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SINGAPORE-AUSTRALIA FREE TRADE AGREEMENT (SAFTA) |
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ANNEX 4-II(A)
AUSTRALIAíS RESERVATIONS TO CHAPTER 7 (TRADE IN SERVICES) AND CHAPTER 8 (INVESTMENT)
Sector All
Sub sector -
Industry -
classification
Type of
Reservation
Market Access
National Treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measure
with respect
to the supply of a service by the presence of natural
persons, or other
movement of natural persons, including immigration, entry or temporary stay,
subject to the provisions of
the Chapter 11 (Movement of Business
Persons).
Existing -
Measures
4-II(A)-1
Sector All
Sub sector -
Industry
classification
Type of
Reservation
-
Market Access
National Treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measure
according
preferences to any indigenous person or organisation or providing for the
favourable treatment of any indigenous
person or organisation in relation to
acquisition, establishment or operation of any commercial or industrial
undertaking in the
service sector.
Australia reserves the right to adopt or maintain any measure with respect to
investment that accords preferences to any
indigenous person or organisation
or providing for the favourable
treatment of any indigenous person or
organisation.
For the purpose of this reservation, an indigenous person means a person of the Aboriginal race of Australia or a descendent of an indigenous inhabitant of the Torres Strait Islands.
Existing
Measures
Legislation and ministerial statements at all levels of
government
including Australiaís foreign investment policy, which
encompasses the Foreign Acquisitions and Takeovers Act 1975 and the
Native Title Act.
4-II(A)-2
Sector All
Sub sector -
Industry
classification
Type of
Reservation
-
Market Access
National Treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measure
with respect
to proposals by ëforeign interestsí to invest in Australian urban
land (including interests that arise via leases, financing and profit sharing
arrangements and the acquisition of interests in urban land corporations and
trusts).
Existing
Measures
Australiaís foreign investment policy, which comprises
the:
Foreign Acquisitions and Takeovers Act 1975
(FATA);
Foreign Acquisitions and Takeovers Regulations;
and
Ministerial statements.
Prior Government approval is required where they involve the following acquisition of urban lands:
acquisition of developed non-residential commercial real estate, where the property is subject to heritage
listing, valued at $A5 million or more;
acquisition of
developed non-residential commercial
real estate, where the property is not subject to heritage
listing, valued at $A50 million or more;
acquisition of accommodation facilities irrespective of value;
acquisition of vacant urban real estate irrespective of value;
acquisition of residential real estate irrespective of value; or
proposals where any doubt exists as to whether they are notifiable. (Funding arrangements that include debt instruments having quasi-equity characteristics will be treated as direct foreign investment.)
A ëforeign interestí is defined as:
a natural person not ordinarily resident in Australia;
a
corporation in which a natural person not ordinarily
4-II(A)-3
resident in Australia or a foreign corporation holds a controlling interest;
a corporation in which 2 or more persons, each of whom is either a natural person not ordinarily resident in Australia
or a foreign corporation, hold an aggregate controlling interest;
the trustee of a trust estate in which a natural person not ordinarily resident in Australia or a foreign corporation holds a substantial interest; or
the trustee of a trust estate in which 2 or more persons, each
of whom is either a natural person not ordinarily resident in
Australia or a foreign corporation, hold an aggregate
substantial interest.
A ësubstantial interestí occurs when a single foreigner (and any associates) has 15 per cent or more of the ownership of any corporation, business or trust.
An ëaggregate substantial interestí occurs when several
foreigners (and any associates) have, in aggregate, 40 per cent or
more of the ownership of any corporation, business or trust.
A ëcontrolling interestí will be as defined in section 9 of the
FATA.
A ësubstantial interest in a trust estateí will be as defined in section 9A of the FATA.
Proposed acquisitions of residential real estate are exempt from examination in the case of:
Australian citizens living abroad purchasing either in their own name or through an Australian corporation or trust;
foreign nationals purchasing (as joint tenants) with their
Australian citizen spouse; and
foreign nationals who are the holders of permanent resident visas or are holders, or are entitled to hold, a 'special
category visa' purchasing either in their own name or through an Australian corporation or trust.
Full details are available at www.firb.gov.au.
4-II(A)-4
Sector All
Sub sector -
Industry -
classification
Type of
Reservation
Market Access
National Treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measure
with respect
to:
a) the devolvement to the private sector of services provided in the exercise of governmental authority at the time that the Agreement comes into force; and
b) the privatisation of government owned entities or assets.
Existing
Measures
4-II(A)-5
Sector All
Sub-sector -
Industry -
classification
Type of
Reservation
Market Access
National Treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measure
with respect
to the provision of public law enforcement and correctional services, and the
following to the extent that they are social services established for a public
purpose: income security
or insurance, social security or insurance, social
welfare, public
education, public training, health, child care, public
utilities and public transport.
Existing -
Measures
4-II(A)-6
Sector Agriculture
Sub-sector -
Industry -
classification
Type of
Reservation
Market Access
National Treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measures
with
respect to marketing boards.
Existing -
Measures
4-II(A)-7
Sector Media
Sub-sector -
Industry
classification
Type of
Reservation
-
Market Access
National Treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measure
with respect
to foreign investment in the media sector, including broadcasting, audiovisual
services and newspapers.
Existing
Measures
(a) Australiaís foreign investment policy, which comprises the:
- Foreign Acquisitions and Takeovers Act 1975;
- Foreign Acquisitions and Takeovers Regulations; and
Ministerial Statements.
All proposals by foreign interests for direct (ie, non-portfolio) investment in the media sector irrespective of size are subject to prior approval under the Government's foreign investment policy. Proposals involving portfolio shareholdings of 5 per cent or more must also be submitted for examination.
Foreign investment in mass circulation national, metropolitan, suburban and
provincial newspapers is restricted. All proposals
by foreign interests to
acquire an interest of 5 per cent or more in
an existing newspaper or to
establish a new newspaper in
Australia are subject to case-by-case
examination.
For national and metropolitan newspapers, the maximum permitted aggregate foreign interest direct (non-portfolio) investment/involvement is 30 percent with any single foreign shareholder limited to a maximum interest of 25 per cent.
For provincial and suburban newspapers, aggregate foreign
interest direct
involvement is limited to less than 50 per cent for non-portfolio
shareholdings.
4-II(A)-8
Financial arrangements designed to avoid limits are treated as if
they were directly covered.
(b) The Broadcasting Services Act 1992 (BSA).
While proposals for a foreign person to acquire an interest in an existing broadcasting service or to establish a new broadcasting service are subject to case-by-case examination under foreign investment policy, the following criteria must also be satisfied.
Foreign interests in commercial television broadcasting services
are limited to a 15 per cent company interest for individuals and a
20 per cent company interest in aggregate. A foreign person is
prohibited from being in a position to exercise control of a commercial television licence. The BSA outlines when such control is deemed to exist. No more than 20 percent of the directors of each commercial television licensee may be foreign persons.
For each subscription television broadcasting licence, foreign interests are limited to a 20 per cent company interest for an individual and a 35 per cent company interest in aggregate.
Financial arrangements designed to avoid limits are treated as if they were directly covered.
4-II(A)-9
Sector Communication Services, and Recreational, Cultural and
Sporting Services
Sub-sector Broadcasting and audiovisual, entertainment and cultural services
Industry -
classification
Type of
Reservation
Market Access
National Treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measure
with respect
to:
- the creative arts,1 cultural heritage2 and other cultural industries, including audiovisual services, entertainment services and libraries, archives, museums and other cultural services;
- broadcasting and audiovisual services, including measures with respect to planning, licensing and spectrum management, and including:
. services offered in Australia;
. international services originating from Australia.
Existing
Measures
Broadcasting Services Act 1992
Radiocommunications Act 1992
There are minimum Australian content requirements for commercial television.
1 ëCreative artsí include: the performing arts ñ including theatre, dance and music ñ visual arts and craft, literature, film, television, video, radio, creative on-line content, indigenous traditional practice and contemporary cultural expression, and digital interactive media and hybrid arts work which uses new technologies to transcend discrete artform divisions.
2 ëCultural heritageí includes: ethnological, archaeological, historical, literary, artistic, scientific or technological moveable or built heritage, including the collections which are documented, preserved
and exhibited by museums, galleries, libraries, archives and other heritage collecting institutions.
4-II(A)-10
Sector Wholesale trade services and retail trade services
Sub-sector Wholesale trade services and retail trade services of alcoholic
beverages and tobacco.
Industry
classification
6222, 6310
Type of
Reservation
Market Access
National Treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measure
with respect
to wholesale trade services of tobacco products and
alcoholic beverages.
Australia reserves the right to adopt or maintain any measure with respect to retail trade services of tobacco products and alcoholic beverages.
Existing -
Measures
4-II(A)-11
Sector Education services
Sub-sector Primary education services
Industry
classification
921
Type of
Reservation
Market Access
National Treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measure
with respect
to primary education.
Existing -
Measures
4-II(A)-12
Sector Education services
Sub-sector Education services other than primary education services
Industry
classification
922, 923, 924, 929
Type of
Reservation
National Treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measure
with respect
to the supply of educational services through commercial presence.
Existing
Measures
4-II(A)-13
Sector Financial services
Sub-sector Insurance and insurance related services.
Industry -
classification
Type of reservation
Market Access
National Treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measure with
respect
to cross border supply or consumption abroad of insurance intermediation, such
as brokerage and agency.
Australia reserves the right to adopt or maintain any measure with respect to
cross border supply or consumption abroad of direct
life and non-life
insurance (including co-insurance), other than insurance of risks relating to
maritime shipping, commercial
aviation, space launching, freight (including
satellites) and goods in international transit.
Existing Measures -
4-II(A)-14
Sector Financial services
Sub-sector Banking and other financial services (excluding insurance)
Industry -
classification
Type of
reservation
National treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measure with
respect
to the guarantee by the Commonwealth government of
Commonwealth-owned
entities which may conduct financial operations.
Existing Measures -
4-II(A)-15
Sector Financial services
Sub-sector Banking and other financial services (excluding insurance).
Industry -
classification
Type of reservation
Market Access
National Treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measure with
respect
to cross-border supply of banking and other financial services including
intermediation, but not including the provision and transfer of financial
information, financial data processing
and related software by suppliers of
other financial services,
advisory and other auxiliary services.
Existing Measures -
4-II(A)-16
Sector Gambling and Betting
Sub-sector -
Industry -
classification
Type of
Reservation
Market Access
National Treatment
Description of
Reservation
Australia reserves the right to adopt or maintain any measure
with respect
to gambling and betting.
Existing
Measures
Legislation and ministerial statements including the
Interactive
Gambling Act 2001.
4-II(A)-17
Sector Maritime Transport
Sub-sector Coastal shipping
Industry
classification
7211, 7212
Type of
Reservation
Market Access
National Treatment
Description of
Reservation
Australia reserves the right to maintain or adopt any measure
with respect
to maritime cabotage services and offshore transport
services.
For the purposes of this reservation, cabotage is defined as the transportation of passengers or goods between a port located in Australia and another port located in Australia and traffic originating and terminating in the same port located in Australia.
Offshore transport refers to shipping services involving the transportation of passengers or goods between a port located in Australia and any location associated with or incidental to the exploration or exploitation of natural resources of the continental shelf of Australia, the seabed of the Australian coastal sea and the subsoil of that seabed.
Existing
Measures
Navigation Act 1912 supported by Migration Act 1958,
Customs
Act 1901, Workplace Relations Act 1996,
Seafarersí
Compensation and Rehabilitation Act 1992,
Occupational Health and Safety (Maritime Industry) Act 1993, Shipping
Registration
Act 1981 and Income Tax Assessment Act
1936
Currently, authorisation to carry coastal cargo is subject
to
compliance with relevant provision of the above legislation.
4-II(A)-18
Sector Transport
Sub-sector -
Industry -
classification
Type of Reservation Market Access
National Treatment
Description of
Reservation
Australia reserves the right to maintain or adopt any measure
with respect
to investment in federal leased airports.
Existing Measures Airports Act 1996
Airports (Ownership-Interests in Shares) Regulations 1996
Airports Regulations 1997
4-II(A)-19