Key topics discussed at the Foreign Investment Stakeholder Group meeting 23 March 2023
Changes to foreign investor interactions with the ATO
Register of foreign ownership of Australian assets
Obligations relating to Foreign Ownership of Australian Assets (the register) are expected to commence on 1 July 2023. New categories to be registered on the register include:
- all commercial land acquisitions (including those acquisitions under the threshold for notification)
- mining and production tenements
- business acquisitions (percent of ownership)
- national security transactions and agreements.
Existing obligations for registering agricultural land, residential land and water entitlements continue.
Member comments
Do mortgagee interests need to be registered on the new register? When does a mortgagee interest become registrable?
- A mortgagee interest needs to be registered on the register if the mortgagee takes possession of the property for any reason.
Online services for foreign investors
Digitalisation of the ATO’s foreign investment program system, consistent with how government systems are being designed, and reflecting the ATO Digital Strategy and the Government Digital Strategy, both of which prioritise the client experience.
Core of ATO work remains the same. That is, processing applications, collecting registrations, compliance and administering the Vacancy Fee.
Services to be available on Online services for foreign investors are:
- residential foreign investment applications
- vacancy fee return lodgment
- asset registrations
- maintaining investor details
- appointment of agents/intermediaries.
Key dates to be mindful of in the rollout of Online services for foreign investors and the register:
- 16 June 2023 – Current foreign investment forms will be removed and will no longer available for use.
- 17 June 2023 – Commencement of 10-day period during which some regular ATO services will be unavailable.
- No residential applications accepted
- No registrations
- No vacancy fee forms available
- 19 to 25 June 2023 – Limited function in lead up to go live date, we will still
- process applications lodged prior to 17 June 2023
- accept payments and process payments
- fee waiver processes remain uninterrupted, requests can be lodged and processed.
- 26 June 2023 – Online services for foreign investors goes live and is available to the public.
- 1 July 2023 – The new register of foreign ownership of Australian Assets obligations commences.
- 1 July 2023 – Annual fees indexation occurs.
Member comments
Do foreign investors each need their own myGovID?
- Yes. Each individual person who accesses Online services for foreign investors must have their own individual myGovID digital identity.
Will Online services for foreign investors track non-residential approvals, conditions etc as well as the registration?
- No. Non-residential application/approval status will not be visible on Online services for foreign investors. Online services for foreign investors will show non-residential clients their registrations on the register of Foreign Ownership of Australian Assets.
Does myGovID link director ID and Online services for foreign investors?
- No. There is no link between Online services for foreign investors and director ID. Director ID is a unique 15 digit number given to a director who has verified their identity with the ATO. To obtain a director ID, a director would use myGovID to verify their identity.
How will the ATO manage compliance during the transitional period?
- The ATO understands that most foreign investors are willing to do the right thing. Compliance resources will continue to focus on those clients who do not take steps to meet their obligations. Any clients with concerns about meeting their obligations should come and talk to us. To make a voluntary disclosure, clients can
- Email FIRBCompliance@ato.gov.au
- Make a disclosure or tip off by visiting the Tax Integrity Centre.
What will investors do if or when they cannot use myGovID. For example, if unable to download the app?
- If you are unable to download the myGovID app, you will need to contact the ATO.
What is the view available to agents in Online services for foreign investors? Can it be restricted to view only 1 asset? How wide will the visibility be?
- Agents or intermediaries who have been authorised to act on behalf of a client will have access to a client’s foreign investment interactions related to ATO’s areas of administration, that is
- residential applications
- vacancy fee return lodgment
- asset registrations.
Indexation of foreign investment fees
Annual indexation of fees will occur as usual on 1 July 2023. Avoid indexed fees by lodging your exemption certificate applications before 17 June 2023.
Renewed group charter
The renewed charter of the Foreign Investment Stakeholder Group was discussed, and no issues were raised with the content.
A draft copy was distributed to group members prior to the meeting. This version will be endorsed and submitted to the ATO’s consultation team as per consultation framework.
Key topics discussed at the Foreign Investment Stakeholder Group meeting 23 March 2023