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Tax Reform Expected to Lure More Foreign Funds to Australia |
| Source: |
The Australian |
| Source Date: |
Thursday, January 20, 2011 |
| Focus: |
Electronic and Mobile Government, Citizen Engagement, Internet Governance
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| Country: |
Australia |
| Created: |
Jan 24, 2011 |
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OFFSHORE fund managers are expected to invest more with local fund managers following yesterday's announcement tax changes for foreign funds. The Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, said the changes would ensure that non-residents investing in foreign assets would not pay further Australian tax on their investments when using Australian fund managers. The funds management industry has previously complained that uncertainty over the tax laws has deterred foreigners from using Australian fund managers to invest money offshore. The move forms part of the Gillard government's plan to transform the economy into a financial services hub in the Asia-Pacific region and follows last year's release of a report by the government's advisory board, the Australian Financial Centre Forum, headed by former Macquarie Group banker Mark Johnson. Mr Shorten said the change addressed a key finding of the Johnson Report that the tax law discouraged the use of Australian-based investment advisers and placed Australian fund managers at a disadvantage to foreign funds.
The report also found that the establishment of a broader so-called "investment manager regime" (IMR) in Australia would double the estimated $47 billion of offshore money invested in offshore assets via Australian fund managers. John Brogden, chief executive of the Financial Services Council, said the changes announced yesterday would provide tax certainty for foreign investors investing in Australian managed funds. "The importance of this change cannot be underestimated," he said. The move was "a major step towards Australia becoming a real global financial centre".The Board of Taxation is currently investigating the creation of an IMR that would capitalise on Australia's wealth management expertise by attracting more foreigners to invest their money with domestic managers.
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Tax Reform Expected to Lure More Foreign Funds to Australia OFFSHORE fund managers are expected to invest more with local fund managers following yesterday's announcement tax changes for foreign funds The Assistant Treasurer and Minister for Financial Services and Superannuation Bill Shorten said the changes would ensure that non-residents investing in foreign assets would not pay further Australian tax on their investments when using Australian fund managers The funds management industry has previously complained that uncertainty over the tax laws has deterred foreigners from using Australian fund managers to invest money offshore The move forms part of the Gillard government's plan to transform the economy into a financial services hub in the Asia-Pacific region and follows last year's release of a report by the government's advisory board the Australian Financial Centre Forum headed by former Macquarie Group banker Mark Johnson Mr Shorten said the change addressed a key finding of the Johnson Report that the tax law discouraged the use of Australian-based investment ad
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