Australia’s Foreign Investment Framework: Key Reforms to Streamline Foreign Investment Approvals

Recognising the importance of foreign capital, the Australian Government has recently announced a new package of reforms aimed at streamlining the approvals process for foreign investments in Australian assets, businesses and property. The full announcement is available here. 

These reforms signal a clear policy direction; encouraging low-risk foreign investment while modernising the regulatory framework to reduce unnecessary complexity and delay. 

This article outlines the key initiatives that are likely to be of most interest to offshore investors. 

Faster investment approvals for low-risk investors

One of the most significant changes from 1 January 2027 is the introduction of a new processing timeframe of 30 days in relation to low-risk investment applications.  

This will apply to investors with: 

• a strong compliance history; 

• prior approvals; and 

• straightforward transaction structures. 

This provides a clear expectation that low risk application will receive either a decision or a request for further information within 30 days in contrast to the present system where the time for considering applications were frequently extended and indeterminate.  

Reducing the need for repeat approvals

The Government is also broadening the use of Exemption Certificates (ECs). ECs are approvals issued by the Treasurer that allows a foreign investor to undertake a class of transactions without needing to apply for FIRB approval each time.  

These changes will allow: 

• broader and longer‑lasting approvals;

• fewer repeat applications for ongoing investment strategies; and

• streamlined treatment of complex ownership structures and tracing issues. 

In practical terms, this means that Investors undertaking multiple or staged investments into Australia may be able to obtain a single approval covering a range of future transactions. 

Removing approvals for low-risk transactions

The reforms also target unnecessary regulatory friction by removing approval requirements for certain low-risk investments which are largely administrative in nature or arise from restructuring without any fundamental change in control.  

Key examples include: 

• small increases in existing shareholdings (without change of control);

• certain internal restructures and funding arrangements; and

• transactions with minimal control implications.

The Government will also increase investment thresholds in non-sensitive sectors to $347 million. 

Longer validity periods for approvals

For larger or more complex investments, timing can often be a practical challenge. To address this, the Government will extend the default validity of approvals (No Objection Notifications) from 12 months to 24 months. 

 This reduces the need for: 

• re‑applications;

• extension requests; and

• duplication of regulatory processes.

Streamlining reporting and compliance

The Government has also committed to reducing administrative burden by simplifying reporting obligations. 

Key changes include: 

• eliminating duplicate reporting to the Register of Foreign Ownership;

• relying more heavily on information already submitted through approval processes; and

• improving digital systems and investor support services.

Conclusions

These reforms sit alongside a broader shift to a more risk-based system. In particular: 

• low-risk investments will benefit from faster and simpler processes; and

• higher-risk or sensitive sector investments will continue to be subject to enhanced scrutiny.

This approach ensures that Australia remains open to investment, while maintaining appropriate safeguards in areas of national interest. 

For most commercial investors, particularly those operating in mainstream sectors, these changes should result in a more efficient and proportionate regulatory experience. 

Contact us

Our team regularly advises overseas investors on navigating Australia’s foreign investment rules, structuring transactions efficiently and managing approval processes. 

If you are considering an investment into Australia or would like to understand how these reforms may impact your existing or future investment strategy, please contact us to discuss your circumstances.