COMMONWEALTH OF AUSTRALIA
Foreign Acquisitions and Takeovers Act 1975
ORDER UNDER SUBSECTION 69(2)
WHEREAS --
(A) Stefan Bockisch acquired an interest in Australian land situated at
36 Smoult Drive Melton, VICTORIA 3777, also known as 36 Smoult Drive Kurunjang, VICTORIA 3777, (the land) in 2011;
(B) I am satisfied that Stefan Bockisch’s acquisition of an interest in the land was a significant action that was taken before 1 December 2015 (see item 6(1) of Schedule 3 to the Foreign Acquisitions and Takeovers Legislation Amendment Act 2015 and also section 43 of the Foreign Acquisitions and Takeovers Act 1975 (FATA));
(C) I am satisfied that the result of that significant action is contrary to the national interest; and
(D) I am also satisfied that the Treasurer would have had the power to make an order under subsection 21A(4) of the FATA (as it was immediately after Stefan Bockisch acquired an interest in the land) on the following basis:
- Stefan Bockisch was a foreign person who acquired an interest in Australian urban land; and
- I am satisfied that the acquisition of that interest was contrary to the national interest.
NOW THEREFORE
I, ELIZABETH HARDCASTLE, Assistant Commissioner at the Australian Taxation Office, hereby make an order in accordance with item 7 of the table in subsection 69(2) of the FATA, directing Stefan Bockisch to DISPOSE of his interest in the land, by midnight (Canberra time) 6 months from the date that this order commences, to one or more persons who are not his associates.
This order commences on the day that is 30 days after it is registered on the Federal Register of Legislation.
Dated 1/2/2017
Elizabeth Hardcastle
Assistant Commissioner, Australian Taxation Office
Overview
The Foreign Acquisitions and Takeovers Act 1975 (FATA) was enacted to regulate and oversee significant foreign acquisitions and takeovers in Australia, aiming to protect the national interest. The Act allows the Australian Government to review and, if necessary, block foreign acquisitions that could potentially harm national security or other critical areas. The FATA was introduced to address the problem of uncontrolled foreign acquisitions that might pose a risk to Australia's sovereignty and economic stability. This notifiable instrument, F2017N00006, issued under subsection 69(2) of the FATA, demonstrates the application of the Act in a specific case. The order was made by Elizabeth Hardcastle, Assistant Commissioner at the Australian Taxation Office, who was satisfied that Stefan Bockisch's acquisition of an interest in Australian land was contrary to the national interest and thus required disposal as per the policy objective outlined in the FATA. The order mandates Stefan Bockisch to dispose of his interest in the specified land within six months to a person or persons not associated with him.
Scope and Application
The Foreign Acquisitions and Takeovers Act 1975 (FATA) applies to the acquisition of interests in Australian land and businesses by foreign persons and entities, where such acquisitions are deemed contrary to the national interest. This Act is a Commonwealth statute, thus it applies nationwide across Australia, encompassing all states and territories. It specifically targets foreign persons or entities engaging in acquisitions that could negatively affect national security, infrastructure, or other critical areas. Notably, the Act includes certain exclusions and exemptions, such as acquisitions under a specific threshold amount and those involving particular entities like certain government instrumentalities. The application of the Act can be extended or restricted through subordinate instruments, such as regulations and determinations, which can further define what constitutes a "significant action" or outline additional exemptions. In the specific case noted, Stefan Bockisch, a foreign person, was directed to dispose of his interest in Australian urban land within a stipulated timeframe due to the acquisition being deemed contrary to the national interest.
Key Provisions
The main operative sections of this order (subsection 69(2)) direct Stefan Bockisch to dispose of his interest in specified Australian land within a set timeframe. The land in question is located at 36 Smoult Drive, Melton, Victoria, and Stefan Bockisch is required to divest this interest by midnight (Canberra time) six months after the order commences. The disposal must be to one or more persons who are not his associates, as defined under the Foreign Acquisitions and Takeovers Act 1975 (FATA). The order itself becomes effective 30 days after it is registered on the Federal Register of Legislation.
Under the FATA, certain acquisitions of Australian assets by foreign persons are subject to scrutiny and potential intervention if deemed contrary to the national interest. This order imposes specific obligations on Stefan Bockisch to ensure the timely and compliant disposal of his interest in the land. It mandates that he must not only sell the interest but also ensure that the purchasers are not his associates, thus preventing any indirect retention of control or influence over the property.
The Act imposes several obligations on Stefan Bockisch, including the requirement to complete the disposal of his interest in the specified land within the stipulated six-month period. Failure to comply with this directive could result in legal consequences. Additionally, the Act mandates that any sale or transfer must be to individuals or entities that are not associated with Stefan Bockisch, as per the definitions provided within the FATA.
Failure to comply with the order can lead to various civil and criminal consequences. The Foreign Acquisitions and Takeovers Act 1975 stipulates penalties for non-compliance, which may include fines and imprisonment. The maximum penalties for contravening the Act can be significant, reflecting the importance of adhering to national security and economic interests. It is crucial that Stefan Bockisch adheres to the requirements to avoid facing these severe repercussions.