1. New Business Exemption Certificate
19 July 2017

2. 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

3. 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

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

5. 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.

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

7. 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

8. 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

9. 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.

10. 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).

11. 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.

12. 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

13. 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

14. Questions?