Foreign Acquisitions and Takeovers Legislation (Transitional) Rule 2015

Administered by Department of the Treasury

Legislation au F2015L01884 Rules Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by authority of the Treasurer

Foreign Acquisitions and Takeovers Legislation Amendment Act 2015

Foreign Acquisitions and Takeovers Legislation (Transitional) Rule 2015

Item 13 of Schedule 3 to the Foreign Acquisitions and Takeovers Legislation Amendment Act 2015 (Amending Act) provides that the Treasurer may, by legislative instrument, make rules prescribing matters of a transitional nature (including prescribing any saving or application provisions) relating to the amendments or repeals made by the Amending Act.

The primary purpose of the Foreign Acquisitions and Takeovers Legislation (Transitional) Rule 2015 (Rule) is to ensure that the following time limits will apply:

  • where an application was made under Australia’s Foreign Investment Policy before the commencement of the Amending Act, the Treasurer must make an order or a decision in relation that application within 30 days of the commencement of the Amending Act (or such further period as requested by the person in writing – the period so extended); and
  • where a person applied for a certificate under paragraph 3(e), (h) or (r) of the Foreign Acquisitions and Takeovers Regulations 1989 before the commencement of the Amending Act and a decision on that application was not made by commencement, the Treasurer must make a decision on the application within 30 days of the commencement of the Amending Act (or such further period as requested by the person in writing – the period so extended).

Details of the Rule are set out in Attachment A.

The Statement of Compatibility is set out in Attachment B.

The Rule is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

While the Department of the Treasury (Treasury) did not release an exposure draft of the Rule for public comment, Treasury undertook significant consultation more generally on the foreign investment reforms package, which this Rule supports. Treasury did release exposure drafts of the Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015 (the Act that prescribes the rule making power for this Rule) and the associated regulation (Foreign Acquisitions and Takeovers Regulation 2015). The Rule is minor in nature as it only prescribes machinery related transitional provisions for the Act under which the Rule is made.

The Rule commences the later of the day after the Rule is registered and immediately after the commencement of Schedule 3 to the Amending Act.


ATTACHMENT A

Section 1 — Name

The title of the instrument is the Foreign Acquisitions and Takeovers Legislation (Transitional) Rule 2015.

Section 2 — Commencement

The whole of the instrument commences the later of the day after the instrument is registered and immediately after the commencement of Schedule 3 to the Amending Act.

Section 3 — Authority

The instrument is made under the Amending Act.

Section 4 — Definitions

This section defines the meaning of terms used in the instrument.

Section 5 — Notices given under the Policy before commencement

Notices given under Australia’s Foreign Investment Policy (Policy) are not subject to statutory time limits. Typically an administrative deadline has been applied. Where a person has given a notice under the Policy before the commencement of Schedule 1 to the Amending Act, the notice will, after the commencement, be taken to be a notice that a significant action (that is not a notifiable action) is proposed to be taken. The effect of section 5 of the Rule is to ensure that the time limit for making orders and decisions applies to these applications. The Treasurer will have 30 days after the commencement of Schedule 1 to the Amending Act to make a decision about that significant action (or the decision period as so extended at the request in writing of the foreign person who gave the notice).

There is no fee involved.

Section 6 — Applications made before commencement

Applications under paragraphs 3(e), (h) and (r) of the Foreign Acquisitions and Takeovers Regulations 1989 (old regulations) before the commencement of Schedule 1 to the Amending Act were not subject to statutory time limits. For applications for Advanced Off‑The‑Plan (AOTP) certificates, annual program certificates, and Integrated Tourism Resort (ITR) certificates typically an administrative deadline has been applied. Where a person has submitted an application for an exemption certificate under paragraphs 3(e), (h) or (r) of the old regulations and a decision on the application was not made before the commencement of Schedule 1 to the Amending Act, the Treasurer may give an exemption certificate under sections 57 or 58 of the Amending Act. The effect of subsection 6(2) of the Rule is to ensure that the time limit for making a decision about an exemption certificate will apply to these applications. The Treasurer will have 30 days after the commencement of Schedule 1 to the Amending Act to decide whether to give an exemption certificate in these circumstances (or a further period as extended if the foreign person who made an application requesting in writing an extension).

There is no fee involved.

 


ATTACHMENT B

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Foreign Acquisitions and Takeovers Legislation (Transitional) Rule 2015

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The primary purposes of the Foreign Acquisitions and Takeovers Legislation (Transitional) Rule 2015 (Rule) is to ensure that the following time limits will apply:

  • where an application was made under Australia’s Foreign Investment Policy before the commencement of the Amending Act, the Treasurer must make an order or a decision in relation that application within 30 days of the commencement of the Amending Act (or such further period as requested by the person in writing); and
  • where a person applied for a certificate under paragraph 3(e), (h) or (r) of the Foreign Acquisitions and Takeovers Regulations 1989 before the commencement of the Amending Act and a decision on that application was not made by commencement, the Treasurer must make a decision on the application within 30 days of the commencement of the Amending Act (or such further period as requested by the person in writing).

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

Overview

The Foreign Acquisitions and Takeovers Legislation (Transitional) Rule 2015 was enacted to provide transitional provisions related to the Foreign Acquisitions and Takeovers Legislation Amendment Act 2015. This rule ensures that any applications made under Australia’s Foreign Investment Policy before the commencement of the Amending Act are processed within a specified timeframe. Specifically, the Treasurer must make an order or decision in relation to such applications within 30 days of the commencement of the Amending Act, or any further period as requested in writing by the applicant. Similarly, for applications for exemption certificates under certain paragraphs of the Foreign Acquisitions and Takeovers Regulations 1989, which were submitted before the commencement of the Amending Act and for which a decision had not been made, the Treasurer must make a decision within 30 days of the commencement of the Amending Act, or any further period as requested in writing. The rule was made under the authority of the Treasurer and aims to maintain the integrity and continuity of the foreign investment regulatory process during the transition to new legislative amendments.

Scope and Application

The Foreign Acquisitions and Takeovers Legislation (Transitional) Rule 2015 is a legislative instrument made under the Foreign Acquisitions and Takeovers Legislation Amendment Act 2015. This rule applies to applications made under Australia's Foreign Investment Policy before the commencement of the amending act, as well as applications for certain exemption certificates under the Foreign Acquisitions and Takeovers Regulations 1989 that were submitted prior to the commencement of the amending act but did not receive a decision. The rule applies on a national level, and its purpose is to establish time limits for the Treasurer to make orders or decisions on these applications within 30 days of the commencement of the amending act, or a further period as requested by the person in writing. The rule does not apply to any other applications or decisions under the foreign investment policy or regulations. The rule is considered minor in nature, as it only prescribes transitional provisions related to the amending act, and it does not involve any fees. The rule is compatible with human rights as it does not raise any human rights issues.

Key Provisions

The Foreign Acquisitions and Takeovers Legislation (Transitional) Rule 2015 provides transitional measures related to the amendments made by the Foreign Acquisitions and Takeovers Legislation Amendment Act 2015. Specifically, section 5 of the Rule ensures that any notice of a significant action proposed under Australia’s Foreign Investment Policy, given before the commencement of the Amending Act, will be subject to a statutory time limit for the Treasurer to make an order or decision. If such a notice was made, the Treasurer must decide on the matter within 30 days of the commencement of the Amending Act, or within any extended period requested in writing by the foreign person. Similarly, section 6 of the Rule applies a time limit for decisions on applications for certain types of certificates under the Foreign Acquisitions and Takeovers Regulations 1989 that were submitted before the commencement of the Amending Act. If a decision was not made before the commencement, the Treasurer must decide on the application within 30 days of the commencement, or within any extended period requested in writing by the applicant. The Rule imposes specific obligations on the Treasurer, who must decide on applications for significant actions and exemption certificates within a stipulated timeframe. These obligations are clear and designed to ensure timely processing of applications that were pending at the time of the legislative changes. The Rule also provides for the possibility of extending the decision period if the applicant requests it in writing. Additionally, the Rule ensures that no fees are involved in these processes. Failure to comply with the time limits set out in the Rule may have legal consequences. Although the Rule itself does not explicitly state penalties for non-compliance, the overarching legislation and regulations could impose fines or other sanctions for delays in decision-making that affect the processing of foreign investment applications. Under the Foreign Acquisitions and Takeovers Act 1975, penalties for non-compliance can include substantial fines, and in severe cases, criminal charges. The exact penalties would depend on the nature and severity of the breach, but they underscore the importance of adhering to the prescribed timelines.

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Foreign Investment Law
Instrument
Legislative Instrument
Concepts
Definitions & Interpretation
Transitional Provisions
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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.