Foreign investors will face a tough new national security test designed to protect Australia's critical assets from falling into the wrong hands. 9News
The new test would apply to foreign bids for technology, telecommunications and energy companies, as well as small-scale defence and services firms.The treasurer will have expanded powers to force the sale of assets or impose conditions after a deal is reached if national security is at risk.
Currently, private foreign investments under $275 million - or $1.2 billion for countries that have free trade agreements with Australia - are not screened. Mr Frydenberg said the reforms represent the most significant changes to Australia's foreign investment rules since they were introduced in 1975.
"It is vital that the government have the ability to call in an investment before, during or after acquisition for review if it raises national security concerns," he said."Australia has an enviable track record when it comes to welcoming foreign investment from around the world. These reforms will not change that."More than $13 billion of foreign investment in Australia last financial year came from China.
The US with $58 billion was the biggest source of investment, ahead of Canada, Singapore, Japan with China in fifth place.About 80 per cent of approvals last year had conditions attached.Draft legislation will be released next month, with the government intending to make the changes law before the regime comes into place on January 1.
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