Nola Marino (Forrest, Liberal Party) Share this | Hansard source

The government is to be congratulated for its efforts to develop an accurate and effective foreign ownership register for agricultural land, as promised in the 2013 coalition election campaign. This is an issue which is important to the Forrest electorate and to the agricultural sector across Australia. Residents in Forrest—and I have heard it elsewhere around this nation—have raised this issue repeatedly over many years, and the coalition government has responded with this legislation. Sound processes, accurate information and good communication will provide confidence for both the Australian people and investors.

Of course, both domestic and foreign investment are vital to Australian agriculture. Much of the agricultural development in Western Australia has happened as a direct result of foreign investment. If we are to really take advantage of the potential growth that is available in Asia in the 21st century, foreign investment is essential. The government supports investment in our agricultural sector. There are many examples of foreign investment in agriculture that have resulted in positive outcomes for the foreign investors and also for local Australian businesses and communities, and the economy. An example in my own state of Western Australia would be the American investment in the Esperance region in the 1960s that contributed to the region developing into the prime cropping and grazing region it is today.

In being supportive of investment in agriculture, including foreign investment, we do, however, need an open and transparent foreign investment process. As a sovereign nation, it is essential to know how much foreign investment there actually is. We certainly do not oppose foreign investment; in fact, we encourage it. We just want to know where and when it is happening. Open, proper scrutiny is needed so that Australians have accurate information and a clear understanding and so that they can have trust not only in the process but in the accuracy of the information itself. It is clearly a simple way of managing misinformation as well, to help address the concerns and fears we often hear from our communities—and we do hear these concerns.

According to the Australian Bureau of Statistics and ABARES in their 2013 report, nearly 50 million hectares of Australian agricultural land had some level of foreign ownership. The area of agricultural land in Australia owned by businesses with a level of foreign ownership increased from 44.9 million hectares at 31 December 2010 to 49.6 million hectares at 30 June 2013, an increase of 4.7 million hectares. Of this 50-million hectare total, 28 million hectares were more than 50 per cent foreign owned—you can understand why people express concerns to us.

In my state of Western Australia, there are over six million hectares with some degree of foreign ownership. Over 3.5 million hectares of Western Australian agricultural land is over half foreign owned—that is, foreign controlled. If you wonder why people express concern to us, it equates to half of the area of mainland Tasmania, or equal to a country the size of Belgium. It is over twice the size of the Forrest electorate. It is more than all the land west of a line from Bunbury to Albany. We do not want to discourage foreign investment; we just simply want to identify it in an open and honest manner. Over seven million hectares of Western Australian agricultural land has some level of foreign ownership, which equates to all of mainland Tasmania. The purpose of the foreign ownership register for agricultural land is to increase transparency and provide accurate information to the community and policy makers.

This package of bills will make important changes to strengthen the integrity of Australia's foreign investment framework, ensuring Australia maintains a welcoming environment for investment that is not contrary to our national interest. I saw in an inquiry in 2012 that FIRB officials acknowledged that the current law requires overseas buyers to seek FIRB approval to buy a small city apartment but most other acquisitions, other than metro or urban properties, such as farmlands and farm businesses can be bought by anyone as long as it is less than the $244 million threshold. These changes implement the reforms announced by the government on 2 May 2015 to ensure that from 1 December 2015, Australia's foreign investment framework is more modern, simple and better targeted to changing demands and community expectations—those that I spoke about.

These changes will deliver a robust regulatory framework, increase community confidence and provide a predictable and welcoming environment for investors. They are about welcoming essential foreign investment that is not contrary to our national interest. What our communities do not want is foreign investment that simply hands over our assets without benefiting or local communities and broader economy, a reasonable request. Good foreign investment strengthens Australia's economy. It creates new jobs and it unlocks innovation. Being able to distinguish between the two is critical.

The Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015 represents the most significant overhaul of the Foreign Acquisitions and Takeovers Act 1975 since its introduction 40 years ago. No wonder the FIRB officials had some challenges in dealing with the world as it is now. It provides essential changes to simplify the system, strengthen the framework and ensure the rules are enforced. It introduces additional and stricter civil and criminal penalties to ensure foreign investors and intermediaries do not profit from breaking the rules. At that parliamentary inquiry of 2012, FIRB officials acknowledged that there are anomalies in the existing laws, which is a part of the reason why these bills are important. They admitted that no fines could be imposed on companies that did not deliver assurances made to FIRB when securing investment approvals. These bills enable the transfer to the Australian Taxation Office of responsibility for regulating foreign investment in residential real estate, which will further enable stronger enforcement, audit and compliance of the existing rules. The bill also enables the lowering of screening thresholds for investments in Australian agriculture to ensure significant investments in this sector are actually scrutinised.

The Register of Foreign Ownership of Agricultural Land Bill 2015 complements these changes by establishing a register of foreign ownership operated by the Australian Taxation Office. Foreign investors are required to register essential information about their existing holdings and subsequent acquisitions of Australian agricultural land, providing greater transparency around foreign investment in agriculture.

The Australian government welcomes good foreign investment because, as I said earlier, it certainly plays an important and beneficial role in the Australian economy. Good foreign investment provides additional capital for economic growth, creates employment opportunities, improves consumer choice and promotes healthy competition while increasing Australia's competitiveness in global markets. We just simply need to be able to tell the difference. That is what these bills before the House do. I support the bills as presented.

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