Foreign investment benefits Australia’s economic development, and the government accepts and encourages foreign investment that aligns with the national interest. Australia has a long-standing vetting procedure for foreign investment that undergoes occasional adjustments. The government can block or reject investment proposals deemed detrimental to national interests.

All foreign investment proposals must comply with the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA) and must be suitable for approval under the Australian government’s Foreign Investment Policy. The Foreign Investment Review Board (FIRB) is a non-statutory body that examines various foreign investment proposals to check whether they comply with the requirements and then makes recommendations to the Treasurer – the ultimate decision-maker – accordingly.

The Treasurer may “call in” significant and reviewable national security activities that have not been independently notified, subject to a time restriction. This power may be used whenever convenient up to ten years after the pertinent action. The treasurer cannot call in a notification of an action, a no-objection notification, or an exemption certificate. The Treasurer may provide a no-objection notification with or without limitations, forbid the action, or demand that the investor sell the acquired asset if the Treasurer uses the call-in power and finds a national security concern.