The federal government announced in the 2016-17 federal budget that it would create two internationally recognised CIVs in order to make Australian funds management competitive overseas.
Financial services minister Kelly O’Dwyer said that feedback from the financial services industry persuaded the government that the current withholding tax regime would inhibit the sector’s international competitiveness.
“The government encourages stakeholders to share their views on the impact of Australia’s non-resident withholding tax regime on Australia’s competitive position in the global financial sector,” Ms O’Dwyer said.
“Stakeholder feedback will inform the government’s consideration of any potential measures in this context.”
Written submission on the consultation paper are due by Friday, 2 December.
Financial Services Council chief executive Sally Loane welcomed the release of the consultation paper, urging the government to “keep going until the job is done”.
“Australia’s complex and uncompetitive withholding tax regime was identified as a barrier to exporting our financial services expertise overseas by Mark Johnson AO seven years ago,” Ms Loane said.
“Along with the government’s commitment to introduce new internationally recognised collective investment vehicles and the incoming Asia Region Funds Passport, reform of our complex withholding tax regime is part of a package of measures which will send a clear message to the global market place that Australia is open for business.
“Collectively, these measures have the power to provide significant economic benefits to Australia and will drive growth in exports of our funds management products and expertise.”
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