On 31 October 2025, the Government issued a discussion paper on foreign investment framework reforms.

In 2024, the Government announced policy and practice reforms to make Australia’s foreign investment settings work better for investors, the national interest and the economy. The Government now believes that further reforms are now required to continue its streamlining and strengthening agenda.

In particular, some of the proposals that the Government is seeking feedback on include:

  • A more risk-proportionate scrutiny and management of foreign investment. Options for discussion include introducing new categories (defined by objective criteria) of lower risk actions for which investors would be required to inform the Government but which would not require review and approval before the investment could be made. Another option for discussion is requiring notification only (rather than pre-approval) for minor acquisitions of additional interests where the total interests held stays within a specific band, if there would be no or minimal change in the investor’s effective or legal control in the asset.
  • Reducing the burden of reporting to the Register where possible, while maintaining visibility of material foreign acquisitions of Australian assets. Options for discussion include enabling more parties to give notice on behalf of others to reduce reporting obligations for a single transaction, where that transaction technically comprises multiple actions. Also, changing the types of acquisitions that are reportable (for example, removing requirements to report equitable interests).
  • Better alignment of regulatory oversight with actual foreign investment risks at different points in time. Options for discuss include amending the tracing of interests to ensure future investments that may present higher risks can be scrutinised despite approval having been given for an earlier, related investment.
  • Adjustments to and expanding the exemption certificate (EC) powers in the framework. Options for discussion include consolidating the existing EC powers into a new, broad EC power that will ensure a consistent approach to EC applications across all action categories and eliminate the need for “combination” ECs given under multiple provisions for a single proposal.
  • Removing inconsistencies and inefficiencies in the Treasurer’s powers that relate to no objection notification (NONs) to make these powers more efficient and effective. Options for discussion include consolidating various NON provisions in Foreign Acquisitions and Takeovers Act 1975 into one uniform power to issue a NON, with or without conditions, including for retrospectively notified investments.
  • Reducing foreign investment processing times. Options for discussion include allowing for the statutory timeframe to be adjusted or paused in some circumstances (for example, upon the provision of incomplete information, where additional information becomes required during the assessment process, or during the end-of-year regulator shutdown period).
  • Improvements to enforcement powers. Options for discussion include accelerating the operation of disposal orders (so that they can take effect before risks can be realised).
  • Updating associate relationships, influence and control. Options for discussion include adding further categories to the definition of associate relationships, allowing for a fact-based determination of relationships of association and lowering the thresholds for existing associate relationships categories.

Next steps

The deadline for comments on the discussion paper is 12 December 2025.