Richard Gilbert
The Federal Senate has passed a bill to reduce withholding taxes, a move attracting strong approval from the financial services industry.
Both the Investment and Financial Services Association (IFSA) and Property Council have welcomed the changes, which they said would improve Australia’s ability to take its place as a financial services centre in the Asia Pacific region.
“The Government’s reforms will progressively reduce the withholding tax rate on specified distributions from managed funds over a three year period from 30 per cent to 7.5 per cent,” according to a joint statement.
“These changes ensure that Australian fund managers can effectively compete in the world’s fastest growing region — the Asia Pacific.
“The withholding tax cuts send a powerful message to international investors that Australia is an attractive destination for investment and that the market is supported by political leaders willing to champion an agenda that will drive our global competitiveness.”
