Further evidence has emerged that the Abbott Government’s increase in red tape is making Australia less attractive to foreign investors.
The Australian Food and Grocery Council has expressed concerns today that half the food processing and manufacturing sector and almost all dairy companies in Australia would be captured by the Government’s proposed changes to foreign investor rules.
The changes mean ‘agribusiness’ purchases over $55 million would require Foreign Investment Review Board (FIRB) approval.
The Government’s change to the definition of ‘investment’ could also deter existing farm or food manufacturing businesses from making new investments to upgrade their facilities.
The increase in red tape specifically targets agriculture and agribusiness – sectors which need foreign capital to take advantage of growth opportunities in our region.
Since the election the Abbott Government has imposed extensive new layers of red tape on foreign investment in Australia with a raft of new barriers and costs for international investors seeking to grow businesses and create jobs in Australia.
Despite its claim that Australia is “open for business”, the Abbott Government has also imposed $735 million in new charges for investors lodging FIRB applications.
The Abbott Government’s new rules on investment screening thresholds, fees, charges and penalties for investors run to seven pages of bureaucratic red tape.
They contain 22 different screening thresholds and categories, which vary depending on the value and type of investment and on the nationality of the investor, and 33 different levels and categories of application fees, ranging from $5,000 to $100,000.
Trade and Investment Minister Andrew Robb's red tape roll-out is making Australia a less attractive investment destination.
TUESDAY, 30 JUNE 2015
JOINT MEDIA RELEASE
SENATOR THE HON PENNY WONG
LEADER OF THE OPPOSITION IN THE SENATE
SHADOW MINISTER FOR TRADE AND INVESTMENT
LABOR SENATOR FOR SOUTH AUSTRALIA
THE HON JOEL FITZGIBBON MP
SHADOW MINISTER FOR AGRICULTURE
SHADOW MINISTER FOR RURAL AFFAIRS
SPOKESPERSON FOR COUNTRY CAUCUS
MEMBER FOR HUNTER