Treasury consults on foreign investment framework reforms

Treasury has opened a consultation to review existing conditions required for foreign investment approvals in Australia.

It said while these conditions play an important role in protecting Australia's national interest, it is important to ensure they remain necessary, effective and fit for purpose over time.

Treasury is seeking feedback from investors and stakeholders on conditions that may be ineffective, duplicate other regulatory requirements and need modernising.

"Some historical conditions may no longer align with contemporary circumstances, creating ineffective or duplicative compliance obligations," Treasury said.

"This review will help ensure the foreign investment framework remains efficient while maintaining appropriate safeguards."

In the 2026-27 Budget, the government announced a package of reforms to streamline Australia's foreign investment framework, in a bid to further improve productivity performance, including through reduced regulatory burden.

"The reforms are designed to ensure Australia's regulatory settings attract and enable low-risk investment while providing stronger, more flexible tools to manage national interest and national security risks," Treasury said.

"They reflect strong investor and other stakeholder support for reforms that reduce duplicative obligations while strengthening some clear and predictable regulation."

The government applies a range of conditions to mitigate risks, including those relating to taxation, national security, economic and community impacts and other matters relevant to the national interest.

These include tax conditions, board and governance arrangements, land development requirements, obligations relating to sensitive land or facilities, the management of sensitive data and infrastructure, and reporting requirements.

The review will initially focus on tax conditions, with other conditions to be considered following consultation.

"The review does not alter existing approval obligations and is not intended to reconsider the national interest or national security risks that informed the original approval decisions," Treasury said.

"Accordingly, submissions should focus on the effectiveness, enforceability and ongoing relevance of specific conditions, rather than merits of the underlying risk assessment or original decision to impose those conditions."

The consultation closes on September 15.