Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Hansard source

I thank Senator Williams for the question and acknowledge his longstanding interest in this issue.

The coalition government has been taking a number of steps to increase scrutiny and transparency of foreign investment in Australian agriculture. We understand that investment in Australian agriculture, both domestic and foreign, is vital for growth, innovation and regional development; as a result, we welcome it. We also understand that the Australian community must have confidence that this investment is in our national interest and will provide flow-on benefits for farmers and regional communities, as well as for the national economy and the Australian people.

As of yesterday, the FIRB scrutiny threshold for private sector foreign purchases of agricultural land will be reduced from the current level of $252 million down to $15 million. The $15 million threshold is also cumulative, meaning that a private sector foreign investor will not be able to purchase an $8 million property one day and a $7 million property the next day without approval from the FIRB. At the same time, all foreign investment proposals for agricultural land from government related entities will require FIRB scrutiny and approval, regardless of value.

The government is also in the process of establishing a foreign ownership register of agricultural land within the Australian Taxation Office, regardless of value, from 1 July 2015. The ATO will also commence a stocktake of existing agricultural land ownership by foreign interests. In the recently signed free trade agreements with China, Japan and Korea, there are provisions for Australia to apply lower thresholds to private sector proposals to invest. (Time expired)