Foreign investment changes a needed boost to business confidence
Reducing the barriers to foreign investment is a strong signal that Australia is once again open for business, writes Pitcher Partners Melbourne Corporate finance lead Michael Sonego.
They barely cracked a mention in coverage of the Federal Budget in March, but changes to the foreign investment framework should make it easier for some offshore buyers to invest in Australia — the first substantial change since new rules were introduced in January 2021 amid the pandemic.
Given the headwinds M&A has faced in 2022, from war to inflation to the threat of interest rate rises, any change that keeps the market moving will be welcome.
But it remains to be seen whether the moves will do enough to spur along the market, which saw foreign direct investment (FDI) in the first nine months of the reforms fall by nearly $2 billion or 12 per cent compared to the previous period.
Why would you advocate for more Australian homes, land, businesses and media entities being owned or controlled by foreign nationals and or corporations? Do we say no to Russian oligarchs but yes to Communist China?