office.
4
Delegations by Secretary
5
(3) The Secretary may, in writing, delegate to the following persons all
6
or any of the Secretary's powers or functions under this Act:
7
(a) the Commissioner of Taxation;
8
(b) a person engaged under the Public Service Act 1999 who is
9
employed in the Department or the Australian Taxation
10
Office.
11
Subdelegations by Commissioner of Taxation
12
(4) If a power or function is delegated to the Commissioner of
13
Taxation under this section, the Commissioner may, in writing,
14
subdelegate the power or function to a person engaged under the
15
Public Service Act 1999 who is employed in the Australian
16
Taxation Office.
17
Note:
See section 138 for the effect of a delegation to the Commissioner of
18
Taxation.
19
(5) Sections 34AA, 34AB and 34A of the Acts Interpretation Act 1901
20
apply in relation to the subdelegation in a way corresponding to the
21
way in which they apply in relation to a delegation.
22
Directions
23
(6) In exercising powers or performing functions delegated or
24
subdelegated by a person under this section, the delegate or
25
subdelegate must comply with any directions of the person.
26
Delegations in relation to specified kinds of matters
27
(7) Without limiting this section or subsection 33(3A) of the Acts
28
Interpretation Act 1901, a power or function may be delegated or
29
subdelegated generally or only in relation to specified kinds of
30
matters.
31
Schedule 1 Main amendments
110
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
138 Powers of Commissioner of Taxation
1
Powers of Commissioner of Taxation as a result of delegation
2
(1) If a power or function under a provision of this Act is delegated to
3
the Commissioner of Taxation under section 137, the
4
Commissioner has the general administration of this Act to the
5
extent of administering the provision.
6
Note:
The provision is therefore a taxation law for the purposes of the
7
Taxation Administration Act 1953 (among other laws). That Act
8
contains a wide range of provisions about gathering, protecting and
9
dealing with information, the exercise of powers and the performance
10
of functions, under taxation laws, and the enforcement of taxation
11
laws.
12
(2) However, the following do not apply in relation to this Act:
13
(a) Part 4-25 (charges and penalties), other than section 288-35
14
and Division 298 to the extent that it relates to that section, in
15
Schedule 1 to the Taxation Administration Act 1953;
16
(b) paragraph 355-15(c) in that Schedule (application of
17
Division 355);
18
(c) Division 444 in that Schedule (obligations of entities on
19
behalf of other entities).
20
(3) To avoid doubt, the Secretary or a person engaged under the Public
21
Service Act 1999 who is employed in the Department may be a
22
taxation officer (within the meaning of subsection 8J(1) of the
23
Taxation Administration Act 1953) to the extent that this Act is a
24
taxation law.
25
Powers of Commissioner of Taxation as a result of request by
26
Treasurer
27
(4) The Treasurer may request, in writing, the Commissioner of
28
Taxation to exercise his or her powers under section 353-10 or
29
353-15 (powers to obtain information and evidence and access
30
premises) in Schedule 1 to the Taxation Administration Act 1953 in
31
relation to a matter if a power or function has not been delegated to
32
the Commissioner under section 137 in relation to the matter.
33
(5) If the Treasurer does so, the Commissioner of Taxation (or an
34
individual authorised by the Commissioner) may exercise his or
35
her powers under those sections of that Act as if a reference in
36
Main amendments Schedule 1
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
111
those sections to a taxation law included a reference to this Act to
1
the extent that it relates to the matter.
2
139 Regulations
3
(1) The Governor-General may make regulations prescribing matters:
4
(a) required or permitted by this Act to be prescribed by the
5
regulations; or
6
(b) necessary or convenient to be prescribed for carrying out or
7
giving effect to this Act.
8
(2) Without limiting subsection (1), the regulations may provide for a
9
method for indexing a value or an amount prescribed for the
10
purposes of this Act.
11
(3) Despite subsection 14(2) of the Legislative Instruments Act 2003,
12
the regulations may provide in relation to a matter by applying,
13
adopting or incorporating, with or without modification, any matter
14
contained in any other instrument or other writing as in force or
15
existing from time to time.
16
Schedule 2 Amendments contingent on the Acts and Instruments (Framework Reform)
Act 2015
112
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Schedule 2
--Amendments contingent on the
1
Acts and Instruments (Framework
2
Reform) Act 2015
3
4
Foreign Acquisitions and Takeovers Act 1975
5
1 Section 3
6
Omit "publication", substitute "registration".
7
2 Section 66
8
Omit "publication", substitute "registration".
9
3 Subsections 67(1) and (3) and 68(1)
10
After "Treasurer may", insert ", by notifiable instrument,".
11
4 Subsection 68(2) (note)
12
Omit "published in the Gazette", substitute "registered on the Federal
13
Register of Legislation".
14
5 Subsection 69(1)
15
After "Treasurer may", insert ", by notifiable instrument,".
16
6 Section 72 (heading)
17
Repeal the heading, substitute:
18
72 Registration and commencement of orders
19
7 Subsection 72(1) (heading)
20
Repeal the heading, substitute:
21
Registration of orders
22
8 Paragraph 72(1)(b)
23
Repeal the paragraph, substitute:
24
(b) registered on the Federal Register of Legislation within 10
25
days after it is made.
26
Amendments contingent on the Acts and Instruments (Framework Reform) Act 2015
Schedule 2
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
113
9 Paragraphs 72(2)(a) and (b)
1
Omit "published", substitute "registered".
2
10 Subparagraph 77(2)(c)(ii)
3
Omit "published the order in the Gazette", substitute "registered the
4
order".
5
11 Paragraph 77(3)(b)
6
Omit "published in the Gazette", substitute "registered".
7
12 Subparagraph 77(3)(d)(i)
8
Omit "published the order in the Gazette", substitute "registered the
9
order".
10
13 Section 80
11
Omit "publication", substitute "registration".
12
14 Subsection 139(3)
13
Omit "Legislative Instruments Act 2003", substitute "Legislation Act
14
2003".
15
Schedule 3 Application and transitional provisions for Schedules 1 and 2 and Fees
Imposition Act
114
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Schedule 3
--Application and transitional
1
provisions for Schedules 1 and 2 and
2
Fees Imposition Act
3
4
1 Definitions
5
In this Schedule:
6
civil penalty provision has the same meaning as in the Regulatory
7
Powers (Standard Provisions) Act 2014.
8
commencement means the commencement of Schedule 1 to this Act.
9
new provisions means the Foreign Acquisitions and Takeovers Act
10
1975 as in force immediately after commencement.
11
old provisions means the Foreign Acquisitions and Takeovers Act 1975
12
as in force immediately before commencement.
13
Policy means:
14
(a) the authoritative English version of the Ministerial statement
15
called Australia's Foreign Investment Policy, first released in
16
June 2010; or
17
(b) any earlier equivalent Ministerial statement (such as the
18
Summary of Australia's Foreign Investment Policy).
19
transitional period means the period beginning on 1 March 2015 and
20
ending on 30 November 2015.
21
2 Notices given before commencement
22
Notices under old section 25 and the Policy
23
(1)
A notice that is given under section 25 of the old provisions or the
24
Policy before commencement is taken, after commencement, to be a
25
notice that a significant action (that is not a notifiable action) is
26
proposed to be taken.
27
Note:
The Treasurer has certain powers if the Treasurer is given a notice that a significant
28
action is proposed to be taken (see sections 74, 75 and 77 of the new provisions).
29
Notices under old section 26 or 26A
30
(2)
A notice that is given under section 26 or 26A of the old provisions
31
before commencement is taken, after commencement, to have been
32
given under section 81 of the new provisions.
33
Application and transitional provisions for Schedules 1 and 2 and Fees Imposition Act
Schedule 3
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
115
(3)
To avoid doubt, a notice given under section 26 or 26A of the old
1
provisions is a notice stating that a significant action is proposed to be
2
taken.
3
Note:
Certain powers and limitations apply if a notice is given stating that a significant action
4
is proposed to be taken (see sections 74, 75 and 77 of the new provisions).
5
(4)
Subitems (1) and (2) do not apply in relation to section 113 of the new
6
provisions (when fees are payable).
7
Notices requiring information and documents
8
(5)
A notice that is given under section 36 of the old provisions before
9
commencement is taken, after commencement, to have been given
10
under section 133 of the new provisions.
11
(6)
Despite subitem (5), subsections 77(4) (effect of notice on time limits)
12
and 133(7) and (8) (self-incrimination) of the new provisions apply only
13
in relation to notices given under section 133 of the new provisions after
14
commencement.
15
Time of giving notices
16
(7)
To avoid doubt, nothing in this item changes the time when a notice is
17
given.
18
3 Notices given during transitional period in relation to
19
actions relating to Australian rural land
20
(1)
A notice that is given under section 25 or 26 of the old provisions or the
21
Policy during the transitional period in relation to Australian rural land
22
is taken, after commencement, to be a notice given under section 81 of
23
the new provisions in relation to agricultural land.
24
(2)
Section 77 (time limit on making orders and decisions) of the new
25
provisions applies in relation to such a notice as if the notice were given
26
at commencement.
27
(3)
A notice given by the Treasurer in accordance with the Policy during
28
the transitional period in relation to an acquisition or proposed
29
acquisition of Australian rural land binds the Commonwealth after
30
commencement.
31
Note:
The notice does not bind the person to whom the notice is given.
32
Schedule 3 Application and transitional provisions for Schedules 1 and 2 and Fees
Imposition Act
116
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
References to agricultural land
1
(4)
The new provisions apply in relation to an interest in Australian rural
2
land to which this item applies as if a reference in those provisions to
3
agricultural land were a reference to Australian rural land.
4
4 Actions taken during transitional period in relation to
5
Australian rural land
6
Requirement to give notice
7
(1)
A foreign person who acquires an interest in Australian rural land
8
during the transitional period must notify the Treasurer in accordance
9
with section 135 of the new provisions unless the person has notified
10
the Treasurer of the acquisition or proposed acquisition before
11
commencement.
12
(2)
A notice given under this item must be given within 30 days of
13
commencement.
14
(3)
A notice given under this item is taken to have been given under
15
section 81 of the new provisions.
16
Offence
17
(4)
A person commits an offence if:
18
(a) the person is a foreign person; and
19
(b) the person acquires an interest in Australian rural land; and
20
(c) the acquisition occurs during the transitional period; and
21
(d) the person does not notify the Treasurer of the acquisition
22
during the transitional period; and
23
(e) the person does not notify the Treasurer of the acquisition in
24
accordance with this item.
25
Penalty: Imprisonment for 3 years, or 750 penalty units, or both.
26
Civil penalty provisions
27
(5)
A person must not contravene subitem (1) or (2).
28
Civil penalty:
250 penalty units.
29
Application and transitional provisions for Schedules 1 and 2 and Fees Imposition Act
Schedule 3
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
117
(6)
Section 99 of the new provisions applies as if the civil penalty
1
provisions in subitems (1) and (2) were civil penalty provisions of the
2
Foreign Acquisitions and Takeovers Act 1975.
3
References to agricultural land
4
(7)
The new provisions apply in relation to an interest in Australian rural
5
land to which this item applies as if a reference to agricultural land were
6
a reference to Australian rural land.
7
5 Orders, advices and decisions
8
(1)
The following table translates orders or advices given, or decisions
9
made, before commencement under the old provisions for the purposes
10
of the new provisions.
11
12
Orders, advice and decisions
Item
Column 1
This thing done under this
provision of the old provisions ...
Column 2
is taken to be this thing done
under this provision of the new
provisions
1
an order given under
subsection 18(2), 19(2), 20(2), 21(2)
or 21A(2)
an order given under
subsection 67(2).
2
an order given under
subsection 18(3), 19(3) or 21A(3)
an order given under
subsection 67(3).
3
an order given under
subsection 18(4), 19(4), 20(3), 21(3)
or 21A(4)
an order given under
subsection 69(2).
4
an order given under section 22
an interim order given under
section 68.
5
a decision made under
subsection 25(1A) where conditions
have been imposed
a decision made under
paragraph 74(2)(a).
6
an advice given under
subsection 25(1B) where conditions
have been imposed
a no objection notification given
under paragraph 74(2)(b).
7
a decision made under
subsection 25(1A) where conditions
have not been imposed
a decision made under
paragraph 75(2)(a).
Schedule 3 Application and transitional provisions for Schedules 1 and 2 and Fees
Imposition Act
118
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Orders, advice and decisions
Item
Column 1
This thing done under this
provision of the old provisions ...
Column 2
is taken to be this thing done
under this provision of the new
provisions
8
an advice given under
subsection 25(1B) where conditions
have not been imposed
a no objection notification given
under paragraph 75(2)(b).
Variation and revocation of orders
1
(2)
The new provisions apply, after commencement, in relation to orders
2
and advices mentioned in column 1 of the table in subitem (1) as if
3
subparagraph 71(1)(b)(ii) and paragraph 74(6)(b) of the new provisions
4
were omitted.
5
Note:
Subparagraph 71(1)(b)(ii) and paragraph 74(6)(b) of the new provisions deal with when
6
orders and no objection notifications can be varied and revoked.
7
Gazettal
8
(3)
If:
9
(a) an order is published in the Gazette before Schedule 2
10
commences; and
11
(b) the period mentioned in section 25 of the old provisions has
12
not ended by that commencement;
13
the new provisions apply, after that commencement, as if a reference to
14
the registration of a notifiable instrument were a reference to
15
publication in the Gazette.
16
Application for all purposes
17
(4)
To avoid doubt, this item applies for all purposes, including for the
18
purposes of Part 5 (offences and civil penalties) and section 132
19
(powers of court to enforce Treasurer's orders) of the new provisions.
20
6 Disposal orders
21
(1)
Section 69 (disposal orders) of the new provisions applies in relation to:
22
(a) any significant action taken before commencement if the
23
Treasurer would have had the power (before commencement)
24
Application and transitional provisions for Schedules 1 and 2 and Fees Imposition Act
Schedule 3
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
119
to make an order under subsection 18(4), 19(4), 20(3), 21(3)
1
or 21A(4) of the old provisions in relation to the action; and
2
(b) any acquisition of an interest in Australian rural land taken
3
during the transitional period; and
4
(c) any significant action taken after commencement.
5
(2)
Subitem (1) does not affect the operation of section 77 (time limit on
6
making orders and decisions) of the new provisions.
7
7 Anti-avoidance
8
Sections 78 (anti-avoidance) and 79 (persons involved in avoidance
9
taken to be associates) of the new provisions apply in relation to any
10
scheme, whether entered into before or after commencement.
11
8 Certificates
12
Certificates given before commencement
13
(1)
A certificate given under paragraph 3(e) or (r) of the Foreign
14
Acquisitions and Takeovers Regulations 1989 before commencement is
15
taken, after commencement, to have been given under section 57 of the
16
new provisions (exemption certificates for new dwellings).
17
(2)
A certificate given under paragraph 3(h) of the Foreign Acquisitions
18
and Takeovers Regulations 1989 before commencement is taken, after
19
commencement, to have been given under section 58 of the new
20
provisions (exemption certificates for foreign persons).
21
(3)
Subitems (1) and (2) do not apply for the purposes of section 113 (when
22
fees are payable) of the new provisions.
23
Applications for certificates made before commencement
24
(4)
The Treasurer may give a certificate under section 57 or 58 of the new
25
provisions to a person if:
26
(a) the person has made an application for a certificate under
27
paragraph 3(e), (h) or (r) of the Foreign Acquisitions and
28
Takeovers Regulations 1989 before commencement; and
29
(b) a decision on the application has not been made by
30
commencement.
31
Schedule 3 Application and transitional provisions for Schedules 1 and 2 and Fees
Imposition Act
120
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Application of this item
1
(5)
This item applies for all purposes, including for the purposes of Part 5
2
of the new provisions (offences and civil penalties).
3
9 Offences and civil penalties
4
(1)
Part 5 (offences and civil penalties), except sections 102 and 103, of the
5
new provisions applies in relation to any conduct engaged in after
6
commencement (including in relation to orders or notices given before
7
commencement).
8
(2)
Sections 102 (liability of officers of corporations authorising or
9
permitting contraventions) and 103 (civil penalties for officers of
10
corporations failing to prevent contraventions) of the new provisions
11
apply in relation to a conviction of an offence against the new
12
provisions, or a civil penalty order that is made against a corporation for
13
a contravention of the new provisions, after commencement for conduct
14
engaged in after commencement.
15
10 Fees
16
(1)
Section 113 (when fees are payable) of the new provisions applies in
17
relation to:
18
(a) applications made after commencement under the new
19
provisions; and
20
(b) orders, notices and notifications given after commencement
21
in relation to action relating to Australian rural land taken
22
during the transitional period; and
23
(c) orders, notices and notifications given after commencement
24
in relation to action taken after commencement.
25
(2)
Section 12 of the Foreign Acquisitions and Takeovers Fees Imposition
26
Act 2015 applies in relation to each financial year starting on or after
27
1 July 2016.
28
11 Record-keeping
29
Division 2 of Part 7 (record-keeping) of the new provisions applies in
30
relation to:
31
(a) actions mentioned in paragraph 117(1)(a) or (b) of the new
32
provisions that are taken after commencement; and
33
(b) acts, transactions, events or circumstances that:
34
Application and transitional provisions for Schedules 1 and 2 and Fees Imposition Act
Schedule 3
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
121
(i) relate to whether a person is complying with a condition
1
in a no objection notification or an exemption
2
certificate; and
3
(ii) occur after commencement (including in relation to
4
notices or certificates given before commencement);
5
and
6
(c) disposals of interests in residential land that occur after
7
commencement.
8
12 Confidentiality of information
9
Division 3 of Part 7 (confidentiality of information) of the new
10
provisions applies in relation to records or disclosures made, and uses,
11
of protected information after commencement, whether the protected
12
information was obtained before or after that time.
13
13 Transitional rules
14
(1)
The Treasurer may, by legislative instrument, make rules prescribing
15
matters of a transitional nature (including prescribing any saving or
16
application provisions) relating to the amendments or repeals made by
17
this Act.
18
(2)
However, to avoid doubt, the rules may not do the following:
19
(a) create an offence or civil penalty;
20
(b) provide powers of:
21
(i) arrest or detention; or
22
(ii) entry, search or seizure;
23
(c) impose a tax;
24
(d) set an amount to be appropriated from the Consolidated
25
Revenue Fund under an appropriation in this Act;
26
(e) directly amend the text of this Act.
27
(3)
This Schedule (other than subitem (2)) does not limit the rules that may
28
be made for the purposes of subitem (1).
29
Schedule 4 Amendments of confidentiality provisions
122
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
Schedule 4
--Amendments of confidentiality
1
provisions
2
3
Anti-Money Laundering and Counter-Terrorism Financing
4
Act 2006
5
1 Subsection 125(1)
6
Repeal the subsection, substitute:
7
(1) The Commissioner of Taxation and any taxation officer is entitled
8
to access to AUSTRAC information for any purpose relating to the
9
facilitation of the administration or enforcement of:
10
(a) a taxation law; or
11
(b) the Foreign Acquisitions and Takeovers Act 1975, if the
12
Commissioner or officer is accessing the information in
13
relation to a matter for which there has been a request under
14
subsection 138(4) of that Act.
15
Income Tax Assessment Act 1997
16
2 Subsection 995-1(1)
17
Insert:
18
property right or interest has the meaning given by
19
subsection 354-5(2) in Schedule 1 to the Taxation Administration
20
Act 1953.
21
Taxation Administration Act 1953
22
3 After Division 353 in Schedule 1
23
Insert:
24
Amendments of confidentiality provisions Schedule 4
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
123
Division 354--Power to obtain information about rights or
1
interests in property
2
354-5 Power to obtain information about rights or interests in
3
property
4
(1) The Commissioner may by notice in writing require you to give the
5
Commissioner information required for the purpose of the
6
administration or operation of a
*
taxation law if:
7
(a) both of the following apply:
8
(i) you have a legal or equitable interest in real or personal
9
property;
10
(ii) the information is about any other
*
property right or
11
interest in the property; or
12
(b) both of the following apply:
13
(i) the Commissioner is satisfied that you may have
14
information about a property right or interest in
15
property;
16
(ii) the information is about the property right or interest.
17
Note:
Failing to comply with a requirement may be an offence under
18
section 8C.
19
(2) A property right or interest is:
20
(a) a legal or equitable interest in the property; or
21
(b) a right, power or privilege in connection with the property;
22
whether present or future and whether vested or contingent.
23
Content of notice
24
(3) The notice must specify the following:
25
(a) the property to which the notice applies;
26
(b) the information required;
27
(c) the period within which the information must be given;
28
(d) the manner of giving the information.
29
(4) The information required may include the following:
30
(a) details of your interest in the property;
31
(b) details (including name and address) of any person who has a
32
*
property right or interest in the property;
33
Schedule 4 Amendments of confidentiality provisions
124
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
(c) details of any class of person who has a property right or
1
interest in the property;
2
(d) details of each property right or interest in the property,
3
including:
4
(i) the nature and extent of the right or interest; and
5
(ii) the circumstances giving rise to the right or interest.
6
(5) If:
7
(a) you are given a notice under paragraph (1)(a); and
8
(b) you do not have the information required but another person
9
has the information;
10
you must make all reasonable efforts to obtain the information.
11
(6) To avoid doubt, you may be required as a result of a notice under
12
this section to create a document giving the information required.
13
(7) The period specified in the notice must be:
14
(a) at least 14 days after the notice is given (except if
15
paragraph (b) applies); or
16
(b) if the Commissioner is satisfied that a shorter period is
17
necessary--the shorter period.
18
Relationship with section 353-10
19
(8) Nothing in this section affects the operation of section 353-10 and
20
nothing in that section affects the operation of this section.
21
4 Subsection 355-55(1) in Schedule 1 (at the end of the table)
22
Add:
23
6
a Minister responsible for:
(a) agriculture; or
(b) industry policy; or
(c) investment promotion; or
(d) taxation policy; or
(e) foreign investment in
Australia
(a) is of information contained in the
Register of Foreign Ownership of
Agricultural Land; and
(b) is for the purpose of enabling that
Minister to discharge that
responsibility.
5 Subsection 355-65(4) in Schedule 1 (table items 1 to 4)
24
Repeal the items, substitute:
25
1
the Australian Securities and
is for the purpose of performing any
Amendments of confidentiality provisions Schedule 4
No. , 2015
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
125
Investments Commission
functions or exercising any powers
under any Act or instrument, or part of
any Act or instrument, of which the
Commission has the general
administration.
6 Subsection 355-65(4) in Schedule 1 (table item 7)
1
Repeal the item, substitute:
2
7
the Secretary of the Department
is for the purpose of administering the
Foreign Acquisitions and Takeovers Act
1975.
7 Subsection 355-65(8) in Schedule 1 (table items 3 and 4)
3
Repeal the items, substitute:
4
3
the
*
Immigration Secretary or the
Australian Border Force
Commissioner (within the
meaning of the Australian
Border Force Act 2015)
is for the purpose of performing any
functions or exercising any powers
under any Act or instrument, or part of
any Act or instrument, administered by
the Minister administering the
*
Immigration Department.
8 Subsection 355-65(8) in Schedule 1 (after table item 6)
5
Insert:
6
7
the Secretary of a Department
administered by a Minister
responsible for:
(a) agriculture; or
(b) industry policy; or
(c) investment promotion; or
(d) taxation policy; or
(e) foreign investment in
Australia
(a) is of information contained in the
Register of Foreign Ownership of
Agricultural Land; and
(b) is for the purpose of enabling that
Department to assist that Minister to
discharge that responsibility.
9 Section 355-75 in Schedule 1
7
Repeal the section, substitute:
8
355-75 Limits on disclosure to courts and tribunals
9
An entity who is or was a
*
taxation officer is not to be required to
10
disclose to a court or tribunal
*
protected information that was
11
Schedule 4 Amendments of confidentiality provisions
126
Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015
No. , 2015
acquired by the entity as a taxation officer except where it is
1
necessary to do so for the purpose of carrying into effect the
2
provisions of:
3
(a) a
*
taxation law; or
4
(b) the Foreign Acquisitions and Takeovers Act 1975, if the
5
entity acquired the information because of a request under
6
subsection 138(4) of that Act.
7
Note:
See also section 8ZK of this Act (about protection of witnesses).
8
10 Paragraph 355-155(b) in Schedule 1
9
After "Subdivision 355-B", insert "(except subsection 355-65(1)
10
operating in relation to item 7 in the table in subsection 355-65(4))".
11
11 Section 355-205 in Schedule 1
12
Repeal the section, substitute:
13
355-205 Limits on on-disclosure to courts or tribunals
14
An entity is not to be required to disclose to a court or tribunal
15
*
protected information that was acquired by the entity under
16
Subdivision 355-B or this Subdivision, except where it is necessary
17
to do so for the purpose of carrying into effect the provisions of:
18
(a) a
*
taxation law; or
19
(b) if the entity has or had duties, functions or powers under the
20
Foreign Acquisitions and Takeovers Act 1975--that Act.
21
Note:
See also section 8ZK of this Act (about protection of witnesses).
22
12 Application
23
(1)
The amendment of section 125 of the Anti-Money Laundering and
24
Counter-Terrorism Financing Act 2006 made by this Schedule applies
25
in relation to the accessing of information on or after the
26
commencement of this Schedule, whether the information was obtained
27
before, on or after the commencement of this Schedule.
28
(2)
The amendments of Division 355 in Schedule 1 to the Taxation
29
Administration Act 1953 made by this Schedule apply in relation to
30
records and disclosures of information made on or after the
31
commencement of this Schedule, whether the information was obtained
32
before, on or after the commencement of this Schedule.
33