2023 M&A

M&A Developments FIRB update

Source: Victoria

Published Date: 16 Mar 2023


Sorry, this is subscriber only content.

If you're not yet a subscriber, to gain access to this material and much more - Subscribe Now.

Already a Subscriber? Login now

Already a Subscriber? Login now

Australia’s management of foreign investment through the Foreign Investment Review Board (FIRB) relies on the following legislation: the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA); the Foreign Acquisitions and Takeovers Regulation 2015 (Cth); the Foreign Acquisitions and Takeovers Fees Imposition Act 2015 (Cth); and the Foreign Acquisitions and Takeovers Fees Imposition Regulations 2020 (Cth).

The starting point of the framework is that foreign investment should be welcomed for the significant benefits that it provides. It is that fundamental proposition that has pushed the regime into one that does not aim to restrict/ prevent foreign investment in Australia in any way, but rather seeks to welcome and “manage” investment. At times, the manner in which it is managed may be considered overly robust.

The range of tax technical risks suitable for review during the FIRB process is limited by the pre-transaction nature of the review. This means risks associated with structuring decisions rather than operational concerns (ie taxes that can only be reviewed once a business is operating such as GST) are given far more weight. Importantly this means financing decisions are made during the initial deal stages are a major focus of the FIRB review process and frequently impact the risk ratings assigned by the ATO.

Individual Session

Author(s): Iain Tan , Charlotte Brierley , Joanna Black FTI
Materials from this session:


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


2023 M&A

Share this page