The Foreign and Investment Review Board (FIRB) has just released a new foreign investment policy, which sets out its approach when assessing foreign investment applications under the Foreign Acquisitions and Takeovers Act 1975. Among other things, the policy defines the term 'foreign governments and their related entities', and outlines the factors FIRB will take into account when considering if a proposed investment is contrary to Australia's national interest.

All foreign governments and their related entities are required to seek FIRB approval before making a direct investment in Australia, regardless of the value of the investment. In contrast, foreign persons who are not controlled by foreign governments and their related entities must only seek FIRB approval to acquire an interest of 15 percent or more in an Australian business or corporation that is valued above AUD $231 million. US investors are subject to a higher threshold of AUD $1,004 million.

Further details are available at Mondaq.