Investment Manager Regime Introduced to Parliament
Monday 25 June 2012 @ 9.30 a.m. | Taxation
New legislation will see changes to Australia’s income tax law aimed at making Australia a more attractive option for foreign investment. The Tax Laws Amendment (Investment Manager Regime) Bill 2012 will also promote employment growth in the financial services sector.
Bill Shorten, Minister for Financial Services and Superannuation, explains: "This bill will provide foreign managed funds and their investors with greater certainty as to the tax treatment of certain income of the fund and further the government's goal of establishing Australia as a regional financial centre. This is a complex area of policy and the government is determined to ensure that the legislation achieves its goal of improving Australia's standing as a financial services centre through greater certainty and transparency.”
The introduction of an Investment Manager Regime was recommended by the Australia Financial Centre Forum’s ‘Johnson Report,’ commissioned in 2008. According to the press release, the proposed legislation will implement the first two elements of that scheme, designed to:
* address the impact of the application of US accounting rules on managed funds investing in or through Australia
* exclude from Australian tax, for 2010-11 and later income years, certain income of widely held foreign funds that is taxable only because the fund uses an Australian based agent, manager or service provider
* remove uncertainty as to the tax treatment of 'conduit income' of managed funds as recommended by the Henry review.
Shorten has said that “the bill is a further step in the Gillard Government's commitment to building Australia as a financial centre. The government will continue to consult with industry in the development of the third element of the IMR. I call on all members of Parliament to support this legislation.”
Struggling to navigate through tax legislation? Sign up for a free trial to our Income Tax Point in Time Service and gain convenient and reliable access to complete histories of legislative provisions, compare changes over time and search for relevant content at any date.
