Budget 2024: Jim Chalmers’ plan to unlock foreign investment

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While some investors will get a fast track, extra safeguards will be set up for high-risk proposals, like China entities investing in critical infrastructure.

Overseas investors with a proven record, such as Canadian pension funds, will receive accelerated approvals under a revamp designed to lure foreign capital.

This, he says, will work hand in glove with the billions in government grants, loans and equity funding, in that the public funding is designed to kickstart green energy and advanced manufacturing projects. Paperwork will be reduced for repeat investors whose ownership structure has not changed since their previous investment.

“ makes foreign investment less competitive than purely domestic investors, particularly where slow and or uncertain FIRB processes can derail commercial negotiations,” noted the investment council, which represents superannuation funds, private equity and other institutional investors.Dr Chalmers also pledges that to encourage competition among investors, unsuccessful bidders will have their application fees refunded.

Dr Chalmers will announce more resources to screen foreign investment proposals involving critical infrastructure, minerals or technology; proposals that involve sensitive data sets; and those close to defence sites, “to ensure that all risks are identified, understood and can be managed”.

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