Foreign company rule changes welcomed
The financial services industry has welcomed the Federal Government’s announcement that it intends introducing legislation rewriting the controlled foreign company and foreign accumulation fund rules to attract more companies to Australia.
Among the companies backing the move is Fidelity with its managing director, Gerard Doherty, saying the draft legislation would add to the attractiveness of Australia as a regional financial services centre.
“The proposed reforms will improve the competitiveness of the Australian funds management industry as it leads to a broader range of product offerings and a reduction in compliance costs, which will ultimately be good for local investors,” Doherty said.
Announcing the move, Federal Assistant Treasurer Bill Shorten said it was consistent with the package of reforms contained in the Budget related to Australia’s foreign source income attribution rules.
“This package of reforms will improve the competitiveness of Australian companies with offshore operations by reducing the costs of complying with the controlled foreign company rules,” he said.
Shorten said the changes would also encourage foreign groups to establish regional headquarters in Australia and improve Australia’s attractiveness as a continuing base for multinational companies.
At the same time as announcing the release of exposure draft legislation around the changes, Shorten announced a further round of consultation with the industry before it was ultimately taken to the Parliament.
AUTHOR
Mike Taylor
Recommended for you
ASIC has permanently banned a financial adviser after he allegedly concealed information from clients and misused client funds, among other breaches.
Disgraced adviser Joshua Fuoco described himself as the “biggest monkey” at AFSL Group and provided financial advice via WhatsApp, all while being banned for 10 years, court documents show.
The Compensation Scheme of Last Resort has released the FY26 revised levy estimate, but the FAAA is concerned costs will be pushed into the following year.
Former Iress chief executive, Andrew Walsh, has been promoted to chair of a boutique Sydney advisory firm, having stepped down from the same position at Mason Stevens.
