Further evidence has emerged that the Abbott Governments increase in red tape is making Australia less attractive to foreign investors.

The Australian Food and Grocery Council has expressed concernstoday that half the food processing and manufacturing sector and almost all dairy companies in Australia would be captured by the Governments proposed changes to foreign investor rules.

The changes mean agribusiness purchases over $55 million would require Foreign Investment Review Board (FIRB) approval.

The Governments change to the definition of investment could also deter existing farm or food manufacturing businesses from making new investments to upgrade their facilities.

The increase in red tape specifically targets agriculture and agribusiness sectors which need foreign capital to take advantage of growth opportunities in our region.

Since the election the Abbott Government has imposed extensive new layers of red tape on foreign investment in Australia witha raft of new barriers and costs for international investors seeking to grow businesses and create jobs in Australia.

Despite its claim that Australia is open for business, the Abbott Government has also imposed $735 million in new charges for investors lodging FIRB applications.

The Abbott Governments new rules on investment screening thresholds, fees, charges and penalties for investors run to seven pages of bureaucratic red tape.

They contain 22 different screening thresholds and categories, which vary depending on the value and type of investment and on the nationality of the investor, and 33 different levels and categories of application fees, ranging from $5,000 to $100,000.

Trade and Investment Minister Andrew Robb's red tape roll-out is making Australia a less attractive investment destination.