Government Looks to Increase Competition Across the Economy with Changes to Foreign Investment Rules
Source: Australia. Minister for Competition Policy and Consumer Affairs. Media Release
"The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs, Chris Bowen MP, today announced that the Rudd Government will change the foreign investment policy to extend the timeframe for the development of vacant commercial land from 12 months to 5 years. “This change to the foreign investment policy is aimed at increasing competition in the economy,” Mr Bowen said. “The current time limit on foreign investors discourages new competitors from entering the market and prevents some existing competitors from expanding their business because they cannot secure forward purchases of land in growth areas and ‘Greenfields’ sites. “The change recognises the reality facing commercial land purchasers that 12 months is simply not enough time for completing all the statutory and commercial processes required to enable development to commence. “The Rudd Government believes that a 5 year limit strikes the right balance between encouraging competition while preventing foreign investors from land banking and speculating. This reform creates a more level playing field, and pulls down the barriers to entry to foster competition."