A furore has erupted over the decision to knock back a bid by a foreign-led consortium for Australia's largest single landholding, with Labor and a farmers body warning it risks future foreign investment.
Treasurer Scott Morrison halted the sale of S Kidman and Co properties, which cover about 1 per cent of Australia's land mass, to a consortium of Chinese and Australian companies on Friday.
Labor has slammed the treasurer's handling of the decision, calling it highly irregular and saying it creates uncertainty and confusion among foreign investors.
Senior Labor figures were critical of the timing of the decision, which was made nine days into the 90-day period allocated, and in the lead up to the federal election.
"Does anyone seriously believe the Liberal Party would have given a second thought to the Kidman property if they weren't looking down the barrel of an election?" Opposition Leader Bill Shorten asked reporters.
The National Farmers' Federation has also expressed concerns over the process, saying there needs to be greater certainty and transparency around the sale of agricultural land to foreign investors.
The government is defending its handling of the decision, with several ministers stressing Australia welcomes most foreign investment.
"Foreign investment is really important, but it's got to be the right foreign investment," Industry Minister Christopher Pyne told Sky TV.
