Order under subsection 69(2) – Disposal of Interest - 90 Cedarvale Rd, Boambee New South Wales

Overview

The Foreign Acquisitions and Takeovers Act 1975 (FATA) was enacted to address the issue of foreign acquisitions and takeovers that could potentially pose a threat to Australia's national security and economic interests. The Act empowers the Australian government to review and regulate significant foreign acquisitions of Australian assets, ensuring that such acquisitions do not compromise the nation's interests. In this instance, the Australian government, through the Assistant Commissioner at the Australian Taxation Office, has identified the acquisition by Gary Stephen Kennedy of an interest in Australian land as a significant action that was contrary to the national interest. Consequently, an order has been issued to direct Mr. Kennedy to dispose of his interest in the specified land to ensure that it is no longer under foreign control. The enactment of this order under subsection 69(2) of the FATA was executed by Elizabeth Hardcastle, the Assistant Commissioner at the Australian Taxation Office, on 7th November 2017. This action was taken to mitigate any potential national security risks associated with foreign ownership of Australian assets, thereby upholding the policy objectives of the FATA in safeguarding the nation's interests.

Scope and Application

The Foreign Acquisitions and Takeovers Act 1975 (FATA) applies to the acquisition of interests in Australian assets by foreign persons and entities, with a particular focus on transactions that may be contrary to Australia's national security or foreign policy interests. In this instance, the Act applies to Gary Stephen Kennedy, a foreign person who acquired an interest in Australian land situated at 90 Cedarvale Rd, Boambee NSW 2450, in 2001. The Act's jurisdiction extends across the Commonwealth of Australia, with its provisions applicable to any foreign person or entity attempting to acquire an interest in Australian land. The Act allows for the imposition of orders to prevent or unwind acquisitions deemed contrary to the national interest, as determined by the Treasurer. This order, made under the authority of the Assistant Commissioner at the Australian Taxation Office, mandates that Gary Stephen Kennedy dispose of his interest in the specified land within three months to a party not associated with him. This order is subject to the conditions and provisions outlined in the FATA and any relevant subordinate instruments that may further define or extend the application of the Act.

Key Provisions

The main operative sections of this order pertain to the directive that Gary Stephen Kennedy must dispose of his interest in the land situated at 90 Cedarvale Rd, Boambee NSW 2450. This requirement is stipulated under item 7 of the table in subsection 69(2) of the Foreign Acquisitions and Takeovers Act 1975 (FATA) (paragraphs (A) to (D)). The order mandates that Kennedy must sell his interest within three months from the commencement of this order, which is defined as midnight (Canberra time) 30 days after the order is registered on the Federal Register of Legislation. The disposal must be to one or more persons who are not his associates. This order imposes several obligations on Gary Stephen Kennedy. Firstly, he is required to sell his interest in the specified land within the specified timeframe. The order mandates that the sale must be completed to one or more persons who are not his associates, ensuring that the land does not remain within the same group of associates. Additionally, Kennedy must comply with the provisions of the FATA as it was immediately after he acquired the interest, particularly in relation to the definition of significant action and its impact on the national interest. Breaching this order could lead to significant legal consequences. While the specific penalties for non-compliance are not detailed in this order, under the FATA, failure to comply with an order to dispose of an interest in Australian land can result in both civil and criminal penalties. Civil penalties may include substantial fines, while criminal penalties can lead to imprisonment. The exact penalties would depend on the specifics of the breach and could be pursued by the Australian Taxation Office or other relevant authorities under the FATA. The severity of the penalties reflects the importance of adhering to the national security and economic interests protected by the Act.