Restoration of pre-COVID FIRB monetary thresholds: renewal of leases for non-sensitive developed commercial land

By Conrad Smith

In what will undoubtedly be welcome news for foreign investor tenants, the Federal Government has, with effect from today (4 September 2020), amended the Foreign Acquisitions and Takeovers Regulation 2015. The amendments reinstate the pre-COVID FIRB monetary thresholds to the renewal or material variation of existing non-sensitive leasehold interests in developed commercial land where the same foreign investor tenant held a substantially similar interest under a lease on 29 March 2020.

This change lessens the regulatory burden on foreign investor tenants but does not completely wind back the impact of the Government’s COVID-19 response measures as the $nil threshold remains in place for foreign investor tenants looking to enter into new leases and licences which are reasonably expected to have a duration of more than five years.