This bill became law on Dec 5th, 2022.
Budget, tax & economy
Australia’s foreign investment fee capThe maximum amount the law allows the government to charge for foreign investment application fees. rises from $1 million to $1.045 million, which keeps the legal ceiling in step with indexed application feesThe charges paid when a foreign investor asks for approval to buy something covered by the foreign investment rules. without doubling the cap itself.
Indexed foreign investment application feesThe charges paid when a foreign investor asks for approval to buy something covered by the foreign investment rules. were about to outgrow the law’s $1 million cap, creating a mismatch between the Act and the fees set in regulationsDetailed rules made under the Act that set the actual fee amounts and other operating details.. This bill lifts the cap to $1.045 million and resets future annual indexationA built-in method for increasing the fee cap over time so it keeps pace with a chosen reference point. so the cap keeps pace from 1 July 2023.
Australia had tightened foreign investment screening in 2020 and then, in July 2022, doubled foreign investment application feesThe charges paid when a foreign investor asks for approval to buy something covered by the foreign investment rules. under regulationsDetailed rules made under the Act that set the actual fee amounts and other operating details., with public reporting estimating an extra $455 million in FIRBThe government body that reviews foreign investment applications and helps decide whether they can go ahead. fees over four years and recording a last-minute rush to file before the higher charges began. This bill was the follow-up technical step: it lifted the statutory fee capThe maximum amount the law allows the government to charge for foreign investment application fees. only to the already indexed amount of $1.045 million, reset future indexationA built-in method for increasing the fee cap over time so it keeps pace with a chosen reference point. from 1 July 2023, and became law in December 2022 so the Act and regulationsDetailed rules made under the Act that set the actual fee amounts and other operating details. stayed aligned.
The main criticism was that lifting and indexing the foreign investment fee capThe maximum amount the law allows the government to charge for foreign investment application fees. helped lock in very high FIRBThe government body that reviews foreign investment applications and helps decide whether they can go ahead. charges, which critics said could deter foreign capital and cause some deals or investments to be abandoned. That concern came mainly from investors, dealmakers and the mining sector in public commentary around the 2022 fee increases, while no party represented in the debate opposed this narrow technical bill.
Jones MP introduced this bill. It passed on the voices.
Did it become law?
Yes
Became law 05 Dec 2022
Final passage
Passed without a counted vote
Members called out ‘aye’ or ‘no’ — no individual votes were recorded.
Passage speed
88 days
From introduction to the latest recorded parliamentary step
Meaning
Australia’s foreign investment fee capThe maximum amount the law allows the government to charge for foreign investment application fees. rises from $1 million to $1.045 million, which keeps the legal ceiling in step with indexed application feesThe charges paid when a foreign investor asks for approval to buy something covered by the foreign investment rules. without doubling the cap itself.
Future annual indexationA built-in method for increasing the fee cap over time so it keeps pace with a chosen reference point. of the foreign investment fee capThe maximum amount the law allows the government to charge for foreign investment application fees. starts from 1 July 2023, setting the new date used for later fee increases.
The law resets the indexationA built-in method for increasing the fee cap over time so it keeps pace with a chosen reference point. formula to use 31 March 2022 as the base point, changing how later fee-cap increases are calculated.
Foreign investment application feesThe charges paid when a foreign investor asks for approval to buy something covered by the foreign investment rules. and the legal cap on those fees are kept aligned, reducing the risk that the regulationsDetailed rules made under the Act that set the actual fee amounts and other operating details. and the Act drift apart over time.
updates the fee cap from $1 million to $1,045,000 to reflect the current indexed amount; [Schedule 1, item 1, subsection 6(3)of the FATA Fees Act]Foreign Acquisitions and Takeovers Fees Imposition Amendment explanatory memorandum
updates the indexation date to 1 July 2023; and[Schedule 1, item 2, subsection 7(1)of the FATA Fees Act]Foreign Acquisitions and Takeovers Fees Imposition Amendment explanatory memorandum
updates the denominator in the indexation factor formula to refer to 31 March 2022. [Schedule 1, item 3, subsection 8(1) of the FATA Fees Act]Foreign Acquisitions and Takeovers Fees Imposition Amendment explanatory memorandum
As part of the Government’s commitment to double foreign investment fees and penalties, amendments have recently been made to the Foreign Acquisitions and Takeovers Fees Imposition Regulations 2020 to double the fee amounts. The doubled fee amounts incorporated the cumulative total of indexation prior to the doubling. The FATA Fees Bill amends the FATA Fees Act to incorporate the cumulative total of the indexation for the same time period into the fee cap amount (but the fee cap is not doubled). This avoids the mathematical possibility of slight divergences in indexation between the FATA Fees Act and the Foreign Acquisitions and Takeovers Fees Imposition Regulations 2020 and ensures a consistent and coherent indexation process for all fee amounts in Australia’s foreign investment framework.Foreign Acquisitions and Takeovers Fees Imposition Amendment explanatory memorandum
Context
Australia had tightened foreign investment screening in 2020 and then, in July 2022, doubled foreign investment application feesThe charges paid when a foreign investor asks for approval to buy something covered by the foreign investment rules. under regulationsDetailed rules made under the Act that set the actual fee amounts and other operating details., with public reporting estimating an extra $455 million in FIRBThe government body that reviews foreign investment applications and helps decide whether they can go ahead. fees over four years and recording a last-minute rush to file before the higher charges began. This bill was the follow-up technical step: it lifted the statutory fee capThe maximum amount the law allows the government to charge for foreign investment application fees. only to the already indexed amount of $1.045 million, reset future indexationA built-in method for increasing the fee cap over time so it keeps pace with a chosen reference point. from 1 July 2023, and became law in December 2022 so the Act and regulationsDetailed rules made under the Act that set the actual fee amounts and other operating details. stayed aligned.
Foreign investment screening changes lift FIRBThe government body that reviews foreign investment applications and helps decide whether they can go ahead. fee pressure
AFR reported that the Morrison government was changing fees for all foreign investment applications after lowering to zero the dollar threshold for bids that had to be screened.
Australian Financial Review ↗Government moves to double foreign investment application feesThe charges paid when a foreign investor asks for approval to buy something covered by the foreign investment rules.
Public reporting said Treasurer Jim Chalmers was implementing Labor's election promise to double fees, with foreign investors expected to pay an extra $455 million in FIRBThe government body that reviews foreign investment applications and helps decide whether they can go ahead. fees over four years.
Australian Financial Review ↗Investors rush to file before higher FIRBThe government body that reviews foreign investment applications and helps decide whether they can go ahead. fees start
AFR reported that more than 100 offshore investors filed applications in the final 24 hours before fees doubled to as much as $1 million, while the mining sector warned the change could deter needed capital.
Australian Financial Review ↗Government introduces the fee-cap alignment bill
The minister told Parliament the bill would keep the FATA Fees ActThe law that sets the fee rules for foreign investment applications, including the maximum amount that can be charged. cap and the fee regulationsDetailed rules made under the Act that set the actual fee amounts and other operating details. in lock step, while making clear that the fee capThe maximum amount the law allows the government to charge for foreign investment application fees. itself was not being doubled.
Hansard ↗Parliament passes the bill
Both houses passed the bill in the same form, completing the legislative step needed to lift the cap from $1 million to $1.045 million and reset future indexationA built-in method for increasing the fee cap over time so it keeps pace with a chosen reference point..
Parliamentary timeline ↗Fee-cap changes commence after Royal AssentThe final step that turns a bill passed by Parliament into an Act of law.
The Act received Royal AssentThe final step that turns a bill passed by Parliament into an Act of law. on 5 December 2022 and commenced the next day, putting the updated fee capThe maximum amount the law allows the government to charge for foreign investment application fees. and indexationA built-in method for increasing the fee cap over time so it keeps pace with a chosen reference point. settings into force.
Federal Register of Legislation ↗Legislative route
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
Referred to Committee (28/09/2022): Senate Economics Legislation Committee; Committee report (17/11/2022)
Referred to committee
APH bill page notesThe bill reached this recorded parliamentary step.
Reported from Federation Chamber
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Second reading moved
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Second reading agreed to
The bill reached this recorded parliamentary step.
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Third reading agreed to
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
The Governor-General gave Royal AssentThe final step that turns a bill passed by Parliament into an Act of law., turning the bill into an Act.
Key criticism
The main criticism was that lifting and indexing the foreign investment fee capThe maximum amount the law allows the government to charge for foreign investment application fees. helped lock in very high FIRBThe government body that reviews foreign investment applications and helps decide whether they can go ahead. charges, which critics said could deter foreign capital and cause some deals or investments to be abandoned. That concern came mainly from investors, dealmakers and the mining sector in public commentary around the 2022 fee increases, while no party represented in the debate opposed this narrow technical bill.
Parliamentary debate recorded little direct criticism of this technical alignment measure.
Higher fees could deter investment
Critics argued that by raising the legal ceiling and keeping it indexed, the bill helped entrench much higher foreign investment application feesThe charges paid when a foreign investor asks for approval to buy something covered by the foreign investment rules., increasing the risk that overseas investors would pull back, delay projects or abandon transactions because the cost of seeking approval had become too high.
Further sources
Votes
The bill passed both chambers on the voices, so there is no list of individual Aye and No votes for final passage.
House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.
Passed on the voices
In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.
Parliamentary debate
Start here — lead voices
Mr Jones supports the bill, saying it updates the foreign investment fee capThe maximum amount the law allows the government to charge for foreign investment application fees. so it stays aligned with the indexed fee rules.
Read in Hansard ↗All speeches by bloc
1 speaker · 1 support
“This bill amends the Foreign Acquisitions and Takeovers Fees Imposition Act 2015 (FATA Fees Act) to align the indexation of the fee cap under that act with the indexation of fees in the Foreign Acquisitions and Takeovers Fees Imposition Regulations 2020.”Read the full speech in Hansard ↗
Record
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
House · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
House · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
House · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Senate · Second reading moved
Second reading opened
A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.
Senate · Second reading debate
Second reading debate
The bill reached this recorded parliamentary step.
Senate · Second reading agreed to
Second reading agreed
The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.
Senate · Committee of the Whole debate
Committee of the Whole debate
The bill reached this recorded parliamentary step.
Senate · Third reading agreed to
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final step that turns a bill passed by Parliament into an Act of law., turning the bill into an Act.
Senate Economics Legislation Committee; Committee report (17/11/2022)
Referred to committee
Referred to Committee (28 Sept 2022): Senate Economics Legislation Committee; Committee report (17 Nov 2022)
APH bill page notes