What is a FIRB exemption certificate?

What is a FIRB exemption certificate?

An exemption certificate is a mechanism available to minimise regulatory burden by enabling foreign investors to obtain approval for a program of investments instead of a separate approval for each investment. It is intended for foreign persons with a high volume of investments.

Who needs to apply for FIRB?

Proposed investments in agricultural land generally need FIRB approval when the total value of a foreign person’s agricultural land holdings exceeds $15 million, with exceptions applying to investors from Australia’s trade agreement partners and a $0 threshold applying to Foreign Government investors.

What is a foreign person under FIRB?

WHO IS A ‘FOREIGN PERSON’? Those Acts apply where a foreign person has taken or is proposing to take certain action such as acquiring an interest in land. Foreign persons are subject to a number of obligations under the Act and the Agricultural Land Register Act.

What is FIRB approval?

FIRB stands for ‘Foreign Investment Review Board’, which is a body set up under the Foreign Acquisitions & Takeovers Act 1975 (Cth) (‘FATA’) and reporting to the Treasurer. FIRB approval is only required where the investor is a ‘Foreign Person’ within the meaning of the FATA.

Does FIRB need approval?

You don’t need approval from the FIRB. You can buy a new property, existing property or vacant land. You can live in the property, or it can be an investment.

How long does FIRB last?

The exemption certificate will generally be valid for six months from the date of approval and will be subject to conditions that apply once an established dwelling has been purchased.

Do I require FIRB approval?

You need approval from the FIRB . You can only buy one established dwelling, and it must be to live in; however you will be required to sell it once you do not live there anymore. You don’t need FIRB approval if you’re buying the property with an Australian citizen as joint tenants and you’re in a spousal relationship.

How long does it take to get FIRB?

You can apply for FIRB approval by visiting the FIRB website and following the online application process. Generally, the FIRB takes 30 days to grant approval. However, it could take longer depending on your circumstances.

What is a notifiable action FIRB?

If a foreign person choses to notify the Treasurer regarding a proposed significant action it becomes a notifiable action. Under the Regulation, all significant actions prescribed in the Regulation are also notifiable actions.

Who is considered a foreign person in Australia?

A ‘foreign person’ includes: an individual not ordinarily resident in Australia – note that to be ‘ordinarily resident’, the individual must be either an Australian citizen or permanent resident and must have been in Australia for at least 200 days in the 12 months preceding the acquisition.

How do I know if I need FIRB approval?

You’ll need FIRB approval if you are buying the property together as tenants in common. You can buy a new property, existing property or vacant land. You can live in the property, or it can be an investment.

What is FIRB number?

If you are experiencing issues contacting our staff via the FIRB phone line +61 2 6263 3795, please be aware that you can also contact our staff using the following email: [email protected]

What is the de minimis exemption under the FIRB regime?

Under the current FIRB regime, offshore transactions (such as where the foreign target has an Australian subsidiary) by FGI acquirers trigger mandatory FIRB approval requirement unless the de minimis exemption applies. The exemption currently applies where, among other things, Australian assets are <$55m and are not part of a sensitive business.

What does the new FIRB regime mean for Australia?

The Australian Government has finalised and released legislation to make major changes to Australia’s foreign investment laws – commonly known as the ‘FIRB regime’ – with effect from 1 January 2021.

What is FIRB approval for mining and production tenements?

Under the current FIRB regime, FIRB approval is needed for a foreign person to acquire interests in mining or production tenements, irrespective of value. The definition is sufficiently broad to include revenue streams (such as royalties) from tenements.

What is the new FIRB approval requirement from 1 January 2021?

From 1 January 2021, there will be an additional mandatory FIRB approval requirement, which arises for each action taken by a foreign person that constitutes a ‘notifiable national security action’. to acquire an interest in ‘national security land’.