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Australian gov't to drastically tighten laws regarding foreign ownership of farm land

Xinhua, February 11, 2015 Adjust font size:

The Australian government has moved to dramatically tighten laws regarding foreign ownership of agricultural land, claiming such a restriction is in the "national interest".

The Foreign Investment Review Board (FIRB) will now scrutinize any foreign purchase of Australian farm land worth 11.6 million U. S dollars, or more. Previously, that figure was 194 million U.S dollars.

The move was announced on Wednesday in a joint statement released by Australian Prime Minister Tony Abbott, Treasurer Joe Hockey and Agriculture Minister Barnaby Joyce. The changes will apply to any foreign investment in agricultural land carried out after March 1.

Speaking in Murrumbateman, just north of Canberra, Abbott said on Wednesday the plan to tighten the scrutiny on purchases by foreign owners was in the "national interest".

"The new 15 million AUD (11.6 million U.S dollars) screening threshold will apply to the cumulative value of agricultural land owned by the foreign investor, including the purposed purchase," Abbott said.

The current screening threshold for the FIRB is 194 million U.S dollars.

Abbott had hinted at the changes in his address to the National Press Club speech in Canberra last week, though he insisted on Wednesday that foreign investment in Australia was still vital to the nation's economy.

"We do want foreign investment but it's got to be the right investment that serves (the nation's) purposes," he said.

"Foreign investment always has been, and will continue to be, integral to Australia's economic success. Under this government, Australia is again open for business, as demonstrated by our landmark Free Trade Agreements with China, Japan and Korea."

The free-trade agreements with those three nations already reflect the changes imposed by the government, with thresholds for investors already reduced to the 11.6 million U.S dollar level.

Abbott also announced a stocktaking of all new foreign investments on agricultural land, so that Australia has an accurate picture of all foreign landholders.

"(The Australian Taxation Office) will be conducting a stocktake in conjunction with the states and territories titles offices to provide, over time, an ever more complete register of foreign agricultural land holdings in Australia," he said.

"These measures are a significant step in protecting Australia' s national interests and in giving the community greater confidence in our foreign investment regime."

"The government is currently considering the recommendations of the Parliamentary Committee inquiry led by Kelly O'Dwyer MP regarding foreign investment in residential real estate. There does need to be better enforcement of the rules for foreign purchases of existing homes so that young people are not priced out of the market." Endi