COMMONWEALTH OF AUSTRALIA
Foreign Acquisitions and Takeovers Act 1975
ORDER UNDER SUBSECTION 69(2)
WHEREAS --
(A) Yi Ge Zhao acquired an interest in Australian land situated at
64 Weeden Drive, Vermont South, Victoria 3133 (the land) in 2013;
(B) I am satisfied that Yi Ge Zhao’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 Yi Ge Zhao acquired an interest in the land) on the following basis:
- Yi Ge Zhao 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 Yi Ge Zhao to DISPOSE of his interest in the land, by midnight (Canberra time) 3 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 5/4/2017
Antonio Marvello
Acting Assistant Commissioner, Australian Taxation Office
Overview
The Foreign Acquisitions and Takeovers Act 1975 (FATA) was enacted by the Parliament of Australia to address the problem of foreign acquisitions and takeovers that may be contrary to the national security or economic interests of Australia. The 1975 Act provides the framework for the review and regulation of foreign acquisitions of Australian businesses, real estate, and other assets. In response to evolving national security concerns, the Foreign Acquisitions and Takeovers Legislation Amendment Act 2015 was introduced to strengthen the existing legislative measures, particularly in relation to urban land acquisitions by foreign entities. The policy objective of these legislative measures is to protect Australia's national security, economic interests, and strategic assets from potentially harmful foreign influence. This notifiable instrument, issued under the authority of the FATA, directs Yi Ge Zhao to dispose of his interest in Australian land, acquired prior to 1 December 2015, within three months to a non-associated party, as it has been determined that the acquisition is contrary to the national interest.
Scope and Application
The Foreign Acquisitions and Takeovers Act 1975 (FATA) applies to acquisitions of interests in Australian land by foreign persons and entities, with the scope extending to significant actions taken before 1 December 2015, as amended by the Foreign Acquisitions and Takeovers Legislation Amendment Act 2015. This legislation mandates that any acquisition by a foreign person of an interest in Australian land, including urban land, is subject to scrutiny if it is deemed contrary to the national interest. The geographic reach of this Act is national, with its application extending to all states and territories of Australia. The Act empowers the Treasurer to issue orders for the disposal of such interests by foreign persons if it is found that the acquisition is contrary to the national interest. This order is retroactive to actions taken before the specified date, and the authority to enforce such orders is granted through the Act's subsections, with the application potentially being extended or restricted by subordinate instruments as needed.
Key Provisions
The Foreign Acquisitions and Takeovers Act 1975 (FATA) governs foreign acquisitions of Australian assets and, in this instance, a specific order has been made under subsection 69(2) of the Act. Section 69(2) empowers the Treasurer to direct a foreign person to dispose of an interest in Australian land if the acquisition is deemed contrary to the national interest. In this case, the order directs Yi Ge Zhao to dispose of his interest in the land situated at 64 Weeden Drive, Vermont South, Victoria 3133 (subsection 69(2)(7)). This directive is based on the acquisition of the land by Yi Ge Zhao in 2013, which the Acting Assistant Commissioner has determined to be a significant action taken before 1 December 2015 (subsection 69(2)(7)). The order stipulates that Yi Ge Zhao must complete the disposal of his interest within three months from the date the order commences, and the disposal must be to one or more persons who are not his associates.
Under the Act, parties or entities governed by this order must comply with the directive to dispose of the interest in the specified land. Yi Ge Zhao is required to find a buyer who is not an associate, as defined by the Act, and complete the transaction within the three-month timeframe. Failure to comply with this order could result in further legal actions being taken against Yi Ge Zhao. The Act provides a framework for the disposal process, ensuring that the national interest is protected.
Breaching the terms of this order can have serious legal consequences. The Act does not specify a particular section for penalties in this context, but it is clear that non-compliance could lead to enforcement actions by the Australian Taxation Office or other relevant authorities. Such actions could include legal proceedings to enforce the order or other penalties as deemed appropriate by the courts. The maximum penalties for breaches of the FATA can include substantial fines and, in some cases, imprisonment. However, the specific penalties in this case would depend on the nature and severity of the breach, as well as any applicable laws or regulations at the time of the offence.