The costs associated with applying for a FIRB licence under a lease agreement are calculated on the basis of the „value“ of the lease or the consideration to be paid under the lease during its lifetime. The consideration relates to the total rent and other ancillary payments required by the terms of the tenancy agreement for the duration of the tenancy agreement. FirB confirmed that there was no policy of waiving or reducing the usual application fees. Application fees are based on the highest land value (i.e. rents over time). For a total credit application of up to $10 million, an application fee of $2,000 is required. If total rents exceed $10 million, registration fees rise to $26,200. As a general rule, foreign persons who enter into a lease after 22:30 AEDT on 29 March 2020 (and for a period of more than 5 years) are subject to a monetary revision threshold of 0 USD and must therefore inform the FIRB. While this has always been the case, that the registration of certain leases by a „foreign person“ (as defined in the Foreign Acquisitions and Takeovers Act 1975 (FATA)) required the authorization of the FirB, prior to March 29, 2020, a foreign person was only required to notify the FIRB and obtain a „no objection“ prior to the conclusion of a lease agreement for Australian industry land , if: , due to the announcement of daily changes in the development of COVID-19. We reiterate that these measures are only announced as „temporary“ measures that will remain during the coronavirus crisis. However, for the time being, all new leases entered into after 10:30 p.m. on March 29, 2020 must require compliance with this new procedure and, as noted above, include a clause when the lease is subject to FIRB`s authorization.
Please feel free to introduce yourself if you need help, we are experienced in this area and ready to help your business if necessary. The „value“ of acquiring a leasehold interest in an Australian country relates to aggregate rent and other ancillary payments (such as parking fees or lease renewal or renewal fees) that are required under the lease for its duration. The duration of the lease includes the initial term, as well as any option or right of renewal if this right is included in the conditions of granting the initial term. The acquisition of a lease on commercial land or open commercial space leased to a foreign tenant has always been subject to a zero dollar threshold and there has been no change in the procedure for authorizing these leases. FIRB`s authorization must be obtained from a tenant who is a foreign person before the lease or facility agreement expires or the lease or lease becomes unconditional.