House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Foreign Affairs, Senator the Honourable Marise Payne)

General outline and financial impact

GENERAL OUTLINE

1. This Bill makes consequential amendments necessary to support the implementation of the scheme proposed to be established by the Australia's Foreign Relations (State and Territory Arrangements) Bill 2020 (the Foreign Relations Bill).

2. The Foreign Relations Bill will establish a legislative mechanism for the Minister, on behalf of the Commonwealth, to assess and manage the effect of arrangements between State/Territory entities and foreign entities on Australia's foreign relations and foreign policy.

3. Under that Bill, State/Territory entities cannot negotiate, enter, vary, or continue to give effect to arrangements with foreign entities where the Minister is satisfied that the relevant arrangement would adversely affect Australia's foreign relations or would be inconsistent with Australia's foreign policy.

4. This Bill makes consequential amendments to the Administrative Decisions (Judicial Review) Act 1977 (the ADJR Act) to list the Foreign Relations Bill as a law to which the ADJR Act does not apply. The effect of this will be that decisions made under the Foreign Relations Bill will not be subject to review under the ADJR Act.

5. This is necessary because the decisions made under the Foreign Relations Bill will involve complex political considerations relating to Australia's foreign policy and foreign relations. These indicia are within the remit of the Commonwealth Government and Minister for Foreign Affairs to determine and manage. As such, it is inappropriate for these decisions to be open to judicial review under the ADJR Act.

6. In addition, this Bill makes the necessary consequential amendment to the Foreign Acquisitions and Takeovers Act 1975 (the FATA) to ensure that information under that scheme can be shared for the purposes of the Foreign Relations Bill.

7. This amendment reflects that there may be an intersection or overlap between arrangements which are subject to the regulatory frameworks in the Foreign Relations Bill and the FATA. Effective and efficient information sharing between the Commonwealth entities responsible for administering these schemes will support a coordinated approach to managing arrangements between the entities regulated by these schemes, including States and Territories and foreign governments.

FINANCIAL IMPACT

8. This Bill will have nil or an insignificant financial impact on Commonwealth Government departments and agencies.