Australia – Published Paper on Foreign Investment

Australia – Published Paper on Foreign Investment

On 22 June 2020, AST PROD published Australian foreign investment paper.

  • AST PROD has released a commission research paper Foreign Investment in Australia.
  • Reviewed Australian foreign investment trends, drivers, effects and government policy.

Key Points

  • Benefits the economy, but some risk that can be managed by government policy.
  • Over past 2 centuries, it has supported Australia economic development by permitting more capital investment than domestic savings would have otherwise allowed.
  • Positive impacts include new technology, improved management practice/competition, but also negatives: potentially less competition, social and environmental costs.
  • To balance benefits and risks, foreign investment regulated via several mechanisms.
  • Foreign investment policy has become more prominent, but policy change piecemeal,
  • Thresholds vary by investor country, sector and type, approval conditions use growing.


  • Publishing the reasons for blocking proposals, more timeline certainly, and aligning applications fees with actual cost of administering the screening regime.
  • Would increase transparency, enhance predictability lower screening regime costs.