Government to fast track low-risk foreign investments

The government is further strengthening Australia's foreign investment framework in a bid to unlock more investment and subject higher risk proposals to more rigorous scrutiny.

This builds on the first tranche of reforms introduced in 2024.

The changes will set a new performance target to decide all low-risk applications within 30 days from the beginning of next year. It will also update and remove ineffective conditions on existing foreign investment approvals.

The government will amend the foreign investment laws to expand exemption certificates to reduce regulatory burden on low-risk investments by frequent low-risk investors.

The changes will eliminate approval requirements for some low-risk transactions, ensure more agile compliance and enforcement powers to better respond to non-compliance and increase screening requirements for targeted investments to better protect more sensitive sectors.

Treasurer Jim Chalmers said the second round of foreign investment reforms is about making improvements so the regime is stronger where risks are high and faster where risks are low.

"These reforms will increase certainty for investors and will lead to faster and fewer approvals, reduced regulatory burden, and improved tools to address high-risk investment," Chalmers said.

He added foreign investment is crucial to Australia's prosperity and the government is committed to ensuring it is in Australia's national interest as well.

"We are strengthening and streamlining Australia's foreign investment system to attract investment that drives economic growth, creates skilled jobs, and lifts competition and innovation."

Last year Treasury released a discussion paper for feedback to further streamline and strengthen the foreign investment framework.

It said the reforms will seek to ensure Australia remains an attractive destination for global capital, while managing new and evolving risks to the national interest and security in an "increasingly challenging" international environment.