An overseas investor attempting to circumvent the requirements of the Overseas Investment Act 2005 has received the first criminal conviction under that legislation. In February 2020, Dr Won Joo Hur was fined $100,000 for falsely stating to the Overseas Investment Office (OIO) that a property was not purchased on his behalf and providing a false loan document to support his version of events.

The OIO continues to take civil enforcement action against overseas persons who do not seek consent for relevant land purchases. Since 2015, the OIO has successfully sought financial penalties in the High Court and required the disposal of property in a number of cases where the Act's requirements were not met by overseas investors. In one such case, the High Court ordered civil penalties totalling $2,970,256[1].

These cases are a reminder that getting things wrong in this area can have serious consequences. It's essential that you check whether you might need OIO consent for a purchase before entering into any Agreement for Sale and Purchase of Real Estate. Also, if there is any change to your company's directors during the consent process, you must update the OIO. Otherwise, you risk delaying the consent process or there could be other penalties.

If you or your company have overseas connections, we can help with assessing whether your property purchase requires OIO consent and to work through the consent process with you.