Lucy Wicks (Robertson, Liberal Party) Share this | Hansard source

I also thank the parliamentary secretary for his contribution. I am pleased to be able to rise in support of this important package of bills: the Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015, the Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 and the Register of Foreign Ownership of Agricultural Land Bill 2015. This legislation implements the government's firm commitment to strengthening Australia's foreign investment framework to build on the integrity of our foreign investment framework and ensure that Australia maintains a welcoming environment for investment that is in our national interest.

The coalition government wants to increase scrutiny and transparency around foreign investment, reduce red tape and ensure that Australia is open for business, and this package of legislation helps do just that. It is about making Australia's foreign investment framework more modern, simpler and better targeted to changing demands and the expectations of communities like ours on the Central Coast. Of course, we want investment that boosts Australia's economy, creates new jobs and unlocks innovation. We welcome investment because it provides additional capital for economic growth, it provides employment opportunities, it improves consumer choice and it promotes competition. It can also lead to new technologies and infrastructure by allowing access to global supply chains and markets, enhancing our skills base. Simply, without foreign investment, Australian production, employment and income would be lower. But we need greater certainty and clearer legislation.

These bills represent the most significant overhaul of the Foreign Acquisitions and Takeovers Act since its introduction 40 years ago. I understand this issue was raised through the work of the House economics committee, which looked at the issue of a lack of compliance and enforcement of residential real estate rules, which was potentially undermining the overall integrity of the foreign investment framework. But before I go into detail about what this package of bills means, I would like to acknowledge and share with the House some of the many letters I have received from members of my community on the Central Coast. In recent months many people on the Central Coast have raised with me their concern about the house prices we are seeing in our region. For so many of us—not only on the Central Coast, but indeed right around Australia—the great Australian dream has always been to own our own home. But I know many parents are asking: how do we make sure that our kids can afford it? They see some of these house prices, they see some of the challenges and they watch their children trying to raise a deposit for a home price that seems increasingly out of reach. As somebody who has recently purchased a home on the Central Coast, I too have watched the house prices increase, even over the last couple of years.

But young Coasties are increasingly asking: how am I going to buy my own home? We know the house prices we are seeing, particularly on the Coast, are of course because people see the incredible attractiveness and the uniqueness of the region I live in. I think it is one of the most beautiful places in the best country in the world to live in. I spoke on air about this issue with the Sea FM breakfast radio team, Byron and Kristie, a little while ago. It was clear from the chat we had then that this conversation about housing affordability and owning your own home on the Central Coast is a really important conversation to have.

What are people in my electorate saying to me? Patrick and his family, from Daleys Point, wrote to me saying they have urged the government to act on this issue in the best interests of people. Lyn, from East Gosford, said the government should move quickly, and that her search for a home on the Central Coast had become, in her words, 'heartaching', because she felt she could no longer compete. Brendan from Tascott said to me—bluntly, but quite respectfully—that the ability of every Australian to own their own home is fast disappearing. Geoff from Koolewong said he wanted the government to use all its resources to check that purchases are above board. Terry at Phegans Bay said simply: 'This is a fundamental matter for my children and my grandchildren,' which is why he saw it as so important. So it is great to report to my constituents and, indeed, to people on the Central Coast, that not only are we debating these important measures today but we are already seeing our approach working. While we recognise that many factors contribute to inflated house prices, illegal foreign ownership of residential real estate is undoubtedly one of those many factors, and the government is pleased to be clamping down in this area.

I am advised that this morning there has been an announcement—the Australian Taxation Office is now investigating over 500 residential properties held by foreign owners, including multi-million dollar homes purchased by students with no income. The properties now under investigation are believed to have a total value of more than $1 billion, and I am advised that the Treasurer has signed several further divestment orders for properties ranging in value from $265,000 to $8.1 million. The foreign investors who are involved either purchased established property without Foreign Investment Review Board approval or had approval but their circumstances changed, meaning they were breaking the rules.

This is practical, significant change that we are seeing in action. Our approach will be further strengthened by this package of bills we are debating today. We are doing this so that everybody plays by the rules and, to ensure that there is integrity in the system, we need to do better at compliance. This package of bills introduces additional and stricter civil and criminal penalties to ensure foreign investors and intermediaries do not profit from breaking the rules. The Australian Taxation Office will be handed the responsibility for regulating foreign investment in residential real estate, which will further enable stronger enforcement, audit and compliance of the existing rules. The bill enables the lowering of screening thresholds for investments in agriculture to ensure significant investments in this sector are scrutinised. We are introducing fees on all foreign investment applications from 1 December this year which will make sure taxpayers are no longer funding the administration of the system, while providing additional resourcing to Treasury and the Australian Taxation Office to improve service delivery for investors.

To complement these changes we are establishing a register of foreign ownership. Again, this will be operated by the Australian Taxation Office. I am advised that the government has provided $47.5 million over four years to the ATO for this process, unlocking the tax office's ability to cover more than 600 million transactions annually. And it has already been shown to be working. I am advised that, since May, over 3,000 pieces of information relating to suspected breaches have come to light via data matching with third party sources including the Foreign Investment Review Board, Immigration, AUSTRAC and state and territory land title offices. Through the information provided by the public, together with our own inquiries, we now have 481 cases under active investigation. Foreign investors will also be required to register essential information about their existing holdings and subsequent acquisitions of Australian agricultural land. This will deliver greater transparency around foreign investment in agriculture.

I am advised that industry consultation has occurred throughout the policy development process and the drafting of this legislation, including releasing exposure drafts of the relevant bills.

On top of the new compliance powers we are giving to the ATO and additional powers being given to the Foreign Investment Review Board, the government are ensuring that Australians can have confidence that our foreign investment framework will be effectively enforced. I am pleased to be able to say that the government has already taken active steps to enforce the existing rules and act decisively on foreign investment breaches.

Criminal penalties will be increased from $90,000 to $135,000 for individuals and will be supplemented by civil pecuniary penalties and infringement notices for less serious breaches. Third parties like real estate agents, migration agents, conveyancers and lawyers who knowingly assist a foreign investor to breach the rules will also be subject to civil and criminal penalties.

Our approach also includes an amnesty period to encourage those who are in breach to come forward and self-report. Part of this is a reduced penalty period for foreign investors who come forward and self-report noncompliance before 30 November this year.

This bill also implements the government's commitment to lower the screening thresholds for investments in our agriculture. Since March, the screening threshold for foreign purchases of agricultural land has been lowered from $252 million to $15 million. The government is also introducing a $55 million threshold for direct interests in agribusiness from December.

This is a very important issue for many people in my electorate. I have had many conversations with people at 'listening posts', when I am out talking to members of my community in my electorate; when I talk to people over the phone; and when I speak at meetings around my electorate. I have to say that there is very strong support for what the government is doing in relation to this. I am very pleased to say that next month we will be holding a very important forum on this particular topic in my electorate.

In conclusion, I want to stress that we do want to see investment in Australia. We want Australia and Australian businesses to be able to grow, to thrive, to prosper and to succeed, and we want our Australian businesses to be able to create even more jobs and more opportunities for our future. May I just say that that is why I support the government's important China-Australia Free Trade Agreement. Under this landmark agreement, more than 95 per cent of our exports to China will become entirely duty free. This applies to wine tariffs of up to 30 per cent, beef tariffs up to 25 per cent, seafood tariffs to 15 per cent, dairy tariffs of 20 per cent and tariffs on our lamb, our cheese and our services, as well as our resources. For the minerals sector, for example, including the elimination of all coal tariffs, it is a boost of around $600 million.

This export agreement with China means more jobs and more growth for Australia—and for my electorate of Robertson and the Central Coast region—for decades to come. It delivers access for Aussie exports to this immense market, the biggest in Asia and home to 22 per cent of the world's people, yet Labor and the CFMEU persist in an ill-informed scare campaign. But I am pleased to say that people in my electorate do not buy this scare campaign. People in my electorate say to me overwhelmingly that the No. 1 issue they see is the opportunity to provide more local jobs, more opportunity for our young people and more opportunity for the 30,000 commuters who leave early every morning and return home to their families late at night from Sydney or Newcastle because that is where currently they find the job opportunities. I know that; my husband is one of them. So I am really passionate about opportunities to create more local jobs in my electorate on the Central Coast, and I have to say that the China-Australia Free Trade Agreement does just that.

I commend these bills to the House.

See this speech in context