Obligations Concerned : National Treatment
Market Access
Description : Aggregate foreign equity is restricted to no more than 35 per cent of shares of Telstra. Individual or associated group foreign investment is restricted to no more than five per cent of shares.
The Chairperson and a majority of directors of Telstra must be Australian citizens and Telstra is required to maintain its head office, main base of operations and place of incorporation in Australia.
Source of Measure : Telstra Corporation Act 1991 (Cth)
9. Sector : Health Services
Subsector : -
Level of Government : Central
Obligations Concerned : National Treatment
Description : The votes attached to significant foreign shareholdings (3) may not be counted in respect of the appointment, replacement or removal of more than one-third of the directors of Commonwealth Serum Laboratories (CSL) who hold office at a particular time.
The head office, principal facilities used by CSL and any CSL subsidiaries used to produce products derived from human plasma collected from blood or plasma donated by individuals in Australia must remain in Australia.
Two-thirds of the directors of the board of CSL and the Chairperson of any meeting must be Australian citizens. CSL must not seek incorporation outside of Australia.
Source of Measure : Commonwealth Serum Laboratories Act 1961 (Cth)
10. Sector : Transport Services
Subsector : -
Level of Government : Central
Obligations Concerned : National Treatment
Local Presence
Description : Every ocean carrier who provides international liner cargo shipping services to or from Australia must, at all times, be represented by a natural person who is resident in Australia.
Only a person (4) affected by a registered conference agreement or by a registered non-conference ocean carrier with substantial market power may apply to the Australian Competition and Consumer Commission (ACCC) to examine whether conference members, and non- conference operators with substantial market power, are hindering other shipping operators from engaging efficiently in the provision of outward liner cargo services to an extent that is reasonable. For greater certainty, matters which are relevant to the determination of “reasonable” include Australia’s national interest and the interests of Australian shippers.
Source of Measure : Competition and Consumer Act 2010 (Cth)
11. Sector : Transport Services
Subsector : -
Level of Government : Central
Obligations Concerned : National Treatment
Market Access
Description : Total foreign ownership of individual Australian international airlines (other than Qantas) is restricted to a maximum of 49 per cent.
Furthermore, it is required that:
• at least two-thirds of the board members must be Australian citizens;
• the Chairperson of the board must be an Australian citizen;
• the airline’s head office must be in Australia; and
• the airline’s operational base must be in Australia.
Source of Measure : Air Navigation Act 1920 (Cth)
Ministerial Statements
12. Sector : Transport Services
Subsector : -
Level of Government : Central
Obligations Concerned : National Treatment
Market Access
Description : Total foreign ownership of Qantas Airways Ltd is restricted to a maximum of 49 per cent.
In addition:
• the head office of Qantas must always be located in Australia;
• the majority of Qantas’ operational facilities must be located in Australia;
• at all times, at least two-thirds of the directors of Qantas must be Australian citizens;
• at a meeting of the board of directors of Qantas, the director presiding at the meeting (however described) must be an Australian citizen; and
• Qantas is prohibited from taking any action to become incorporated outside Australia.
Source of Measure : Qantas Sale Act 1992 (Cth)
13. Sector : Transport Services
Subsector : -
Level of Government : Central
Obligations Concerned : National Treatment
Market Access
Description : The following functions and services are reserved to provision by the statutory authority, Airservices Australia: airspace management, air traffic flow information, air traffic control, traffic and flight information, navigation services, aeronautical information, and aerodrome rescue and fire- fighting services.
Source of Measure : Air Services Act 1995 (Cth)
Air Services Regulations 1995 (Cth)
Public Governance, Performance and Accountability Act 2013 (Cth)
14. Sector : Communication Services
Subsector : -
Level of Government : Central
Obligations Concerned : National Treatment Market Access
Most-Favoured-Nation Treatment
Description : Australia Post, a wholly-owned government entity, has the exclusive right to issue postage stamps and carry letters within Australia, whether the letters originated within or outside Australia. This includes:
• the collection within Australia of letters for delivery within Australia; and
• the delivery of letters within Australia.
This entry does not include:
• the carriage of a letter weighing more than 250 grams;
• the carriage of a letter within Australia for a charge or fee that is at least four times the rate of postage that is current at the time for the carriage within Australia of a standard postal article by ordinary post5; and
• other exceptions to the reserved services set out in section 30 of the Australian Postal Corporation Act 1989 (Cth).
Australia Post also has certain rights, powers and immunities ascribed only to it, such as the use and access to public land for the provision of postal and courier services.
Source of Measure : Australian Postal Corporation Act 1989 (Cth)
15. Sector : Financial Services
Subsector : -
Level of Government : Central
Obligations Concerned : National Treatment
Market Access
Description : A foreign bank located overseas is able to offer its services to Australian enterprises, but is not allowed to raise deposit funds in Australia or undertake business within Australia unless it is an authorised bank (or establishes a money market corporation, subsidiary, etc.).
Foreign banks located overseas may only raise funds in Australia through the issue of debt securities provided those securities are offered or traded in parcels of not less than AUD500,000 and the securities and any associated information memoranda clearly state the issuing bank is not authorised under the Banking Act 1959 (Cth) in Australia.
To undertake banking business in Australia an entity must be a body corporate and authorised as an authorised deposit-taking institution (ADI).
Foreign deposit-taking institutions (including foreign banks) may only operate a banking business in Australia through locally incorporated deposit-taking subsidiaries or authorised branches (foreign ADIs), or through both structures.
A branch of a foreign bank that is authorised as a deposit- taking institution in Australia (foreign ADI) is not permitted to accept initial deposits (and other funds) from individuals and non-corporate institutions of less than AUD250,000.
A representative office of a foreign bank is not permitted to undertake any banking business, including advertising for deposits, in Australia. Such a representative office is only permitted to act as a liaison point.
Source of Measure : Banking Act 1959 (Cth)
Payment Systems (Regulation) Act 1998 (Cth)
16. Sector : Financial Services
Subsector : -
Level of Government : Central
Obligations Concerned : National Treatment
Description : Liabilities of the Commonwealth Bank, previously Commonwealth Government-owned, are covered by transitional guarantee arrangements.
Source of Measure : Commonwealth Banks Act 1959 (Cth)
17. Sector : Financial Services
Subsector : Life insurance services
Level of Government : Central
Obligations Concerned : National Treatment Market Access
Most-Favoured-Nation Treatment
Description : Approval of non-resident life insurers is restricted to subsidiaries incorporated under Australian law.
Source of Measure : Life Insurance Act 1995 (Cth)
List B .
EXPLANATORY NOTES
1. This List B sets out, pursuant to Article 9.9 (Schedules of Non-Conforming Measures and Reservations - Trade in Services), the specific sectors, subsectors or activities for which Australia may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:
(a) Article 9.4 (National Treatment - Trade in Services);
(b) Article 9.5 (Most-Favoured-Nation Treatment - Trade in Services); or
(c) Article 9.6 (Market Access - Trade in Services);
(d) Article 9.7 (Local Presence - Trade in Services).
2. Each entry in this List B sets out the following elements:
(a) Sector refers to the sector for which the entry is made;
(b) Subsector where referenced, refers to the specific subsector for which the entry is made;
(c) Obligations Concerned specifies the obligations referred to in paragraph 1 that, pursuant to Article 9.9 (Schedules of Non-Conforming Measures and Reservations - Trade in Services), do not apply to the sectors, subsectors or activities listed in the entry;
(d) Description sets out the scope of the sector, subsector or activities covered by the entry; and
(e) Existing Measures where specified, identifies, for transparency purposes, a non- exhaustive list of existing measures that apply to the sectors, subsectors or activities covered by the entry.
3. In accordance with Article 9.9 (Schedules of Non-Conforming Measures and Reservations - Trade in Services), the Articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the sectors, subsectors and activities identified in the Description element of that entry.
4. For greater certainty, where Australia has more than one entry in this List B that could apply to a measure, each entry is to be read independently, and is without prejudice to the application of any other entry to the measure.
5. The UAE’s Schedule in Annex 9D (Schedules of Specific Commitments) or Annex 9E (Schedules of Non-Conforming Measures and Reservations) shall not be used to interpret Australia’s commitments or obligations under Chapter 9 (Trade in Services).
6. Commitments on measures with respect to or relating to trade in financial services are undertaken subject to the limitations and conditions set out in Chapter 9 (Trade in Services), Annex 9A (Financial Services), these Explanatory Notes and this List B.
7. Without prejudice to other means of prudential regulation, Australia reserves the right to require licensing or registration of financial service suppliers and of financial instruments.
8. For the avoidance of doubt, in relation to education services, nothing in Chapter 9 (Trade in Services) shall interfere with:
(a) the ability of individual education and training institutions to maintain autonomy in admissions policies (including in relation to considerations of equal opportunity for students and recognition of credits and degrees), in setting tuition rates and in the development of curricula or course content;
(b) non-discriminatory accreditation and quality assurance procedures for education and training institutions and their programmes, including the standards that must be met;
(c) government funding, subsidies or grants, such as land grants, preferential tax treatment and other public benefits, provided to education and training institutions; or
(d) the need for education and training institutions to comply with non-discriminatory requirements related to the establishment and operation of a facility in a particular jurisdiction.
1. Sector : All Sectors
Subsector : -
Obligations Concerned : National Treatment Market Access
Most-Favoured-Nation Treatment
Local Presence
Description : Australia reserves the right to adopt or maintain any measure that it considers necessary for the protection of its essential security interests.
Existing Measures : -
2. Sector : All Sectors
Subsector : -
Obligations Concerned : Market Access
Most-Favoured-Nation Treatment National Treatment
Local Presence
Description : The following investments are subject to approval by the Australian Government and may also require notification (6) to the Australian Government:
(a) a proposed investment by a foreign person in an entity or Australian business valued above $330 million; (7), (8)
(b) a proposed investment by a foreign person in an entity or Australian business valued above $330 million relating to a sensitive business or its assets;
(c) a proposed acquisition by a foreign person of an interest in an agribusiness where the cumulative value of the interest held by the foreign person in that agribusiness, alone or together with associates, including the proposed acquisition, is above $71 million;
(d) a proposed investment by a foreign person of five per cent or more in the media sector, regardless of the value of the investment;