Foreign Arrangements Scheme

This page provides an overview of the Foreign Arrangements Scheme (FAS) and how it applies to University made arrangements.

Any foreign arrangement that meets the legislative criteria must be notified to the Minister for Foreign Affairs. The University has a compliance review process to manage this process. These details are provided below.

  • What is the Foreign Arrangements Scheme (FAS)?

    The establishes a formal notification process that applies to all Australian public universities. The Scheme is established by the (the Act). Public universities are included in the definition of “State/Territory entities” along with all Australian State, Territory and local governments.

    The Foreign Arrangements Scheme legislative summary diagram provides an overview of the operation of the Scheme.

    Any foreign arrangements in operation or established from 10 December 2020 must be notified under the Scheme.

    Global Engagement and ICS through Research Services are authorised to lodge and maintain records of notifications made on behalf of the University.

  • What is the purpose of FAS?

    The purpose of the Act is to protect and manage Australia’s foreign relations. The FAS is the statutory notification and assessment process managed by the Department of Foreign Affairs and Trade (DFAT) to support compliance with the Act.

  • What is a foreign arrangement?

    A foreign arrangement is a written agreement, contract, understanding or undertaking between an Australian State/Territory entity and a foreign entity, whether or not there are any other parties to the arrangement or whether it is legally binding or not. It may include MOUs or formal proposals set out in emails. Types of arrangements include:

    • Research collaboration between 2 universities
    • Establishing student exchange or mobility programs
    • Collaboration between academics on a workshop or conference presentation
    • Arranging cultural activities

    Any subsidiary arrangements that are entered into as a consequence of, or for the purpose of implementing, the “head” foreign arrangement must be included in the notification.

    A due diligence assessment will help determine whether an arrangement is caught by the Scheme by determining whether it involves a foreign entity.

  • What is a foreign entity?

    A foreign entity is defined by the Act to include foreign governments (at all levels), their agencies and related public institutions. This would include universities that do not have institutional autonomy because it is subject to substantial control by a foreign government. Indicators of substantial government control of a university may be evident in the laws of the foreign country; the institution’s governance arrangements; laws or rules that require academics to conform to specific political ideas in their teaching and research. Some helpful due diligence resources are available on the About your foreign partner webpage.

    A detailed table setting out the legislative criteria for foreign entities is provided in page 2 oftheFAS due diligence explainer.

  • What does the University have to do?

    The University must notify the Minister for Foreign Affairs that it:1. proposes to enterԻ2. has entered into an arrangementwith aforeign entity. This means that the University must generally make two notifications: 1. When an arrangement is certain but before it has been finalised (e.g., terms are being agreed); and 2. once the arrangement has been finalised (e.g., an agreement has been signed by the parties). An arrangement that has been finalised must be notified within 14 days.

    An arrangement between the University and aforeign entityis defined under the Scheme as a “non-core” foreign arrangement. This is different from a “core” foreign arrangement, which involves an Australian government entity and aforeign entity. It is possible that the University could be involved in a “core” foreign arrangement if, for example, the SA Government is a party. You should seek further advice from the Legal Services Branch about the obligations that may apply to core foreign arrangements.

    Australian entities involved in multi-party arrangements can agree on which entity will make the notification (usually the lead entity). The University has decided to notify all foreign arrangements to which it is a party, including multi-party agreements, even if it is possible that another party will also notify.

  • Who is authorised to make a notification for the University?

    Global Engagement and ICS through Research Services are authorised to make notifications on behalf of the University. Refer to “What do I need to do?” for more information about the University’s procedures for reviewing and notifying arrangements involving foreign partners.

  • What happens after a notification is made?

    Once notified by the University, an arrangement will be formally reviewed by the Department of Foreign Affairs and Trade and then listed on a public register. The Act also authorises the Minister for Foreign Affairs to

    • determine whether an arrangement is compatible with Australia’s foreign relations and policy
    • declare an arrangement to be invalid and unenforceable or that it must be altered or terminated
    • write to the University advising that a declaration has been made
    • seek a court injunction to stop the arrangement if an entity fails to notify an arrangement or disregards a formal notice. A Ministerial declaration would mean that the purpose of the arrangement cannot be given effect or held by the parties to be in effect. If the University receives such a declaration, it must take steps to notify the parties involved and cease all activities.

    Given the possibility that an arrangement may be disallowed, special contract clauses should be included in relevant agreements. Standard form contracts have been amended to include relevant clauses. Should a negative declaration be made, the consequences for any subsidiary (secondary) arrangements made under the auspices of the foreign arrangement will need to be considered. An arrangement is subsidiary to a foreign arrangement if it is not itself a foreign arrangement, but it has been anticipated by or supports the implementation of the 'head' foreign arrangement.

  • What information is considered by the Minister before making a Declaration?

    The purpose of the Scheme is to ensure that certain arrangements with foreign entitiesdo not adversely affect Australia's foreign relations and are not inconsistent with Australia's foreign policy.

    Where an assessment indicates the contrary, the Minister for Foreign Affairs may declare an arrangement to be invalid, unenforceable or require it to be alerted or terminated (depending on the nature of the arrangement). A declaration may also be applied to subsidiary arrangements.

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