Submission to Review of the Security Legislation Amendment (Critical Infrastructure) Bill 2020 and Statutory Review of the Security of Critical Infrastructure Act 2018

The proposed changes to the Security of Critical Infrastructure Act 2018 (SOCI Act) risk impeding the market efficiency of business investment activity within our domestic economy both now and in the future.

As a net importer of capital, Australia’s economy relies on a dependable and steady flow of foreign capital to drive economic growth and job creation. To fund our national recovery, Australian businesses need prompt and reliable access to capital from domestic as well as offshore investors. The proposed changes to the SOCI Act, through its links to the Foreign Acquisition and Takeovers Act, have the potential to impede the ability of Australian business to access this vitally important funding.

Analysis by the Australian Investment Council shows that of the Australian private equity and venture capital deals between 2010 and August 2020, the number of deals potentially brought within scope of an expanded SOCI Act would:

  • Increase from 1.8% and 55.1% for private equity; and
  • Increase from 3.3% and 56.8% for venture capital.


Private Equity and Venture Capital deals currently and potentially captured by (expanded) SOCI Act deals from 2010 to August 2020

Sources: Preqin and Australian Investment Council, 2020


Click here to view the submission.