The Auditor-General’s report How the Overseas Investment Office uses information was presented to the House of Representatives today.
In this report, we discuss how the Overseas Information Office (OIO) uses information to review applications from
potential overseas investors to advise Ministers (or, in certain cases, senior staff in the OIO) on whether consent for
the investment should be granted according to the criteria in the Overseas Investment Act 2005 and ministerial
direction. We wanted to know whether the OIO was collecting and using the right information at the right time to support
good decisions.
We found that the OIO provides decision-makers with the right information. The OIO collects, considers, and uses
information carefully in making recommendations. It applies judgement in considering whether the statutory criteria are
met. Although the files we reviewed showed that the OIO demonstrated effective judgement, it could sometimes benefit
from more ready access to specialist advice.
There are other elements of the OIO’s use of information that can be improved. These include the nature of conditions
placed on consents, the information that the OIO makes available to the public about overseas investments and their
benefits, and the use of information for monitoring and enforcement of the conditions placed on consents.
As we were carrying out our work, the OIO was improving the way it monitors and enforces compliance with the conditions
it places on consents. Although it was too early for us to assess the effect of the changes the OIO has made, they
should improve the effectiveness and efficiency of the OIO. It is important that the OIO follows through with the
changes it has begun to make.
A two-page summary and epub of this report are also available.