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 79E
DISPOSAL ORDERS
79E(1)
The Treasurer may, by notifiable instrument, make an order under subsection (2) if the Treasurer is satisfied that: (a) an action has been taken; and (b) the result of the action is contrary to national security.
79E(2)
The Treasurer may make an order in accordance with the following table.
Orders made under table item 7
79E(3)
Without limiting item 7 of the table in subsection (2): (a) a foreign person is taken to have acquired an interest in Australian land if the person becomes (with or without the knowledge of the person) a beneficiary in a trust that consists of or includes the interest; and (b) if the trust is a discretionary trust - a reference to the disposal of the interest of the foreign person is a reference to the disposal of any assignable benefits in relation to that trust that may ultimately vest in that foreign person.
Orders made under table items 2, 3, 4 or 6
79E(4)
Before the end of a period specified in an order made under any of items 2, 3, 4 or 6 of the table in subsection (2) (or that period as extended under a previous application of this subsection), the Treasurer may, in writing, extend the period. The order has effect as if the period as extended had been specified in the order.
Automatic revocation of no objection notification or notice imposing conditions
79E(5)
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.
View history note
Hide history noteThe Treasurer may, by notifiable instrument, make an order under subsection (2) if the Treasurer is satisfied that: (a) an action has been taken; and (b) the result of the action is contrary to national security.
Note: See also Part 5 (offences and civil penalties).
79E(2)
The Treasurer may make an order in accordance with the following table.
| Powers of Treasurer to require disposal of interests | ||
| Item | If the action was … | the Treasurer may make an order directing … |
| 1 | to acquire: | the person who acquired the interest to dispose of the interest within a specified period to one or more persons who are not associates of the person. |
| (a) | a direct interest in an entity; 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) | a direct interest in a national security business; or | |
| (e) | 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 acquire: | specified persons to do within a specified period, or refrain from doing, specified acts or acts of a specified kind. |
| (a) | an interest of any percentage in an entity or an Australian business; or | |
| (b) | an interest in assets of an Australian business | |
| 3 | to enter an agreement mentioned in paragraph 40(2)(d) or subparagraph 55D(2)(a)(ii) | specified persons to do within a specified period, or refrain from doing, specified acts or acts of a specified kind. |
| 4 | to alter a constituent document of an entity as mentioned in paragraph 40(2)(e) or subparagraph 55D(2)(a)(iii) | specified persons to do within a specified period, or refrain from doing, specified acts or acts of a specified kind. |
| 5 | to start: | the person who started the business to dispose of the business within a specified period to one or more persons who are not associates of the person. |
| (a) | an Australian business, and that action was taken by a foreign person who is not a foreign government investor; or | |
| (b) | a national security business | |
| 6 | to enter or terminate a significant agreement with an Australian business | specified persons to do within a specified period, or refrain from doing, specified acts or acts of a specified kind. |
| 7 | to acquire an interest in Australian land | the person who acquired the interest to dispose of that interest within a specified period to one or more persons who are not associates of the person. |
| 8 | to take any significant action prescribed by regulations made for the purposes of section 44 | a specified person to do a thing prescribed by regulations made for the purposes of this item. |
Orders made under table item 7
79E(3)
Without limiting item 7 of the table in subsection (2): (a) a foreign person is taken to have acquired an interest in Australian land if the person becomes (with or without the knowledge of the person) a beneficiary in a trust that consists of or includes the interest; and (b) if the trust is a discretionary trust - a reference to the disposal of the interest of the foreign person is a reference to the disposal of any assignable benefits in relation to that trust that may ultimately vest in that foreign person.
Orders made under table items 2, 3, 4 or 6
79E(4)
Before the end of a period specified in an order made under any of items 2, 3, 4 or 6 of the table in subsection (2) (or that period as extended under a previous application of this subsection), the Treasurer may, in writing, extend the period. The order has effect as if the period as extended had been specified in the order.
Automatic revocation of no objection notification or notice imposing conditions
79E(5)
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 .
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.