Rowan Ramsey (Grey, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on how we are ensuring foreign investment in agriculture is in Australia's national interest, and how does responsible foreign investment help boost growth and jobs?

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Grey for his question. The member for Grey's electorate, in the north of South Australia, is over 900,000 square kilometres, and 8,000 people in his electorate work in the agricultural sector. Like many people on this side of the House, he understands agriculture, and like many people on this side of the House he has farming experience.

Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

How is your hobby farm going, Joe?

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Moreton!

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

That experience is hugely important—it is well understood on this side of the House that you need foreign investment, you need capital investment, to help drive better outcomes and greater productivity right across the economy but in particular in agriculture. It is vitally important that we have integrity, and are seen to have integrity, in our foreign investment regime. Since 2012 the Prime Minister, the Deputy Prime Minister, the Minister for Agriculture and a range of other colleagues have been consulting widely with the community about how we can continue to build confidence in the foreign investment regime particularly in relation to agriculture.

Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

Don't forget Malcolm.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Moreton is warned.

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

Today the Prime Minister has announced that from 1 March this year the screening threshold for foreign investment in agricultural land will be cut from $252 million to $15 million. That cut in the threshold to $15 million is a cumulative total, so if a foreign investor currently holds $13 million of agricultural land and they make an acquisition that extends beyond $15 million, it is all triggered even though it might be less than the $15 million for a single purchase. The reason we are doing this is that it is in the national interest to better understand the levels of foreign investment in agricultural land. There is more work to be done. Following the excellent work by the Parliamentary Secretary to the Treasurer, as chair of the House of Representatives committee, we will be saying more about the overall foreign investment regime and in particular in relation to residential land and residential purchases in Australia. We will also be saying more about how we can improve the transparency of ownership of land and in particular residential land in Australia. So from 1 March the new regime begins, and I say emphatically that this is the first word and not the last word on the integrity of the foreign investment regime.