New Business Exemption Certificate 19 July 2017

Overview New business exemption certificate Changes to Fees Policy rationale Criteria for applications Coverage of certificates Process/timelines/variations Treasurer’s reserve powers Changes to Fees

Policy rationale for the business exemption certificate To reduce the administrative burden associated with investors needing to seek multiple approvals for low risk transactions This enables broad pre-approval for actions involving entities and businesses. App 3 App 1 Exemption certificate App 4 App 2

Coverage of the business exemption certificate Potentially broad Designed for routine/low risk transactions Small dollar value Investment funds

Covered sectors? No specific exclusions but sensitive areas may include: Sensitive businesses (media, telecommunications, transport etc.) Critical infrastructure assets Sectors likely to raise competition issues.

Duration of exemption certificates 12 months or more (Noting the longer the duration the harder it may be to assess the national interest).

Coverage of certificates Covers a range of structures No restrictions on subsidiaries being covered – but they must be identified as part of the application process. Can also cover yet to be established subsidiaries

Coverage of certificates Foreign person A Acquisition covered by the exemption certificate Company B Bolt on acquisitions can be covered by an exemption certificate Bolt on acquisition Bolt on acquisition Bolt on acquisition

Process/Timelines/Variations Likely to take longer than a standard application. Providing the required information upfront will assist in the timely processing of applications. Request for variations can be made which will be considered on their merits. If a major change it may require a new application.

Treasurer’s reserve powers For some exemption certificates there is the possibility the Treasurer may decide to still continue to treat the actions as significant actions. This means that the Treasurer would apply reserve powers if the action is later determined as contrary to the national interest (for very rare actions only).

Interaction with Land Exemption Certificate The Business exemption certificate has been designed to interact with the land exemption certificate. No additional fee will be applicable for the land exemption certificates.

Streamlining and simplifying commercial fee framework Key changes Three new fee tiers Introduction of foreign government investor lower fee rules Broadened majority owners fee rules

Majority owners lower fee rules Majority owners lower fee rule ($2,000 fee will apply where a foreign person holds more than 50 per cent in the land, entity or assets and is increasing that interest). $2,000 fee to increase the following Company A Company B Company C 51% interest 51% interest 51% interest Entity Land entity Land

Questions?