- Finite & Non-Renewable Resources
- Jobs & Economy
It is a myth to suggest that Australia needs large-scale 'foreign investment'. 80 per cent of total investment capital in Australia's economy is local, but too much of it is being 'misallocated' into relatively unproductive assets like housing
"What the AFR’s phrase 'capital-importing Australia' obscures is that about 80 per cent of new capital deployed in Australia each year is formed right here. ABS data show that in the 12 months to March, new capital accumulated in Australia totalled $350 billion. Of that, $75 billion was imported." The New Daily
Our Housing and Jobs & Economy policies address this issue of capital misallocation.
Ensure that all foreign investment is in the long term national interest.
Policy Methods (Federal)
To help achieve this Sustainable Australia Party will:
- Clearly differentiate between foreign investment and foreign ownership.
- Restrict the purchase of all Australian natural resources, including land, water, minerals and energy resources to Australian citizens and minimum 75 per cent Australian-owned entities.(1)
- Restrict the purchase of Australian residential property and land for residential development (housing) to Australian citizens, longer term (5 year) permanent residents, and minimum 75 per cent Australian-owned entities (also see Housing policy).
- Determine a clearer definition of the national interest, with public consultation, and maintain a strict and long term interpretation of the national interest when assessing foreign investment proposals. To determine a clearer definition of the long term national interest, Australia should hold a national enquiry into the long term costs and benefits of foreign investment, foreign ownership and ‘free trade’ agreements, including impacts on our environment, local production (offshoring), local jobs, taxation revenue, inflation, balance of trade, foreign debt, profit flows and sovereignty.
"About 4192 direct and indirect jobs and $484 million in tax revenue has been lost through the offshoring of four projects in recent years." The New Daily
- Ownership of land is not necessary for a foreign entity to conduct business in Australia. Land can be rented or leased. Permitting foreign ownership of land causes land values to be inflated, increasing costs of production and costs of living for Australians. Agricultural, industrial and urban development can be financed by foreign (though preferably local) debt-raising, rather than majority equity sale.
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