The coalition is seeking faster approval while governments strengthen national security checks.
The coalition has pledged to implement a streamlined approval process to foreign investors from key allies, including Quad, Five Eyes and Aux Partners.
Shadow Treasurer Angus Taylor has announced that a dedicated task force has been established to design the “whitelist” system, reducing documentation and speeding up approval from trusted investors.
“Screening for foreign investments remains important and strict national security checks will be maintained. This is not about weaker surveillance, but about smarter screenings. Yes, faster no,” he said in a statement released on March 4th.
Taylor said the goal is to reduce the deficit by minimizing the number of hours a trusted investor needs to go through the approval process and reduce the associated fees to a minimum.
Taylor also announced that the coalition will leave it to the Productivity Committee with annual inventory of regulatory costs.
According to the opposition parties, compliance costs for some listed companies currently exceed $1 billion, serving as a “hidden tax” for consumers.
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It also curtails innovation by shifting resources to regulatory compliance rather than driving growth.
The Productivity Committee evaluates the economic impact of regulations, ranks them based on their burdens, and recommends legislative reforms to facilitate compliance costs.
Government’s Foreign Investment Framework
The announcement comes almost a year after the Albanese government implemented reforms to Australia’s foreign investment framework, granting it to the financial authorities by the financial authorities that approve, impose, prohibit or request investments deemed to be in violation of the national interest.
Evaluation factors include national security, competition, economic impact, and investor character.
While announcing the changes, Treasurer Jim Chalmers said changes are being made to protect sensitive industries, supply chains, critical infrastructure, data and critical minerals. The reforms also included a more robust investigation into how the proposed projects relate to national interests.
“If the supply chain or industry is more controlled by overseas interests, they have the ability to manipulate or interfere. In some cases, the most extreme case of attracting sabotage or espionage. It needs to be very careful in our critical industries, whether it is a critical mineral, critical data, or critical infrastructure,” says Chalmers.
Asked if the system changes were being directed towards China, the accountant said the government was not focusing on any country.
“The tests we apply to investments apply equally to investments from all regions of the world. If you have investments in sensitive areas, or sensitive places, or sensitive industries, people can expect it to attract more scrutiny.”
Foreign investments are rising, but housing markets face curbs
The latest financial report on foreign investment approvals shows that 377 commercial investment proposals worth $466 billion were approved in the last quarter, with the US approved at $22.9 billion, Singapore at $4.6 billion and Canada at $1.8 billion.
Commercial real estate attracted the highest investment at $24.1 billion, followed by $10.3 billion in service.
In the housing sector, 1,123 real estate proposals worth $1.3 billion have been approved, with China as the largest investor at $0.40 million. The median commercial investment approval time was 34 days, but the housing proposal was processed in five days.
However, in order to curb foreign ownership, the government implemented a two-year ban starting in April 2025. This prohibits non-residents, including temporary workers and students, from purchasing existing Australian homes until March 31, 2027.
Investment debate: Union vs. Government
The coalition argues that the proposed measures will increase investment certainty, promote job creation, increase productivity and position economic management as an alternative to the current regulatory framework for workers.
Future elections are set up to test whether voters view these changes as necessary economic reforms.
Bran Black, of Australia’s Business Council, points out that what really matters about making Australia an attractive investment destination is getting the industry-related, tax, planning and regulatory regimes – the basics right.
He also emphasizes that energy costs remain a critical issue.
“There is little evidence of progress in these fundamental and important reforms. Instead, despite the increased global competition, that’s the opposite. When I talk to CEOs and directors, their No. 1 concern is that Australia is not as competitive as it attracts investment from other countries,” Black said.
