Foreign Acquisitions and Takeovers Amendment (India Free Trade Agreement) Regulations 2022 (F2022L01506)
Schedule 1 Amendments
Foreign Acquisitions and Takeovers Regulation 2015
2 At the end of section 51
Add:
(2) The following table prescribes values for the purposes of section 51 of the Act to the extent that that section relates to items 2 to 3 of the table (entities) in that section.
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Threshold value for entities |
||
|---|---|---|
|
Item |
For action taken by … |
the value (in millions of dollars) is … |
|
1 |
an enterprise, or a national, of the Republic of India (other than a foreign government investor) where: (a) the action relates to an entity that: (i) is not carrying on a sensitive business and does not hold assets of a sensitive business; and (ii) is carrying on a business that supplies a service through a commercial presence in Australia; and (b) no subsidiary, or holding entity, of the entity carries on a sensitive business or holds assets of a sensitive business; and (c) either: (i) the entity derives earnings from carrying on the business and the amount of those earnings before interest and tax, derived in the most recent financial year for which the financial accounts of the entity have been audited, exceeds 50% of the amount of the total earnings for the entity; or (ii) the entity uses assets to carry on the business and the value of those assets exceeds 50% of the total asset value for the entity |
500 |
(3) The following table prescribes values for the purposes of section 51 of the Act to the extent that that section relates to items 4 and 5 (Australian businesses) of the table in that section.
|
Threshold value for Australian businesses |
||
|---|---|---|
|
Item |
For action taken by … |
the value (in millions of dollars) is … |
|
1 |
an enterprise, or a national, of the Republic of India (other than a foreign government investor) where: (a) the action relates to an Australian business that: (i) is not a sensitive business; and (ii) supplies a service through a commercial presence in Australia; and (b) the Australian business uses assets to supply the service and the value of those assets exceeds 50% of the value of the total assets of the business |
500 |
(4) For the purposes of subsections (2) and (3), commercial presence and supply of a service have the same meaning as in the Australia-India Economic Cooperation and Trade Agreement, done at Melbourne and New Delhi on 2 April 2022, as in force from time to time.
Note: The Agreement could in 2022 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).
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