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Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015

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7778

2013-2014-2015

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

 

Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015

 

 

(1)     Schedule 1, item 3, page 5 (lines 14 and 15), omit the definition of agribusiness in section 4, substitute:

agribusiness has the meaning given by section 26A.

[agribusiness]

(2)     Schedule 1, item 3, page 5 (after line 27), after the definition of Australia in section 4, insert:

Australian and New Zealand Standard Industrial Classification Codes means the Australian and New Zealand Standard Industrial Classification Codes, as in force from time to time, published by the Australian Bureau of Statistics .

[agribusiness]

(3)     Schedule 1, item 3, page 26 (lines 21 to 33), omit subsection 19(3), substitute:

             (3)  This section does not apply for the purpose of determining under paragraph 47(2)(b) (meaning of notifiable action —general) whether a foreign person acquires a substantial interest in an Australian entity.

[agribusiness]

(4)     Schedule 1, item 3, page 30 (lines 30 and 31), omit subsection 26(1), substitute:

             (1)  A business is a sensitive business if the business:

                     (a)  meets the conditions specified in the regulations; and

                     (b)  is not an agribusiness.

[agribusiness]

(5)     Schedule 1, item 3, page 31 (after line 5), after section 26, insert:

26A   Meaning of agribusiness

             (1)  An Australian entity or Australian business is an agribusiness in the circumstances set out in the following table.

 

Australian entities and Australian businesses that are agribusinesses

Item

Column 1

This kind of Australian entity or Australian business …

Column 2

is an agribusiness if …

1

an Australian entity

(a) any one or more of the following entities (the agribusiness entities ) derive earnings from carrying on a business of the kind mentioned in subsection (3):

(i) the entity;

(ii) a subsidiary of the entity; and

(b) the amount of those earnings before interest and tax, derived by the agribusiness entities in the most recent financial year for which the financial accounts of the entity have been audited, exceeds 25% of the amount of the total earnings for the entity.

2

an Australian entity

(a) any one or more of the following entities (the agribusiness entities ) use assets in carrying on a business of the kind mentioned in subsection (3):

(i) the entity;

(ii) a subsidiary of the entity; and

(b) the value of those assets exceeds 25% of the total asset value for the entity.

3

an Australian business

(a) the business uses assets in carrying on a business of the kind mentioned in subsection (3); and

(b) the value of those assets exceeds 25% of the value of the total assets of the business.

Meaning of total earnings

             (2)  The total earnings for the entity is the total of all earnings before interest and tax derived in Australia in that year by any one or more of the following:

                     (a)  the entity;

                     (b)  any subsidiary of the entity that carries on a business of a kind mentioned in subsection (3).

Classes of business

             (3)  The business must be carried on wholly or partly in any of the following classes of the Australian and New Zealand Standard Industrial Classification Codes:

                     (a)  any of the classes in Division A (agriculture, forestry and fishing);

                     (b)  any of the classes in Subdivision 11 of Division C (food product manufacturing), other than any of the following:

                              (i)  class 1113 (cured meat and smallgoods manufacturing);

                             (ii)  class 1132 (ice cream manufacturing);

                            (iii)  class 1162 (cereal, pasta and baking mix manufacturing);

                            (iv)  a class in group 117 (bakery product manufacturing);

                             (v)  class 1182 (confectionery manufacturing);

                            (vi)  a class in group 119 (other food product manufacturing).

Mixed earnings and mixed-use assets

             (4)  Earnings that are derived from carrying on a business that is not wholly in a class mentioned in subsection (3) may be apportioned, on the basis of publicly available information, between the part of the business that is in the class and the other parts of the business.

             (5)  The value of assets that are used in carrying on a business that is not wholly in a class mentioned in subsection (3) may be apportioned, on the basis of publicly available information, between the part of the business that is in the class and the other parts of the business.

[agribusiness]

(6)     Schedule 1, item 4, page 35 (lines 23 to 25), omit “A different threshold test applies for certain significant actions taken in relation to agribusinesses.”

[agribusiness]

(7)     Schedule 1, item 4, page 36 (lines 11 and 12), omit paragraph 40(2)(a).

[agribusiness]

(8)     Schedule 1, item 4, page 36 (lines 28 to 30), omit the note.

[agribusiness]

(9)     Schedule 1, item 4, page 37 (lines 30 and 31), omit paragraph 41(2)(a).

[agribusiness]

(10)   Schedule 1, item 4, page 38 (lines 3 to 5), omit the note.

[agribusiness]

(11)   Schedule 1, item 4, page 38 (lines 16 to 19), section 42 to be opposed .

[agribusiness]

(12)   Schedule 1, item 4, page 40 (lines 7 and 8), omit:

A notifiable action is a proposed action by a foreign person:

       (a)     to acquire a direct interest in an Australian entity or Australian business that is an agribusiness; or

      (b)     to acquire a substantial interest in an Australian entity; or

       (c)     to acquire an interest in Australian land.

Generally, the action is only notifiable if the entity, business or land meets the threshold test. A different threshold test applies for certain notifiable actions taken in relation to agribusinesses.

Substitute:

A notifiable action is a proposed action by a foreign person:

       (a)     to acquire a substantial interest in an Australian entity; or

      (b)     to acquire an interest in Australian land.

Generally, the action is only notifiable if the entity, business or land meets the threshold test.

[agribusiness]

(13)   Schedule 1, item 4, page 41 (lines 3 and 4), omit paragraph 47(2)(a).

[agribusiness]

(14)   Schedule 1, item 4, page 43 (table item 1), omit the table item.

[agribusiness]

(15)   Schedule 1, item 4, page 44 (lines 15 to 20), omit paragraph 52(2)(b), substitute:

                     (b)  the value of the interest in the land is more than:

                              (i)  $50 million; or

                             (ii)  if a higher value is prescribed for the purposes of this paragraph—that higher value.

[threshold value for agricultural land]

(16)   Schedule 1, item 4, page 54 (table item 1), omit “a direct interest in an Australian entity that is an agribusiness, or”.

[agribusiness]

(17)   Schedule 1, item 4, page 55 (table item 5), omit “a direct interest in an Australian business that is an agribusiness, or”.

[agribusiness]

(18)   Schedule 1, item 4, page 55 (table item 1), omit “a direct interest in an Australian entity that is an agribusiness, or”.

[agribusiness]

(19)   Schedule 1, item 4, pages 55 and 56 (table item 2), omit “a direct interest in an Australian business that is an agribusiness, or”.

[agribusiness]

(20)   Schedule 1, item 4, page 57 (table item 1), omit “a direct interest in an Australian entity that is an agribusiness, or”.

[agribusiness]

(21)   Schedule 1, item 4, page 57 (table item 4), omit “a direct interest in an Australian business that is an agribusiness, or”.

[agribusiness]