Declaration of a Substantially Australian Investment Fund SAPR 61/2023

Overview

The Airports (Ownership – Interests In Shares) Regulations 1996 were enacted to address the need for stringent oversight of foreign investment in Australian airports, ensuring that critical infrastructure remains under control that aligns with Australia's national security and economic interests. This notifiable instrument, F2023N00149, issued by Jim Betts, the Secretary of the Commonwealth Department of Infrastructure, Transport, Regional Development, Communications and the Arts, under the authority of Regulation 2.07 of the aforementioned regulations, serves to declare certain funds as Substantially Australian Investment Funds. This declaration ensures that the specified funds managed by Dexus Investment Services Pty Ltd, namely the Australia Pacific Airports Fund No. 2 and the Dexus Diversified Infrastructure Trust A, meet the criteria required to invest in Australian airport assets, thus safeguarding these vital infrastructures in alignment with the overarching policy objective of maintaining control over significant national assets.

Scope and Application

The F2023N00149 (Notifiable instrument) concerns the identification and classification of Specific Australian Investment Funds, as declared by Jim Betts, the Secretary of the Commonwealth Department of Infrastructure, Transport, Regional Development, Communications and the Arts. This declaration is issued pursuant to Regulation 2.07 of the Airports (Ownership – Interests in Shares) Regulations 1996. The Act applies to entities managing specific funds, namely Australia Pacific Airports Fund No. 2 and Dexus Diversified Infrastructure Trust A, which are managed by Dexus Investment Services Pty Ltd. The jurisdictional reach of this legislation is Commonwealth, and it is applicable to the entities and funds specified within its purview. No exclusions, exemptions, or thresholds are explicitly stated within the text, and the application of the Act may be extended or restricted through subordinate instruments as deemed necessary by the relevant authorities.

Key Provisions

The legislation, F2023N00149, specifically section 1, declares that certain funds managed by Dexus Investment Services Pty Ltd are Substantially Australian Investment Funds. This declaration, made by Jim Betts, the Secretary of the Commonwealth Department of Infrastructure, Transport, Regional Development, Communications and the Arts, identifies the Australia Pacific Airports Fund No. 2 and the Dexus Diversified Infrastructure Trust A as qualifying funds (section 1). The declaration is based on the criteria outlined in Regulation 2.07 of the Airports (Ownership – Interests in Shares) Regulations 1996, ensuring that these funds meet the necessary requirements to be considered substantially Australian. Under the Act, Dexus Investment Services Pty Ltd, as the manager of these funds, must adhere to the criteria and conditions set forth by the declaration. This includes ensuring that the funds maintain their status as substantially Australian by meeting the ongoing requirements and reporting obligations as stipulated by relevant legislation and regulations (section 2). The declaration imposes a responsibility on the fund managers to keep accurate records and to report any changes that might affect the status of the funds. Failure to comply with the provisions of the declaration or the underlying regulations could result in serious consequences. Any breaches of the declaration or the regulations could be considered an offence, potentially leading to civil or criminal penalties. The exact nature and severity of these penalties would depend on the specific circumstances and the relevant legislative provisions, but they could include fines, revocation of the fund's status, or other administrative actions as deemed necessary by the relevant authorities (section 3). It is imperative that Dexus Investment Services Pty Ltd and the funds it manages remain vigilant in adhering to these requirements to avoid any adverse legal repercussions.