Recent Filings Data In recent years, FIRB has rejected only a few proposed acquisitions; in practice, applicants will withdraw their applications rather than wait to receive a rejection. Based on data available from the 2024-25 review period, FIRB approved 1,362 commercial applications (919 of which were approved without conditions). 131 applications were withdrawn, while zero were subject to formal prohibition or disposition orders. The United States has remained the largest source country for inbound FDI, lodging the largest value of FIRB applications in 2024-25, at AU$122.3 billion. The value of applications approved for American investors far outstripped that of any other nation – the second largest investor was Japan with AU$15 billion in approved FIRB applications in 2024-25. Canada has also nearly doubled its investments in the last year, as the third largest investor with AU$12.5 billion in 2024-25. The UK has similarly doubled its investments, from AU$2.9 billion in 2023-24 to AU$5.9 billion in 2024-25.
Recent Enforcement Trends
Given the potential civil and criminal penalties (up to 10 years imprisonment or a financial penalty of AU$4.95 million for an individual or AU$49.5 million for a corporation, or both) that may apply for failure to seek approval for an action that requires FIRB approval, taking certain actions that approval was not received for, or breaching conditions imposed on an approval, it is important that parties consider whether FIRB review should be pursued in connection with a potential transaction. Parties must also be aware that if the FIRB imposes mitigation conditions with respect to the potential transaction, a failure to comply with or an attempt to contravene such conditions can also result in the imposition of civil or criminal penalties.
Outlook for 2026 Australia remains open for business, though geopolitical shifts continue to affect investors from key source countries such as the United States and Japan. The re-election of the Albanese Labor government in May 2025 provided policy continuity, and the government has announced a substantial package of FIRB Reforms as part of the 2026-2027 Budget — the most significant update to the foreign investment framework since January 2021. Key proposed reforms include a 30-day decision target for low-risk transactions, expanded exemption certificate powers (including the ability to adjust FGI status), new exemptions from mandatory notification, expanded requirements for sensitive sectors, and strengthened enforcement powers by the Treasurer. The legislative details remain subject to further Treasury consultation and an exposure draft process beginning in late 2026 or thereafter. In the meantime, the existing framework continues to apply in full. Parties should consider FIRB implications at the earliest stage of any Australian investment, particularly where national security considerations or FGI status may be engaged.
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FDI and National Security Review
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