Foreign Investment in Australia

Essay by Cas_StarHigh School, 12th grade November 2002

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Foreign Investment in Australia is vitally important if Australia is to stay economically viable in terms of globalisation. It benefits the Australian economy in relation to international trading. T he injections of funds will support the economy by boosting industry as well as the increasing job security


Foreign investments are the funds invested in Australia by any other country throughout the world. Foreign investment is generally divided into to two main types; these being Direct Investment and Portfolio (Indirect) Investment. (As little as 10% is considered to be 'significant influence'). This investment comes in many forms: partners or shareholders of Australian companies, international expansion or stock acquisition when companies are floated on the stock market or undergo privatisation.

Foreign Investment is vitally important to Australia's strong economic position in terms of international trade. Australia welcomes investment, subject to certain rules and regulations. Legislation has been passed in parliament to control foreign investment and to ensure that specific criteria are met.

The federal government has established an agency to administer this legislation. The following web sites contain relevant information in relation to foreign investment in Australia.

Legislation relating to Foreign Investment

Foreign Acquisitions And Takeovers Act 1975 (Cth)

Foreign Acquisitions And Takeovers Regulations 1989 (Cth)

Foreign Acquisitions And Takeovers Amendment Regulations (No. 1) 1999 (Cth) - Explanatory Statement

Administration, Policy Etc

Foreign Investment Review Board (FIRB)

FIRB - About Us

Whilst the Australian Government actively encourages foreign direct investment (FDI), because it contributes positively to economic growth, transfers of technology and management skills, and a higher standard of living in Australia. Australia operates a 'screening' process which is transparent, very liberal, and with very few industry sectors where foreign investment is restricted. Generally speaking, proposed investments are approved unless considered contrary to the national interest. The Foreign Investment...