Steps to consider for Australian non-residential assets
Steps to consider before purchasing or acquiring an Australian non-residential asset and how to apply for foreign investment approval.
You should seek legal advice before proceeding with your acquisition or purchase.
Step 1: How to determine if you are a foreign person
The definition of 'foreign person' as it is referred to in the Australian foreign investment legislation can be complex. To help you determine if you are a foreign person, see Are you a foreign person buying property in Australia?
In this content, we sometimes refer to 'foreign person' as 'foreign investor'.
Step 2: Work out if you meet the financial threshold
Foreign investors are generally required to notify the TreasurerExternal Link before acquiring an interest in an Australian asset, for Guidance see foreigninvestment.gov.auExternal Link. To determine if you meet the relevant thresholds, see monetary thresholdsExternal Link and reviewable investmentsExternal Link on the foreign investment website.
Step 3: Submit an investment proposal for approval
A non-residential asset includes:
- agricultural land
- business interests
- commercial land
- mining production or exploration tenements
- registrable water interests.
Generally, to acquire Australian non-residential assets, you must submit an investment proposal to the Treasurer who reviews and approves your proposal.
For more information, visit the foreign investment website for all non-residential investment proposals and submissionsExternal Link, including definitions of each type of investmentExternal Link.
You must register your asset
Step 4: How to register your asset
Once you become the owner of the asset, you must register it using Online services for foreign investors.External Link
You must register the asset within 30 days of either:
- acquiring an interest in or purchasing your asset
- becoming a foreign person while holding an interest in Australian land.
Each entity is required to set up its own access to Online services for foreign investors and lodge its own register notices. The obligation to register applies on an entity-by-entity basis rather than on a corporate group basis. Each entity within a group will have its own registration obligations for:
- an action it takes or is deemed to take
- assets it holds or is deemed to hold.
For more information on what may give rise to a register requirement, visit the foreign investment website for:
- Part 7A of the Foreign Acquisitions and Takeovers Act 1975Opens in a new window
- Guidance Note 15External Link (Register of Foreign Ownership of Australian Assets)
- Guidance Note 2External Link (Key Concepts).
For information on registering the different types of non-residential assets, see How a foreign investor registers non-residential assets.
You must register your asset even if you did not require approval to acquire it.
Failure to comply may result in severe penalties. See how the Australian government ensures compliance with foreign investment lawsExternal Link.
Your obligations with owning assets
You must comply with the conditions set out in your approval notices. More information about ongoing compliance is available at foreigninvestment.gov.auExternal Link.
When you sell or dispose of the asset
Step 5: Update the registered details
You must update the registered details of your asset ownership using Online services for foreign investorsExternal Link.
There may be other rules you need to comply with when disposing of Australian assets, see Foreign residents doing business in Australia.