FATA 1975 + FIRB Thresholds 2026: When Foreign Investment Needs Approval
Foreign Acquisitions and Takeovers Act 1975 monetary thresholds and FIRB approval triggers as indexed on 1 January 2026, including FTA and sensitive sector rules.
The FATA framework
The Foreign Acquisitions and Takeovers Act 1975 (FATA) regulates foreign investment into Australia. The Treasurer administers FATA, receiving advice from the Foreign Investment Review Board (FIRB). This legislation governs acquisitions of assets and businesses within Australia by foreign persons. DFAT sanctions compliance is a related consideration.
A common scenario requiring assessment under FATA is when a foreign person acquires a substantial interest in an Australian entity. This generally means acquiring 20 per cent or more of the ownership. Certain monetary thresholds are adjusted annually on 1 January, impacting which acquisitions require review.
Acquisitions that trigger FATA requirements must receive approval before they are completed. Failure to obtain this approval can result in the acquisition being unwound. Foreign government investors are generally subject to a zero-dollar threshold for most direct interests, meaning almost any investment requires scrutiny.
2026 monetary thresholds
The monetary thresholds determining when foreign investment approval is required under the *Foreign Acquisitions and Takeovers Act 1975* (FATA) will change in 2026. The non-FTA business acquisition threshold will increase to $347 million. This represents an increase from the $339 million threshold in place for 2025. Agribusiness transactions are subject to a lower threshold of $75 million, also an increase from $73 million in 2025. foreign influence transparency scheme considerations may also apply.
Investors from Chile, New Zealand, and the United States, benefiting from Free Trade Agreements (FTAs), are subject to a higher threshold of $1,498 million for non-sensitive businesses. It is important to note that sensitive businesses and land acquisitions have lower thresholds, and media businesses always require notification, irrespective of transaction value.
Details regarding these thresholds, and any subsequent updates, are published by the Treasury and can be found on foreigninvestment.gov.au and the Federal Register of Legislation.
Sensitive sectors and zero-dollar triggers
Certain sectors are subject to stricter foreign investment rules, requiring approval or notification regardless of the investment’s value. All foreign investments in residential land necessitate approval. Investments in businesses or land deemed to relate to national security also trigger notification requirements, irrespective of the monetary value. Critical infrastructure and critical technology businesses are considered national security businesses for these purposes. foreign bribery offence
Foreign government investors face specific obligations. They must notify the government for any direct interest of 10% or more in an Australian entity, with effectively no monetary threshold applying. This notification requirement applies regardless of the size of the investment.
Investments in the media sector also attract heightened scrutiny. Notification is required when a foreign investor acquires a direct interest of 5% or more in a media business, irrespective of the value of the investment.
Application process and penalties
Applications for foreign investment approval are submitted through the FIRB portal. Once received, applications are subject to a statutory 30-day decision period, which may be extended by interim order. Application fees are determined by the value and type of investment, and are adjusted according to the 2025 fee schedule.
The Treasurer has the authority to prohibit, vary, or order the divestiture of acquisitions that raise national interest or national security concerns. Approvals are not unconditional; conditions may be imposed, such as requirements relating to tax or employee retention. The Australian Taxation Office and Treasury are responsible for enforcing these conditions.
Failure to comply with FATA notification obligations, including the failure to notify a notifiable action, carries the risk of civil and criminal penalties.
Frequently asked
Do FTA investors still need FIRB approval at all?
Yes — even though FTA investors from countries like the US, NZ and Chile enjoy a high $1,498 million non-sensitive business threshold, sensitive sectors, residential land, agricultural land, media and national security investments are subject to lower or zero-dollar thresholds.
What happens if a foreign acquisition is completed without FIRB approval?
The Treasurer can order divestiture and impose civil penalties. Acquiring an interest without required notification is a criminal offence under FATA, with significant penalties indexed to penalty units and benefit obtained.