Register of Foreign Ownership of Agricultural Land (Water Entitlements) Notification 2017

Overview

The Register of Foreign Ownership of Agricultural Land (Water Entitlements) Notification 2017 was enacted in response to the need to expand the scope of the Register of Foreign Ownership of Agricultural Land Act 2015 to include water entitlements. This notifiable instrument was introduced by Kelly O'Dwyer, the Minister for Revenue and Financial Services, and is a response to the requirements set out in subitem 34(4) of Schedule 1 to the Register of Foreign Ownership of Agricultural Land Amendment (Water) Act 2016. The overarching objective of this legislation is to maintain a comprehensive register of foreign ownership of both agricultural land and water entitlements, thereby ensuring transparency and enabling the government to monitor and manage foreign investment in these critical resources. The establishment of this register allows for better regulation and oversight of foreign entities' involvement in Australia's agricultural sector and water resources, which is vital for national security and economic stability.

Scope and Application

The Register of Foreign Ownership of Water Entitlements Notification 2017 applies to any person or entity that owns or controls a water entitlement in Australia, including foreign investors. This Act is an extension of the Register of Foreign Ownership of Agricultural Land Act 2015, which was amended to include water entitlements under the Register of Foreign Ownership of Agricultural Land Amendment (Water) Act 2016. The geographic reach of this Act is national, as it applies to water entitlements throughout Australia, regardless of the state or territory in which they are located. The Act imposes a requirement on owners and controllers of water entitlements to notify the relevant Minister of any acquisition, disposal or change in control of these entitlements. However, certain exemptions may apply, such as for water entitlements that are held by the Commonwealth, a state or territory government, or a local government. The Act may be further extended or restricted through subordinate instruments, which may specify additional details or conditions for compliance.

Key Provisions

The Notifiable Instrument F2017N00003, introduced under the Register of Foreign Ownership of Agricultural Land Amendment (Water) Act 2016, establishes a Register of Foreign Ownership of Water Entitlements, as per section 34(4) of Schedule 1 to the Act. This legislative amendment effectively expands the existing framework of the Register of Foreign Ownership of Agricultural Land Act 2015 to include water entitlements, thereby requiring foreign entities to notify the Australian government of their ownership of such entitlements (sections 6 and 7). The notification requirements are designed to ensure transparency and oversight of foreign interests in Australia's water resources, which are critical to the nation's agricultural and environmental sectors. The Act imposes several obligations on the parties involved, primarily focusing on the notification process. Foreign entities, defined under section 5, must notify the Minister for Revenue and Financial Services of their acquisition, disposal, or change in interest in water entitlements (section 6). This notification must include specific details such as the nature of the entitlement, the identity of the entity involved, and the date of the transaction (section 7). Furthermore, entities already holding water entitlements prior to the commencement of this Act are required to notify the Minister within a specified timeframe (section 8). These obligations ensure that the government maintains up-to-date and comprehensive records of foreign ownership in water entitlements. Breach of the notification requirements can result in significant legal consequences. Under section 12, failure to notify the Minister within the stipulated period can be considered an offence. The Act prescribes penalties for such breaches, with the maximum penalty varying depending on the nature and severity of the offence. For example, section 13 outlines that individuals can face fines of up to $50,000 or imprisonment for up to two years, or both, for non-compliance. Additionally, corporations can be fined up to $250,000 for similar offences (section 14). These stringent penalties are intended to enforce compliance and uphold the integrity of the notification regime.