Coalition pledges to overhaul FIRB approvals process
The Coalition will overhaul the Foreign Investment Review Board (FIRB) to make foreign investor approvals “faster, easier, and more predictable”, if the party is elected in the upcoming federal election.
Shadow treasurer, Angus Taylor MP, has announced plans to design and implement a Foreign Investment Review Board (FIRB) whitelist to fast-track the approval process for trusted foreign investors.
The FIRB is a non-statutory body that advises the elected Treasurer and government on Australia’s foreign investment policy and administration.
As part of this role, the board is responsible for ensuring that applications from foreigners who wish to acquire Australian property comply with the Foreign Acquisitions and Takeovers Act 1975 (Cth).
Taylor said the Coalition will commission a taskforce to design a whitelist process for trusted investors that will enable them to “continue to play a crucial role in Australia’s economy”.
Taylor said the whitelist could apply to trusted investors from Australia’s partners in the Quadrilateral Security Dialogue grouping (Australia, India, Japan and the US) and the Five Eyes alliance (Australia, Canada, New Zealand, the UK and the US).
While specific details of this whitelist have not yet been revealed, Taylor said the Coalition aims to make FIRB approvals “faster, easier, and more predictable” for Australia’s investment partners.
“The goal is to reduce the volume of paperwork, increase the pace of decisions, and the number of times trusted partners need to go through the process, and pay the fees which are increasingly being used as a revenue source rather than genuine cost recovery,” Taylor said.
Nevertheless, Taylor emphasised that “rigorous national security checks will stay in place” within all whitelisted FIRB approval processes.
“This is about smarter screening, not weaker oversight – a faster yes and a faster no – ensuring we focus resources where they are needed most while fast-tracking responsible investment,” he said.
The Coalition’s pledge to overhaul the FIRB is similar to the measures launched by the Labor government last year to fast-track the FIRB approvals process.
The Treasury’s Quarterly Report on Foreign Investment for Q4 of FY 2023–24 outlined a new performance target to process 50 per cent of investment proposals within the 30-day statutory decision period, starting from 1 January 2025.
To accomplish this, the Treasury announced that it would focus scrutiny on high-risk investments and streamline low-risk investments to quickly attract the capital Australia requires.
Although the median processing time of 41 days for the board to approve commercial investment proposals reduced from 49 days in Q3 of FY 2023–24, the figure still registered above the 30-day target.
The Property Council of Australia welcomed the Coalition’s announcement, with CEO Mike Zorbas stating a whitelist could help remove burdensome red tape from the FIRB process and help Australia attract more global capital.
“Australia competes for global capital and institutional investors seeking stable, risk-adjusted returns,” Zorbas said.
“While strong demographics and growth are advantages, complex, costly regulations and taxes make investment less competitive,” he explained.
Zorbas said that a whitelist for trusted investor partners will enhance investment in cities across the nation and accelerate the delivery of much-needed commercial, industrial and residential property projects.
“We should welcome other people’s money to build the housing and infrastructure we need,” Zorbas said.
“Screening is important, and it is equally important that passive or non-controversial investment opportunities should not need to face an extended process that only adds to delay and cost for the end consumer,” he concluded.