Australia is built on foreign investment and continues to depend to a large extent on foreign capital inflows and the direct participation of foreign investors in the economy for its continued growth.
As a developed economy and a member of the G20, Australia also offers foreign investors a stable and attractive base to expand their businesses into some of the world’s fastest growing markets. These include not only Australia, but also China, India and the ASEAN countries.
Australian governments of all political persuasions welcome foreign investment whether through new ventures or via mergers and acquisitions. There are some restrictions on foreign investment in Australia and in these cases approval is required from the federal government and its Foreign Investment Review Board (FIRB).
Examples of these requirements relate to the nuclear, media, telecommunications and agricultural sectors; investments above certain dollar thresholds and; investments by state owned enterprises from any country. Applications from or into these sectors are assessed under the Foreign Acquisitions and Takeovers Act (FATA) and policy guidelines issued from time to time by the federal Treasurer. One key element of these applications is an assessment of whether the investment proposal is in Australia’s national interest.
Australia also has its own market characteristics that can affect an investor’s successful entry into Australia. For example, the interaction between federal, state and local government needs to be understood in the Australian context rather than relying on overseas models or perceptions.
Against this background, DJG & Associates can assist foreign investors through the successful application of its project and business services. These include:
- Identification of market opportunities and the development of strategies and plans to capture those opportunities
- Assessment of various aspects of the Australian market, including: the competitive landscape and analysis of how the Australian market might behave differently than that the foreign investor is used to
- Review of potential business partners including project joint venturers and potential business models that an investor could implement
- Identification of specialist service providers including legal, finance, due diligence specialists, communications and community relations
- Interpretation and assessment of the practical implications of federal, state and local government policies, legislative and regulatory frameworks applicable to the investor’s business. Examples include: environment, workplace relations, competition policy, health and safety.
- Where applicable, advise on strategies to obtain foreign investment approvals including the development and presentation of arguments to establish how particular proposals are in Australia’s national interest
- Advising on project management and set-up including: project scoping, tender preparation, contract negotiation, risk assessments and mitigation strategies
- Assisting in the due diligence of existing resources or facilities and advising on the capacity of potential business partners to meet the investors’ needs
DJG’s Directors and Associates all have significant and senior experience in growing businesses in Australia and Asia and in facilitating foreign investment into the country. They are available to provide investors with practical, experienced, independent and confidential advice.
