Foreign Investment Reform (Protecting Australia's National Security) Act 2020 (114 of 2020)

Schedule 1   Main amendments

Part 1   Amendment of the Foreign Acquisitions and Takeovers Act 1975

Foreign Acquisitions and Takeovers Act 1975

27   After section 8

Insert:

8A Meaning of starts a national security business

(1) A foreign person starts a national security business if the foreign person starts to carry on a national security business.

(2) Despite subsection (1), if a foreign person carries on a national security business, the person does not start a national security business merely because the foreign person, alone or together with one or more persons, establishes a new entity:

(a) that carries on the same national security business; or

(b) for the purposes of acquiring interests in assets of the same national security business.

8B Meaning of starts an Australian business

(1) A foreign person starts an Australian business if:

(a) the foreign person starts to carry on an Australian business; or

(b) for a foreign person who already carries on an Australian business - the business starts a new activity that:

(i) is not incidental to an existing activity of the Australian business; and

(ii) is within a different Division under the Australian and New Zealand Standard Industrial Classification Codes from the current activities of the Australian business.

(2) Despite subsection (1), if a foreign person carries on an Australian business, the person does not start an Australian business merely because the foreign person, alone or together with one or more persons, establishes a new entity:

(a) that carries on the same Australian business; or

(b) for the purposes of acquiring interests in assets of the same Australian business.