Australian business owners are being warned to stop ‘disloyalty’ as gaming industry opens to foreign investment
Posted On July 14, 2021
Business owners in Australia are being urged to stop “disloying” and “betrayal” their own interests by investing in the industry, as a wave of foreign investment continues to grow in the country.
Key points:A new foreign investment review will allow foreign firms to enter the Australian business market, including gamingThe review will also allow foreign investors to create new businesses in AustraliaBusiness owners in the Gaming Industry Association (GIA) are concerned that foreign investors could use gaming to further their own financial interestsAs well as giving the industry a greater voice, the review will open up opportunities for the industry to grow and compete with more established businesses, said GIA chairman Mark Crouch.
“This is a very exciting time in Australian business, and we want to see that grow,” Crouch said.
“This review will enable us to better manage the industry and to better protect it from the risks of foreign investors.”
The new foreign investor review is a way of ensuring that the gaming industry is as competitive as possible and that Australians are not left behind.
“Gambling is an integral part of Australian culture and we all know that Australian gaming is a hugely popular form of entertainment.
The review is expected to be published in late March, with foreign investors likely to begin investing in Australian gaming firms as early as June.
The Australian Government’s Department of Industry and Science (DIS) said foreign investors will be able to invest in gaming firms with a range of incentives, including access to the government’s new National Gaming Infrastructure Fund, access to high-quality government-backed infrastructure and investment in local businesses.
However, foreign investors have until June 30, 2019 to apply to be approved, and the Government will review the applications of foreign firms and their investors annually to ensure they are being used to the maximum extent possible, according to the department.
Foreign investors who invest in Australia will be required to disclose how much money they will have to invest and when they will receive their money, the department said.
Foreign investment in Australia is subject to an annual audit by the Government.
The gaming industry association said that while it was pleased that foreign investment had increased in recent years, it was concerned that the review was “deliberately politicised” and would be a hindrance to investment and the industry.”
It’s important that Australian businesses remain invested in the Australian gaming industry to create jobs, and there are clear risks that will arise when foreign investors come into the Australian market,” GIA chief executive Andrew Ritchie said.”
That is why we have raised the prospect of a review into the existing overseas investor market and are calling on the Government to act to ensure that we are protected and that Australian business interests are not diluted.””
The Australian gaming sector is a vital part of the economy and we have every confidence that the new foreign investments review will ensure that the industry continues to thrive and grow in our country.””
It is imperative that the Government is able to protect our industry and that foreign investments continue to flow into the game industry to keep the industry vibrant.
“Foreign investment into Australia is not a new phenomenon.
The government’s previous review of the overseas investment market concluded that foreign direct investment (FDI) had not led to any significant benefits for Australian consumers, despite the government spending billions of dollars in foreign direct funding.
Australia has the world’s second-highest FDI inflows after China, and Australia’s foreign direct debt to GDP ratio is among the highest in the world, according a recent Commonwealth Bank report.
Foreign firms have also sought to enter Australia in recent times to compete for the lucrative “bungie” contracts.
A study by the Australian Institute of Management (AIIM) in February estimated that there were more than 600 foreign firms in Australia, representing nearly 15 per cent of the Australian workforce.
The AIIM study also found that foreign firms had an overall negative impact on the Australian economy.”
Australia’s FDI is a key driver of economic growth and our foreign direct investments (FDC) program is an effective way of supporting Australia’s economy by fostering jobs, investment and job creation,” AIIM president Paul Beddington said.
The foreign investment advisory group for the GIA said it is concerned that these measures would not be effective if the review is not implemented.”
If we do not have a review, the Government cannot guarantee that all foreign investment is beneficial for Australian business.”GIA said that if the government does not take action, the industry would continue to lose out on significant government support, particularly through the Federal”
The Government needs to take steps to ensure it is fair to all Australians and the review must be conducted in a way that protects our industry, and our businesses.”
If we do not have a review, the Government cannot guarantee that all foreign investment is beneficial for Australian business.”GIA said that if the government does not take action, the industry would continue to lose out on significant government support, particularly through the Federal