Australia's Northern Territory
An aerial view of a river system in Australia's Northern Territory November 23, 2014. The Arnhem Land reserve, closer to Bali than Sydney, covers an area of around 97,000 sq kms (37,000 sq miles), has a population of around 16,000 and access for non-Aborigines is by invitation only. Australia's aborigines are the custodians of the longest unbroken cultural tradition on earth, having migrated Down Under from Africa via Asia between 40,000 and 60,000 years ago, and connection to the land is practically written into their DNA. Reuters/David Gray

Amidst the subsiding mining boom and retreat of mining investors, Northern Australia is emerging as the new hot spot for investors as the government is marketing the region as the "next frontier" for growth and investment.

The peculiarity of Northern Australia is that its 40 percent land is inhabited by barely five percent of the population. The Australian government is now on an over drive to bring in more investor pie into Northern Australia where plenty of underused land is an attraction for investors.

The recent meeting of Northern Australia Investment Forum was significant as it showcased dozens of projects for 250 investors from 20 countries. The projects were from diverse sectors. From mining to prawn farming, tropical medicine and hotel development on the Darwin beachfront there were all kinds of projects, reports Straits Times.

Investment Forum

The Investment Forum was addressed by Minister for Trade and Investment Andrew Robb, who called up foreign investors to come with fairly big scale projects. About 95 percent of investment in Northern Australia is from the private sector.

According to experts, by 2040, Northern Australia will account for 42 per cent of the Australian economy, up from the present 35 percent share in the national economy. In January 2016, the government will open the Major Project Approval Agency in Darwin to speed up investments more than $50 million in the region.

“The government may help put some money in, but we're not looking to have this publicly funded,” Robb told reporters at the event.

“Like the huge iron ore mines, we expect these properties, these farms, to be big enough that they support the development of their own infrastructure. It's got to be big to be economic, do it on a big scale,” the Trade minister added.

Evincing interest in the region was Palm oil giant Wilmar International chief executive Kuok Khoon Hong, who said his Singapore-based company is exploring the possibility of more agriculture investments in the north. It is already running sugar mills in Queensland .

Foreign investment rules tightened

Meanwhile, Australia has introduced a new investment regime with tougher laws to crack down on foreigners breaching rules in the property sector and enhanced screening of investments in agriculture land and agri business, reports AFP.

"The government welcomes foreign investment that is not contrary to our national interest," said Treasurer Scott Morrison.

"Without foreign investment, production, employment and income would all be lower. But it is important that foreign investment is appropriately monitored to ensure that it benefits all Australians,” he added.

Agri land

Under the new rules, foreigners illegally buying Australian real estate will face jail term of three years with fines ranging from $135,500 for individuals and 675,000 for companies.

The new rules also stipulate forfeiting capital gains made on divestment of a property and fines will be slapped on third parties for any assistance to foreign investors in breaking the rules.

The Australian government also opened a new agricultural land foreign ownership register to monitor farmland investments by foreigners beyond $15 million. Such cases will be separately screened by the national regulator.

This marks a change from the past when Australian Foreign Investment Board would screen only foreign investment in agricultural land above $252 million. Similarly, exposure in agribusinesses valued at or above $55 million will also be reviewed by the Foreign Investment Review Board, under the new rules.

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