FOREIGN BUYING OF AUSSIE RURAL LAND HAS NEW TEST

MELBOURNE, April 12 (Bernama) -- The Australian government is proposing to
introduce another national interest test if foreigners plan to buy rural land in
Australia, an inquiry has heard.

Under a proposed bill, foreign investors who want to buy more than five
hectares of agricultural land would have to notify the Treasurer, the
Australian Associated Press reported.

There is an existing national interest test for proposed foreign purchases
of agricultural land.

Department of Treasury Senior Adviser John Hill said the bill would mean
investors would face two tests which could create confusion and hamper
investment.

"We have got one national interest test that will apply to agricultural land
and we have got another national interest test that will apply to everything
else.

"There can be situations where they might be an overlap for investors such
that it's not clear to them which tests apply," Hill told a Senate Economics
Committee inquiry in Canberra Tuesday.

This dichotomy could hamper investment as potential investors would be
unsure about their standing, he said.

Principal Adviser to Treasury's Foreign Investment and Trade Policy Division
Frank Di Giorgio said the proposed bill could also change the classification
for rural land.

"It also risks elevating the sensitivity of agricultural land applications
to a level above that of all other forms of investment, which might be
problematic from an investment encouragement perspective.

"The dual national interest test also potentially reduces flexibility in
assessments.

"We also observed that the regulatory changes proposed could cut across the
stand still provisions that Australia has incorporated into its various free
trade agreements," Di Giorgio said

The Foreign Acquisitions Amendment (Agricultural Land) Bill was introduced
into Parliament in November.