The recent free-trade agreement between Australia and the United Kingdom (UK) allows private UK investors to invest more in Australia property.
Australia's Foreign Investment Review Board (FIRB) regulates foreign investment in Australian land and businesses. Investors are subject to screening for investments depending on the type of investment, the country of origin of the investor and whether the investors exceed the relevant monetary threshold.
The Australia-United Kingdom Free Trade Agreement (A-UKFTA) entered into force on 31 May 2023. (For background, see EY Global Tax Alert, UK/Australia and New Zealand Free Trade Agreements enter into force, dated 31 May 2023) As part of the A-UKFTA, private investors from the United Kingdom are now subject to higher monetary screening thresholds for certain investments. The investment categories affected by these higher thresholds include investments in developed commercial land, and sensitive and non-sensitive businesses.
These updated thresholds apply to actions taken on or after 31 May 2023. The updated thresholds are available on the FIRB website.
For additional information with respect to this Alert, please contact the following:
Ernst & Young (Australia), Corporate Law, Sydney
- Alex Worner
- Amber Cerny
- Adam Coonan
- Steve Johns
Ernst & Young LLP (United States), Australia Tax Desk, New York
- Naomi Ross
Ernst & Young LLP (United Kingdom), Australia Tax Desk, London
- James Poulos
Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
