New Zealand Given Open Slather to Invest in Australia
August 25, 2011
New Zealand Given Open Slather to Invest in Australia
Federal Member for Murray Dr Sharman Stone has tabled a Dissenting Report in Parliament today refusing to support a treaty that would mean less scrutiny for private foreign investment flowing between Australia and New Zealand.
“There have been three individual thresholds triggering scrutiny of New Zealand investment in property or assets in Australia. General investments under $AUS34.6million, heritage properties under $AUS5 million, and commercial property under $AU50 million do not require Australia’s Foreign Investment Review Board to scrutinise.
“However the changes will allow New Zealand’s investment in Australian property to exceed 15% of $1005 million without scrutiny and could buy any residential or rural property across the country.
Australians would only see their investment threshold raised to $AU95.04 million and no Australian can buy waterfront property or land over 5 hectares. When this statistic is coupled with the New Zealand Overseas Investment Authority retaining their different definition of ‘sensitive assets’ criteria, the picture starts to become clearer.
“The New Zealand protocol on investment allows owners of a New Zealand business to invest in Australia and not be scrutinised unless they trigger the massive new thresholds, even if they are not New Zealand citizens, and they do not reside in New Zealand.
“This is not about blocking foreign investment, but rather, I have serious concerns about the reduction in scrutiny and transparency that will now occur.
“Today, New Zealand investors face no scrutiny on anyinvestment in Australia under $AU150 million, yet Australians cannot buy waterfront property or farms New Zealand and will have their intended capital asset purchases over $AUS95 million scrutinised.”
“Unfortunately the government is choosing to introduce these changes as a cost cutting measure, and because it echoes the rules for USA investment in Australia. These existing treaties should also be more closely scrutinised, not replicated in New Zealand,” Sharman Stone said.
Media Contact Jonathan Clark: 0417148 110
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