COMMONWEALTH OF AUSTRALIA
Foreign Acquisitions and Takeovers Act 1975
ORDER UNDER SUBSECTION 22(1)
WHEREAS —
Epping 048 Service Pty Ltd as trustee for the Epping 048 Trust is a foreign person for the purposes of section 21A of the Foreign Acquisitions and Takeovers Act 1975 (Act);
Epping 048 Service Pty Ltd has given notice under section 26A of the Act that it intends to acquire an interest in a property at 20-28 Cambridge Street, Epping NSW 2121, being Lot 1 on an unregistered plan of subdivision of Lot 100 on Deposited Plan 786799;
NOW THEREFORE, I, Robert Donelly, General Manager of the Foreign Investment and Trade Policy Division of the Treasury and authorised to make this order for and on behalf of the Treasurer, PROHIBIT, pursuant to subsection 22(1) of the Act, the proposed acquisition for ninety days after the date this interim order comes into operation (i.e. the date it is published in the Commonwealth Gazette), or the date on which notice is given that the Commonwealth Government does not object to the proposed acquisition, whichever occurs first, for the purpose of enabling consideration to be given as to whether orders should be made under subsection 21A(2) of the Act in respect of the proposed acquisition.
Dated this 15th day of January 2015
Robert Donelly
General Manager
Foreign Investment and Trade Policy Division
Overview
The Foreign Acquisitions and Takeovers Act 1975 was enacted by the Commonwealth Parliament to address concerns related to foreign ownership and control of Australian businesses and assets. The Act provides a framework for the Australian Government to review and, where necessary, prohibit or impose conditions on foreign acquisitions of Australian businesses and assets that may be detrimental to national security or the public interest. The policy objective of the Act is to safeguard Australia’s economic interests, maintain national security, and protect the public interest from potentially adverse effects of foreign acquisitions. This interim order under subsection 22(1) of the Act was issued by Robert Donelly, General Manager of the Foreign Investment and Trade Policy Division of the Treasury, to temporarily prohibit a proposed acquisition by a foreign entity, Epping 048 Service Pty Ltd as trustee for the Epping 048 Trust, of a property in Epping, NSW. The prohibition is intended to allow the Australian Government time to assess whether the acquisition should be objected to under the provisions of the Act.
Scope and Application
The Foreign Acquisitions and Takeovers Act 1975 (C2015G00093) applies to foreign persons seeking to acquire assets in Australia, including property, businesses, and other interests. The Act is enforced at the national level, meaning it has jurisdiction across the entire Commonwealth of Australia. This interim order under subsection 22(1) of the Act specifically targets Epping 048 Service Pty Ltd, which is identified as a foreign person, and prohibits the acquisition of a property in Epping, NSW for a period of ninety days or until the Commonwealth Government decides not to object, whichever is earlier. The Act extends its reach through subordinate instruments, allowing for the creation of specific orders in relation to particular acquisitions. Notably, the application of the Act can be influenced by decisions made under other sections, such as subsection 21A(2), which could lead to further regulatory actions depending on the outcome of the initial assessment.
Key Provisions
The Foreign Acquisitions and Takeovers Act 1975 (section 22(1)) allows the Treasurer to issue an interim prohibition order if they believe a proposed acquisition may be against the national security or order public interest. In this case, Robert Donelly, as General Manager of the Foreign Investment and Trade Policy Division of the Treasury, has issued such an order for the acquisition by Epping 048 Service Pty Ltd of property at 20-28 Cambridge Street, Epping NSW 2121. The order prohibits the acquisition for ninety days, starting from the date of publication in the Commonwealth Gazette, or until the government officially states that it does not object, whichever happens first. This interim prohibition allows the government time to evaluate whether further action under section 21A(2) of the Act is necessary.
The Act imposes several obligations on parties involved in acquisitions that may impact national security or the public order. Epping 048 Service Pty Ltd, as a foreign person, must notify the Treasurer under section 26A of their intention to acquire an interest in Australian property. The Treasurer, upon receiving this notice, has the responsibility to review the acquisition and determine whether to issue an interim prohibition order. Additionally, any entity subject to such an order must comply with the terms of the prohibition and refrain from completing the acquisition until the order is lifted or the review process is completed.
The Foreign Acquisitions and Takeovers Act 1975 outlines several potential consequences for breaches of its provisions. Under section 22(1), failure to comply with an interim prohibition order can result in substantial penalties. The Act does not specify exact penalties within the interim order itself but generally provides for significant fines and potential imprisonment. For instance, under section 30, any person who contravenes an order can face a fine of up to 5,000 penalty units or imprisonment for up to five years, or both. These severe penalties underscore the importance of adhering to the Act’s requirements and the potential repercussions for non-compliance.