Changes to the income tax treatment of the investment income of foreign funds will provide tax certainty for foreign investors investing in Australian managed funds, according to the chief executive of the Financial Services Council, John Brogden.
Brogden stated that the Federal Government’s changes would take away the uncertainty that currently exists, which can result in foreign investors being unfairly taxed.
“The Investment Manager Regime was a recommendation of the Financial Services Council to the Financial Centre Taskforce (Johnson Review) and we strongly support the Government’s initiative today,” Brogden said when the changes were announced.
“The importance of this change cannot be underestimated — it removes a major barrier to Australian-based fund managers attracting foreign investment,” he said, adding that it would also give Australian based fund managers the certainty they needed when competing internationally.
He said it was a major step towards Australia becoming a real global financial centre.
