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Australia introduces new Register of Foreign Ownership
The new Register of Foreign Ownership of Australian Assets (“the Register”) came into effect on the 1st of July 2023.
The Register replaces several existing foreign investment registers for water, agricultural and land interest maintained by the Australian Taxation Office (“ATO”).
The new Register requires foreign persons to also register certain interests in assets that were previously exempt from registration requirements (including interests in Australian media businesses, tenements, and securities in mining, production or exploration), and prescribes new requirements for these registrations.
The risk of non-compliance
Given the new requirements, combined with a new online system for registering notices, there are hopes that the ATO will take a lenient approach when monitoring compliance in the initial phase of the rollout of the Register.
However, under the Foreign Acquisitions and Takeovers Act 1975 (“FATA”), failure to comply with the Register requirements will be subject to a penalty of 250 penalty units, currently equivalent to A$68,750.