Order under subsection 69(2) - Disposal of Interest - 195/803 Stanley Street, Woolloongabba, QLD

Overview

The Foreign Acquisitions and Takeovers Act 1975, enacted by the Parliament of Australia, was designed to regulate foreign acquisitions of Australian entities and prevent transactions that are contrary to the national interest. This legislation was introduced to address the problem of foreign entities acquiring significant stakes in Australian businesses and assets without proper scrutiny, which could potentially undermine national security or economic stability. The 2017 order under subsection 69(2) of the Act demonstrates the application of the Act's provisions to a specific case where Regina Roos, a foreign person, acquired an interest in Australian urban land before 1 December 2015, which was deemed contrary to the national interest. The policy objective of this order is to enforce the disposal of the acquired interest to prevent any negative impact on national interests.

Scope and Application

The Foreign Acquisitions and Takeovers Act 1975, as evidenced by the notifiable instrument F2017N00026, applies to foreign persons acquiring interests in Australian assets, particularly land, that are deemed to be contrary to the national interest. In this case, the act pertains specifically to Regina Roos, a foreign person, who acquired an interest in Australian land at 195/803 Stanley Street, Woolloongabba, Queensland. The act's jurisdictional reach is national, covering all of Australia, and it is administered by the Commonwealth. The order made under the Act mandates Regina Roos to dispose of her interest in the specified land within three months of the order's commencement. The order also specifies that the disposal must be to a person or persons who are not associates of Regina Roos. The act extends its application through subordinate instruments such as orders made under subsections like 69(2) and 21A(4), which provide the framework for actions such as the one detailed in this instrument. There are no stated exclusions or exemptions in this specific order, but the act itself includes provisions that might exclude certain acquisitions under particular circumstances.

Key Provisions

The main operative sections of the Foreign Acquisitions and Takeovers Act 1975 (FATA) as evidenced in this notifiable instrument (F2017N00026) are subsection 69(2) and item 7 of the table in subsection 69(2). These sections provide the legal basis for the order made by Antonio Marvello, Acting Assistant Commissioner at the Australian Taxation Office, requiring Regina Roos to dispose of her interest in the land situated at 195/803 Stanley Street, Woolloongabba QLD 4102. The order is made under the authority granted by the FATA, specifically referencing item 7 of the table in subsection 69(2), which empowers the Australian government to direct a foreign person to dispose of an interest in Australian land if it is deemed contrary to the national interest. The Act imposes several obligations and requirements on parties such as Regina Roos, who is identified as a foreign person with an interest in Australian land. Firstly, if the acquisition of such an interest is considered a significant action and contrary to the national interest, the Treasurer is empowered to make an order under subsection 21A(4) of the FATA. In this case, the order requires Regina Roos to dispose of her interest in the land within a specified timeframe. Additionally, the disposal must be to one or more persons who are not her associates, ensuring that the interest does not remain within a controlled or related entity, thereby mitigating potential national security risks. In terms of consequences for non-compliance with the provisions of the FATA, the Act does not explicitly outline the penalties or consequences within this specific notifiable instrument. However, the broader framework of the FATA includes provisions for enforcement and sanctions. Generally, breaches of the FATA can result in civil or criminal penalties. Civil penalties can include substantial fines, up to several millions of dollars, for individuals and corporations depending on the nature and severity of the breach. Criminal penalties can also apply, with potential imprisonment for individuals who wilfully contravene the Act. These penalties are intended to enforce compliance and uphold the national security provisions of the FATA.