COMMONWEALTH OF AUSTRALIA
Foreign Acquisitions and Takeovers Act 1975
ORDER UNDER SUBSECTION 69(2)
WHEREAS --
(A) Luzon Holdings Pty Ltd acquired an interest in Australian land situated at
519-583 Beattys Road, Plumpton VIC 3335 (the land) in 2014;
(B) I am satisfied that Luzon Holdings Pty Ltd’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 Luzon Holdings Pty Ltd acquired an interest in the land) on the following basis:
- Luzon Holdings Pty Ltd 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, ANTONIO MARVELLO, Acting 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 Luzon Holdings Pty Ltd to DISPOSE of its interest in the land, by midnight (Canberra time) 11 months from the date that this order commences, to one or more persons who are not its associates.
This order commences on the day that is 30 days after it is registered on the Federal Register of Legislation.
Dated 5/4/2017
Antonio Marvello
Acting Assistant Commissioner, Australian Taxation Office
Overview
The Foreign Acquisitions and Takeovers Act 1975 was enacted to safeguard Australia's national security and economic interests by regulating significant foreign acquisitions of Australian businesses and assets. The Act was introduced to address the problem of foreign interests acquiring significant stakes in Australian enterprises that could potentially compromise national security or economic stability. The Foreign Acquisitions and Takeovers Act 1975 is administered by the Parliament of Australia, with the policy objective of preventing foreign acquisitions that may be detrimental to Australia's national interests. In specific cases, such as the acquisition of an interest in Australian land by Luzon Holdings Pty Ltd, the Act empowers the Treasurer to direct the disposal of the acquired interest if it is deemed contrary to the national interest. The legislation aims to ensure that such acquisitions do not adversely affect Australia's strategic or economic well-being.
Scope and Application
The Foreign Acquisitions and Takeovers Act 1975 (FATA) applies to any foreign person or foreign government acquiring an interest in Australian land, businesses, or takeovers of Australian companies. The Act's scope is broad, covering a range of acquisitions that could be deemed contrary to Australia's national interest. The legislation specifically targets acquisitions that might compromise national security, foreign policy, or economic stability. The order made under this Act in the case of Luzon Holdings Pty Ltd illustrates its application to significant actions taken before 1 December 2015. The order mandates Luzon Holdings Pty Ltd to dispose of its interest in Australian land, demonstrating the Act's jurisdictional reach, which extends to Commonwealth matters. This particular order is geographically focused on the land situated at 519-583 Beattys Road, Plumpton VIC 3335, highlighting the Act's application to specific properties within Australia. The order does not specify exclusions or exemptions but directs the disposal of the acquired interest within a defined timeframe, illustrating the Act's enforcement mechanisms. The FATA may also extend its application through subordinate instruments, allowing for further regulation and enforcement of its provisions.
Key Provisions
The key operative sections of this legislation concern the Foreign Acquisitions and Takeovers Act 1975 (FATA). Specifically, subsection 69(2) (subsection 21A(4)) is utilised to mandate Luzon Holdings Pty Ltd to dispose of its interest in the land situated at 519-583 Beattys Road, Plumpton VIC 3335. This requirement is grounded in the belief that Luzon Holdings Pty Ltd’s acquisition of an interest in the land was both significant and contrary to the national interest. The order mandates that Luzon Holdings Pty Ltd must sell its interest in the land to one or more parties that are not associates, within a specified timeframe of 11 months from the commencement of the order.
The Act imposes several obligations and requirements on Luzon Holdings Pty Ltd. Foremost, it mandates the disposal of its interest in the specified Australian land. This disposal must be completed by midnight (Canberra time) 11 months from the date the order commences. Additionally, the entities to which the interest can be sold must not be associates of Luzon Holdings Pty Ltd, as per the conditions stipulated in the legislation. These obligations are crucial to ensure compliance with the Act’s intent to protect national interests.
Furthermore, the legislation outlines potential consequences for non-compliance with the order. Breach of the order’s provisions could result in various civil or criminal penalties. While the specific penalties are not detailed in the notifiable instrument, under the FATA, non-compliance with orders regarding the acquisition of interests in Australian land can lead to significant legal repercussions. This may include fines or other penalties as prescribed by the Act, reflecting the seriousness with which the national interest in such acquisitions is regarded.