Foreign Acquisitions and Takeovers Act 1975

PART 3 - POWERS OF TREASURER  

Division 3 - Last resort powers: orders to deal with national security risks arising after an initial assessment  

Subdivision B - Orders  

SECTION 79D   ORDER PROHIBITING PROPOSED ACTIONS  

79D(1)    
The Treasurer may, by notifiable instrument, make an order under subsection (2) if the Treasurer is satisfied that:

(a)    an action is proposed to be taken; and

(b)    taking the action would be contrary to national security.

Note: See also Part 5 (offences and civil penalties).

79D(2)    
The Treasurer may make an order in accordance with the following table.

Powers of Treasurer to prohibit proposed actions
Item	If the action is …	the Treasurer may make an order prohibiting …
1	to acquire:	the whole or a part of the proposed acquisition.
	(a)	a direct interest in an entity or Australian business; or
	(b)	a direct interest in an Australian entity, or Australian business, that is an agribusiness; or
	(c)	an interest in securities in an entity; or
	(d)	an interest of any percentage in an entity or an Australian business; or
	(e)	an interest in assets of an Australian business; or
	(f)	a direct interest in a national security business; or
	(g)	a legal or equitable interest in an exploration tenement, and that action is to be taken by a foreign person who is not a foreign government investor
2	to issue securities in an entity	the whole or a part of the proposed issue of the securities.
3	to enter an agreement mentioned in paragraph 40(2)(d) or subparagraph 55D(2)(a)(ii)	entering the proposed agreement.
4	to alter a constituent document of an entity as mentioned in paragraph 40(2)(e) or subparagraph 55D(2)(a)(iii)	the proposed alteration.
5	to start an Australian business, and that action is to be taken by a foreign person who is not a foreign government investor	the starting of the whole or a part of the Australian business.
6	to start a national security business	the starting of the whole or a part of the national security business.
7	to enter a significant agreement with an Australian business	entering the proposed agreement.
8	to terminate a significant agreement with an Australian business	the termination of the existing agreement.
9	to acquire an interest in Australian land	the proposed acquisition.
10	to take any significant action prescribed by regulations made for the purposes of section 44	any thing prescribed by regulations made for the purposes of this item.

79D(3)    
If the Treasurer makes an order under subsection (2), the Treasurer may, by notifiable instrument, also make an order in accordance with the following table.

Additional orders
Item	If the action is …	the Treasurer may also make an order …
1	to acquire:	directing a specified foreign person (whether alone or with specified associate or class of associates) not to:
	(a)	a direct interest in an entity; or	(a)	increase the proportion of the total voting power, or the total potential voting power, in the entity that the person is in a position to control (or increase that proportion beyond a specified proportion); or
	(b)	a direct interest in an Australian entity that is an agribusiness; or	(b)	increase the proportion of interests in issued securities in the entity that the person holds (or increase that proportion beyond a specified proportion).
	(c)	an interest of any percentage in an entity; or
	(d)	an interest in securities in an entity
2	to acquire:	directing a specified foreign person (whether alone or with specified associate or class of associates):
	(a)	a direct interest in an Australian business that is an agribusiness; or	(a)	not to acquire any interests in that business or the assets of that business; or
	(b)	a direct interest in a national security business; or	(b)	to acquire any such interests only to a specified extent.
	(c)	an interest in assets of an Australian business; or
	(d)	an interest of any percentage in an Australian business
3	to acquire an interest in Australian land	directing a specified foreign person (whether alone or with specified associate or class of associates):
			(a)	not to acquire any interests in the land or other thing concerned; or
			(b)	to acquire any such interests only to a specified extent.

Automatic revocation of no objection notification or notice imposing conditions

79D(4)    
If the Treasurer makes an order under subsection (2), any no objection notification or notice imposing conditions given in relation to the action is revoked by force of this subsection on the day that the order commences.

Note: For when an order commences, see section 79M .