Order under section 67 - Ju-Lien Low and Chin Siong Chow

Overview

The Foreign Acquisitions and Takeovers Act 1975 was enacted to regulate and control foreign investments in Australia to ensure they are not detrimental to the national interest. The Act empowers the Treasurer to prohibit or impose conditions on acquisitions by foreign persons, which can include individuals, entities, or governments outside Australia. The 1975 Act was introduced to address the problem of unchecked foreign investments that could potentially compromise national security, economic stability, and public order. Enacted by the Parliament of Australia, the Act's policy objective is to safeguard Australia's strategic assets, critical infrastructure, and sensitive technologies from potentially hostile foreign entities. In this particular case, the Acting Division Head of the Foreign Investment and Trade Policy Division within the Department of the Treasury has exercised the powers under section 67 of the Act to prohibit the proposed acquisition of Australian land by foreign persons Ju-Lien Low and Chin Siong Chow, deeming it contrary to the national interest.

Scope and Application

The Foreign Acquisitions and Takeovers Act 1975 applies to foreign persons who propose to acquire interests in Australian land, with the legislation aiming to protect Australia's national security and economic interests. In this instance, the Act applies to Ju-Lien Low and Chin Siong Chow, who are identified as foreign persons seeking to acquire an interest in land at 85 Clayton Road, Oakleigh East, Victoria. The prohibition order issued under section 67 of the Act demonstrates the Commonwealth's jurisdiction over foreign acquisitions that are deemed contrary to national interests. The Act provides the Treasurer with the authority to prohibit acquisitions through orders, which can be further extended or restricted through subordinate instruments. Notably, this order is specific to the proposed acquisition by Ju-Lien Low and Chin Siong Chow, and does not set a broader precedent for similar acquisitions unless additional orders are issued.

Key Provisions

The Foreign Acquisitions and Takeovers Act 1975 (the Act) provides the framework for regulating acquisitions of Australian assets by foreign persons and entities. Section 67(1) of the Act empowers the Treasurer to prohibit acquisitions that are contrary to the national security or order. In this case, the Acting Division Head, Trevor Thomas, has exercised his delegated authority under section 67 to prohibit the proposed acquisition of an interest in the Australian land at 85 Clayton Road, Oakleigh East, Victoria by foreign persons Ju-Lien Low and Chin Siong Chow. The prohibition order is based on the determination that the acquisition would be contrary to the national interest, and it takes effect on the day of its publication in the Gazette, which in this case is 7 January 2016. Under the Act, foreign persons must provide notice of any proposed acquisition to the Treasurer and comply with any conditions imposed by the Treasurer (sections 67A and 67B). The notice must include details of the proposed acquisition and any other information required by the Treasurer. Failure to comply with the notice requirements can result in the acquisition being treated as an unauthorised acquisition (section 67D). Additionally, the Treasurer has the authority to impose conditions on the acquisition to mitigate any potential adverse effects on the national interest (section 67E). Breaching the prohibition order or failing to comply with the notice and condition requirements can result in civil and criminal penalties. Under section 143, a person who contravenes a prohibition order is liable to a penalty of up to $10,000 for each day the contravention continues. Furthermore, section 144 imposes criminal penalties for knowingly or recklessly contravening a prohibition order, with a maximum penalty of $500,000 or imprisonment for five years, or both. These stringent penalties underscore the importance of adhering to the Act's requirements and the significant consequences of non-compliance.