Nigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | Hansard source

Firstly, I would like to thank those senators who have contributed to this debate. 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. These reforms will ensure that, from 1 December 2015, Australia's foreign investment framework is more simple, modern and better targeted to changing demands and community expectations. With this package of bills, the government is implementing its commitment to increase security and transparency around foreign investment in agriculture, whilst also responding to concerns raised by the House economics committee that a lack of compliance in enforcement of the residential real estate rules is undermining the overall integrity of the foreign investment framework. These changes will deliver a robust regulatory framework, increasing community confidence and providing a predictable and welcoming environment for investors.

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. 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. The accompanying transfer to the Australian Taxation Office of responsibility for regulating foreign investment in residential real estate will further enable stronger enforcement and audit and compliance with the existing rules. The bill also enables the lowering of screening thresholds for investment in Australian agriculture to ensure significant investments in this sector are scrutinised.

The Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 introduces fees on all foreign investment applications from 1 December 2015. Fees on foreign investment applications will ensure Australian 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.

Finally, 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. I should reiterate that these changes are about welcoming essential foreign investment that is not contrary to our national interest—investment that strengthens Australia's economy, creates new jobs and unlocks innovation.

With this package of bills, we are fulfilling our commitments to increase scrutiny and transparency around foreign investment, reduce red tape and ensure Australia is open for business. I commend these bills to the Senate.

I ask that the question on the second reading of the bills be divided.