David Littleproud
September 12, 2016
Federal Member for Maranoa David Littleproud has called for a productivity test to be applied to foreign investment following the release of a foreign-owned farm register last week.
The register, compiled by the Australian Tax Office, shows 13.6 per cent of Australia’s farmland is now foreign-owned.
UK investors own 27.5 million hectares, or almost 53 per cent of that.
The USA is the next biggest investor, with 7.7 million hectares, followed by the Netherlands with 3 million hectares and Singapore with 1.9 million hectares.
China – in fifth place – owns 1.5 million hectares.
“We need a mature debate on this based on fact, not emotions,” Mr Littleproud said.
“The government’s framework on foreign investment balances foreign investment with the need to reassure the community our national interests are being protected.
“We now have foreign-owned agricultural land transparency with new laws in effect, meaning that all existing foreign-owned agricultural land holdings must be registered with the ATO and any new holdings be registered within 30 days of purchase.”
Mr Littleproud said the Government had also changed the Foreign Investment Review Board’s (FIRB) rules for examining potential foreign investments by lowering the trigger threshold on land acquisitions from $55 million to $15 million for agribusiness proposals.
“This is considerably lower than what Labor put forward last year,” Mr Littleproud said.
“But now that we’re getting a clearer picture on foreign ownership, I believe the next step is to include a productivity test on potential investors.
“That way, foreign-owned companies have to prove to the FIRB the investment will create jobs and increase Australia’s productivity, in addition to providing the Treasurer with powers of dispossession for properties that fail to meet productivity standards.”
Mr Littleproud said there are many parcels of land across in the Maranoa electorate with absentee managers that were in need of investment, and the creation of a productivity test would encourage community-building investment and grow the economy.
Mr Littleproud said he supported his colleague Queensland Senator Barry O’Sullivan’s proposal for a national symposium to spearhead a high-level assessment of the current regulatory system surrounding foreign investment, and gather feedback from stakeholders interacting with the rules.
“Every stakeholder needs to be involved in this because we need to get a clear picture, based on facts, about what’s going on.
“Now we need to take the next step.
“It’s my belief a productivity test is the key, and needs to be explored during a national symposium,” he said.
Foreign-Owned Farmland By State
Source: Australian Taxation Office
