Govt invites feedback on updates to foreign investment framework

Yasmine Raso

Senior Journalist

3 November 2025

The Federal Government has welcomed industry feedback on a consultation paper proposing further reforms to the current foreign investment framework to strengthen the risk assessment processes in place that ensure investments are in the “national interest”.

According to a statement released by Treasurer, Jim Chalmers, the reforms are intended to streamline the process to allow “more investment that’s in Australia’s national interest” while also ensuring higher-risk proposals are subjected to more “rigorous scrutiny”.

“Our goal is a foreign investment regime that is much stronger where risks are high and much faster where risks are low,” the statement said.

“We’re continuing to strengthen and streamline our system to ensure Australia remains an attractive destination for investment in an environment where competition for global capital is becoming more intense.

“We’re also ensuring our framework evolves to manage new and emerging risks to the national interest amidst an increasingly challenging international security environment.”

The new consultation follows previous reforms that have been progressively implemented since 2024, which has resulted in “complicated cases” being assessed “appropriately and robustly” and quick approvals for those identified as “clearly in the national interest”.

The consultation paper has opened feedback on:

• an automatic approval pathway so low‑risk actions from trusted investors would require notification but not sign‑off, while retaining the power to review cases where required;
• ways to reduce reporting and approval requirements, better manage approved investments, and provide more certainty on timely decisions;
• strengthened conditions and enforceable undertakings to ensure investments are in the national interest;
• a strengthened information-sharing capability for limited purposes; and
• the effectiveness of current infringement penalties and methods for deterrence.

“Foreign investment is crucial to Australia’s prosperity and we are committed to ensuring it is in Australia’s national interest as well,” the Treasurer’s statement said.

“We are strengthening and streamlining Australia’s foreign investment system to attract investment that drives economic growth, creates skilled jobs, and lifts competition and innovation.

“This will make the foreign investment regime stronger and faster.”