Australia needs a strategic approach to foreign investment, rather than the inconsistent approach we have now. Foreign investment would be much lower if there were greater incentives for Australians to invest in their own country.
Examples of what needs to be done:
- Adapt New Zealand’s foreign investment laws which clearly set out a definition of the national interest and have lower thresholds for foreign investment approval.
- Lower the existing Foreign Investment Review Board threshold ($252 million) so that all proposed overseas transactions greater than $5 million are subject to greater scrutiny.
- Have a foreign investment register of key assets in order to promote greater transparency.