The Australian Communications and Media Authority (ACMA) has accepted a court-enforceable undertaking from Tully Sugar, a subsidiary of Chinese agribusiness company COFCO, after Tully Sugar failed to disclose its 10% stake in Coastal Broadcasters, which operates three commercial radio stations in regional Queensland.

Under Australian regulations, foreign stakeholders with at least 2.5% ownership in Australian media companies must notify the ACMA of their company interests within 30 days after the end of each financial year. Tully Sugar, however, failed to lodge its foreign ownership notification for 2022-23 within the required timeframe, despite being warned for the same failure for 2021-22.

The court-enforceable undertaking requires Tully Sugar to conduct an independent audit of its compliance systems and processes and implement the auditor's recommendations. Tully Sugar will also be required to report to the ACMA on the actions taken.

"These rules are designed to provide greater transparency of foreign investment in Australian media companies," ACMA Chair Nerida O'Loughlin said. "Tully Sugar failed to lodge its foreign ownership notification for 2022-23 within the required timeframe after it had been warned when it failed to do so for 2021-22."

The information provided in foreign ownership notifications is used by the ACMA to update the Foreign Owners of Media Assets Register and to prepare an annual report to the Minister for Communications.