Overseas Investment Act 2005

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Exemptions in respect of overseas investments in sensitive land involving forestry rights

6 Area of forestry right less than 1 000 hectares

(1)

A transaction does not require consent for the purposes of section 10(1)(a) to the extent that it will result in an overseas investment in sensitive land (the relevant forestry investment) if—

(a)

the relevant forestry investment is the acquisition of a forestry right (the relevant forestry right); and

(b)

the area of the relevant forestry right is less than 1 000 hectares.

(2)

Subclause (3) applies to a transaction that will result in an overseas investment in sensitive land (the relevant forestry investment) if—

(a)

the relevant forestry investment is the acquisition of rights or interests in securities of a person who owns or controls (directly or indirectly) a forestry right that is an interest in land described in section 12(1)(a) (the relevant forestry right); and

(b)

the area of the relevant forestry right is less than 1 000 hectares.

(3)

To the extent that the transaction will result in the relevant forestry investment, it does not require consent for the purposes of section 10(1)(a) in relation to the relevant forestry right.

(4)

Subclause (1) or (3) (as the case may be) does not apply if, immediately after the relevant forestry investment is given effect to, the sum of the following areas is 1 000 hectares or more:

(a)

the area of the relevant forestry right:

(b)

the combined area of all unconsented forestry rights—

(i)

that related forestry investors acquire (or are treated as acquiring) in the same calendar year as that in which the relevant forestry investment is given effect to; and

(ii)

that are for a total term (as calculated in accordance with Schedule 1A) of 10 years or more.

(5)

For the purposes of subclause (4)(b),—

(a)

related forestry investor means—

(i)

the person who makes the relevant forestry investment; or

(ii)

any associate of that person; or

(iii)

a body corporate related to that person or to any associate of that person (as determined in accordance with section 12(2) of the Financial Markets Conduct Act 2013); and

(b)

a related forestry investor (B) is treated as acquiring a forestry right if—

(i)

B acquires rights or interests in securities of a person (C) who owns or controls (directly or indirectly) the forestry right and, as a result of the acquisition, B has (either alone or together with B’s associates) a more than 25% ownership or control interest in C; or

(ii)

the forestry right comes under the ownership or control (direct or indirect) of a person in whom B has (either alone or together with B’s associates) a more than 25% ownership or control interest; and

(c)

it does not matter if a forestry right is acquired (or treated as acquired) by a related forestry investor before the relevant forestry investment is given effect to.

(6)

In this clause, area, in relation to a forestry right, means the area of land covered by the forestry right (including any right, whether of the grantor or grantee, to have the original area increased).

(7)

In this clause, unconsented forestry right means a forestry right that is acquired otherwise than in reliance on any of the following:

(a)

a consent:

(b)

an exemption in, or an exemption granted under, this Act or the regulations (other than an exemption under this clause).

Schedule 3 clause 6(4)(b): amended, on 16 August 2022, by section 10(1) of the Overseas Investment (Forestry) Amendment Act 2022 (2022 No 42).

Schedule 3 clause 6(4)(b)(ii): replaced, on 5 July 2021, by section 35(3) of the Overseas Investment Amendment Act 2021 (2021 No 17).

Schedule 3 clause 6(5): amended, on 16 August 2022, by section 10(2) of the Overseas Investment (Forestry) Amendment Act 2022 (2022 No 42).

Schedule 3 clause 6(5)(b)(i): amended, on 16 June 2020, by section 56(4) of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).

Schedule 3 clause 6(5)(b)(ii): amended, on 16 June 2020, by section 56(4) of the Overseas Investment (Urgent Measures) Amendment Act 2020 (2020 No 21).

Schedule 3 clause 6(7): inserted, on 16 August 2022, by section 10(3) of the Overseas Investment (Forestry) Amendment Act 2022 (2022 No 42).