The Impact of the Foreign Investment Review Board (FIRB) on Investments

Australia welcomes foreign investment, as it has played a crucial role in strengthening the country’s economy. Foreign investment helps supplement domestic savings, and without it, production, employment, and income would be lower.

To ensure that foreign investments align with Australia's national interests, the government evaluates significant foreign investment proposals on a case-by-case basis through the Foreign Investment Review Board (FIRB). The FIRB reviews applications under Australia's foreign investment policy and the Foreign Acquisitions and Takeovers Act 1975, providing recommendations to the Treasurer on behalf of the government.

This review process allows the government to consider community concerns about foreign ownership of certain assets when assessing the national interest. The national interest test also takes into account the importance of Australia’s market-driven system, where companies respond to shareholders and investment decisions are shaped by market forces rather than external strategic or non-commercial influences.

Further details about Australia's Foreign Investment Policy are available on the FIRB website.