FIRB farm approval threshold being debated by Labor's Penny Wong

FIRB farm approval threshold being debated by Labor's Penny Wong
FIRB farm approval threshold being debated by Labor's Penny Wong

Federal Labor has revealed it will oppose tighter vetting of Asian investment in Australian farms and agribusinesses which set the threshold for referral to the Foreign Investment Review Board at just $15 million in the case of proposed acquisitions of agricultural land.

Senator Penny Wong has challenged Prime Minister Malcolm Turnbull to overturn the foreign investment crackdown advocated during Tony Abbott's tenure.

Labor has proposed amendments to government legislation to ease the scrutiny for Chinese, Korean and Japanese investors in farming land by lifting the government's proposed $15 million threshold to $50 million.

The $50 million level would match Thai and Singaporean investments under the free-trade agreements negotiated during the Howard government.

The current FIRB limit sits at $252 million before FIRB approval is needed.

There is a $1 billion threshold that American, Kiwi and Chilean investors have under their free-trade agreements with Australia.

Senator Wong suggested the bill currently before Parliament would send the message that Australia was not an enthusiastic destination for foreign capital.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

Tags: 
Investment Investment Property

Comments

Be the first one to comment on this article
What would you like to say about this project?