Policy Proposal: National Safeguard Policy on Foreign Ownership of Australian Assets (NSPFOA)

Objective: To ensure responsible foreign ownership of Australian farms, farmland, businesses, and residential properties, balancing economic growth with national security and safeguarding Australia’s sovereignty.

Key Components of the Policy

1. Capped Foreign Ownership Levels:

   • Introduce maximum ownership thresholds for foreign investors in critical sectors:
     • Agricultural land: Limit foreign ownership to 20% per region and no more than 5% of Australia’s total agricultural land.
     • Critical businesses: Capped at 25% foreign ownership in businesses related to food security, water resources, energy, and defense supply chains.
     • Residential properties: Restrict foreign purchases to new-build homes only, limiting their impact on housing affordability.

2. National Security Review Board (NSRB):

   • Establish a specialized board under the Foreign Investment Review Board (FIRB) to assess national security risks of foreign investments, particularly those involving land or businesses near critical infrastructure (e.g., military bases, ports, energy grids).

3. Enhanced Transparency Requirements:

   • Mandatory public disclosure of foreign ownership of farmland, residential properties, and critical businesses through an online Foreign Ownership Register.
   • Regularly publish reports on foreign investments and their economic and security impacts.

4. Reciprocity Principle:

   • Require reciprocal rights: foreign investors from countries with restrictive policies on Australian ownership of their land or assets will face similar restrictions.

5. Support for Domestic Buyers:

   • Establish a First Rights of Purchase Scheme for Australian farmers and businesses, giving locals the first opportunity to buy properties or assets before they are sold to foreign investors.
   • Provide low-interest loans and grants to help young Australians enter the agriculture, business, or housing markets.

6. Strategic Land Protections:

   • Ban foreign purchases of land or businesses deemed vital to food security, water supply, energy independence, or military strategy.
   • Enforce strict penalties for violations, including forced divestment of unlawfully acquired assets.

7. Ongoing Monitoring and Compliance:

   • Increase FIRB funding to audit foreign-owned properties and businesses regularly.
   • Penalize companies or individuals failing to meet disclosure and compliance requirements.

Policy Rationale

1. National Security:

   • Protecting farmland, water resources, and critical infrastructure from foreign control ensures the sovereignty of Australia’s essential assets.
   • Foreign ownership near defense sites could pose espionage risks or lead to infrastructure exploitation during geopolitical tensions.

2. Food and Water Security:

   • Australian-owned farms ensure domestic control over agricultural production, reducing vulnerability to external pressures that could disrupt food supply.
   • Prevent monopolization of water resources by foreign entities, safeguarding access for local farmers.

3. Economic Stability:

   • Excessive foreign investment in residential properties inflates housing prices, creating affordability challenges for Australians.
   • Ensuring Australian ownership fosters reinvestment into local economies and promotes job creation.

4. Fair Competition for Australians:

   • Caps and restrictions on foreign ownership levels ensure Australian farmers, business owners, and homebuyers have equitable opportunities to acquire land and assets.

5. Transparency and Public Trust:

   • A public register and regular reporting increase accountability and ensure Australians have a clear understanding of foreign ownership trends.

Implementation Strategy

1. Legislative Changes:

   • Amend the Foreign Acquisitions and Takeovers Act 1975 to reflect updated thresholds, restrictions, and penalties.

2. Strengthening FIRB:

   • Expand FIRB’s budget and staff to enhance review processes and compliance enforcement.

3. Engagement with State and Territory Governments:

   • Collaborate with local governments to monitor foreign ownership trends and align policy enforcement.

4. Public Awareness Campaign:

   • Inform Australians about the new rules, emphasizing their role in protecting national security and supporting local economic opportunities.

5. Annual Policy Review:

   • Evaluate the policy’s impact annually to address new challenges and ensure alignment with economic and security goals.

Potential Benefits

1. Enhanced Sovereignty and Security:

   • Ensures critical resources like land and water remain under Australian control, minimizing risks of foreign exploitation or geopolitical leverage.

2. Affordable Housing:

   • Restrictions on foreign ownership in residential markets help ease competition and support housing affordability for Australians.

3. Economic Empowerment:

   • By prioritizing domestic ownership, the policy encourages local investment, entrepreneurship, and generational wealth-building.

4. Sustainable Agriculture:

   • Limits on foreign ownership prevent over-exploitation of farmland and water resources, fostering sustainable agricultural practices.

5. Public Trust:

   • Transparency measures build trust by ensuring Australians know who owns critical assets and how these investments align with national interests.

This policy reflects a balanced approach to foreign investment, leveraging its benefits while protecting Australia’s long-term economic, social, and security interests.