Australia

On 19 May 2026, the Australian Treasurer announced further reforms to the foreign investment framework, as noted on the official Foreign Investment in Australia government portal. The reforms build on a 2025 streamlining initiative and operate alongside the mandatory merger clearance regime that commenced 1 January 2026, under which the Australian Competition and Consumer Commission (ACCC) now conducts a separate competition assessment for a broad range of transactions previously reviewed solely under the foreign investment regime.

Foreign Investment in Australia (Australian Government) · 2026-05-19

The Australian Bureau of Statistics released updated International Investment Position supplementary statistics on 13 May 2026, incorporating revised estimates from the latest survey and administrative data with revisions extending back to 2007. The most recent quarterly data show Foreign Direct Investment net inflows of USD 10.5 billion in Q4 2025, up from USD 7.9 billion in the prior quarter, indicating continued positive momentum in inbound investment flows entering the reporting window.

Australian Bureau of Statistics · 2026-05-13

Australia's critical minerals sector is attracting heightened strategic interest from allied-country investors, partly as a consequence of Chinese export restrictions on critical inputs to global supply chains. Analysis from EY notes that Australia's strong institutional settings and export flexibility position it as a preferred destination for geostrategically motivated capital, particularly from investors seeking supply-chain diversification away from China.

EY Australia · 2026-05-22

The EU–Australia Free Trade Agreement (FTA) negotiations concluded on 24 March 2026, with both sides simultaneously announcing the conclusion of a modernised EU–Australia Agreement on Trade in Wine. The agreement, which covers trade and FDI-related areas per the original Council mandate, now moves toward legal scrubbing and ratification processes, representing the most significant bilateral trade development for Australia in the reporting period.

European Commission – Trade Policy · 2026-05-22

The Australia–United States Free Trade Agreement (AUSFTA) marked its 20th anniversary in the reporting window, prompting renewed policy debate about the bilateral relationship's future trajectory. Analysis from the United States Studies Centre, published 15 May 2026, notes that while the US is broadly retreating from market-access liberalisation, pathways remain through preferential regulatory alignment and investment cooperation, though potential US 'poison pill' clauses in future trade deals pose a structural risk to Australia's trade diversification strategy.

United States Studies Centre · 2026-05-15

Australia's expanded Defence Trade Controls Act (DTCA) export control obligations entered their post-transition enforcement phase in 2026, with the Chambers and Partners International Trade guide noting that the next 12 months may see increased regulatory activity and that businesses will need updated internal export controls policies aligned with Australia's national security intentions. The Anti-Dumping Commission (ADC) continues to administer anti-dumping and countervailing duty investigations under Part XVB of the Customs Act 1901, with legislative amendments from a recent review expected to be implemented during 2026.

Chambers and Partners – Global Practice Guides · 2026-05-22

The Reserve Bank of Australia (RBA) Monetary Policy Board raised the official cash rate by 25 basis points to 4.35% at its 5 May 2026 meeting—the third consecutive increase in 2026—citing persistent inflation driven by Middle East conflict-related energy price shocks and pre-existing domestic capacity pressures. The RBA's May 2026 Statement on Monetary Policy projects headline inflation peaking at 4.8% in the June quarter 2026, with underlying inflation remaining above 3% until mid-2027, and GDP growth forecast to run below trend through the year.

Reserve Bank of Australia · 2026-05-19

Commonwealth Bank of Australia (CBA) economists, following the May rate decision, revised their base case to a hold for the remainder of 2026, though they flagged that risks remain skewed toward a further increase. CBA data indicate Australian consumers have remained relatively resilient to date, with limited evidence of a broad spending slowdown despite weak consumer sentiment, though early signs of pullback are emerging in travel and selected discretionary categories.

Commonwealth Bank of Australia · 2026-05-19

The RBA's May 2026 outlook notes that Australia's terms of trade have been revised modestly higher, reflecting an upgraded export price forecast for LNG and thermal coal linked to the Middle East conflict. Iron ore export growth is forecast to slow over 2026 as inventory rebuilding in China normalises, while investment growth is expected to continue in sectors with structural tailwinds including software and data centres.

Reserve Bank of Australia – Statement on Monetary Policy May 2026 · 2026-05-19

The Competition and Consumer Amendment (Unfair Trading Practices) Bill 2026, introduced in the House of Representatives on 1 April 2026, was pending Senate debate as of the 12–14 May 2026 sitting period. The Bill introduces a general prohibition on unfair trading practices toward consumers, stronger disclosure obligations to combat drip pricing, and new subscription contract requirements, with application from 1 July 2027 if passed.

Gilbert + Tobin · 2026-05-14

Australia's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Tranche 2 reforms, administered by AUSTRAC, take effect 1 July 2026, extending AML/CTF obligations for the first time to professional services sectors including lawyers, accountants, and real estate agents. Enrolment with AUSTRAC via a new online form has been open since 31 March 2026, and AUSTRAC has indicated its 2026 enforcement focus will target digital assets, cash-intensive businesses, and complex transfer-of-value arrangements.

AUSTRAC · 2026-05-22

The Office of the Australian Information Commissioner (OAIC) published a May 2026 regulatory round-up covering active consultations on automated decision-making transparency guidance and a draft Children's Online Privacy Code, alongside a Treasury consultation paper on curbing lead generation activity. These developments follow the OAIC's signalled shift to proactive compliance sweeps and its 2026 enforcement priorities targeting the rental and property, credit reporting, data brokerage, and advertising technology sectors.

IAB Australia · 2026-05-21