Keep Australia an attractive investment destination
The Institute of Chartered Accountants Australia has called on the federal government to assess any new tax policy reforms from a ‘foreign investment risk’ perspective before reaching final policy and legislative decisions.
In its pre-Budget submission
lodged earlier in this month, the Institute says that a number of recent tax reforms may have led to negative perceptions of Australia as a safe and stable place to direct foreign capital. These reforms include changes to the capital gains tax, withholding tax rates and the Living Away from Home Allowance.
, head of tax policy, says "It’s important Australia retains its position in the global tax space as an attractive destination for foreign investors, regardless of the political climate.
"As part of the process of preparing tax policy changes that impact internationally, we think government should perform an analysis that attempts to quantify the impact of the measures on Australia’s international tax attractiveness," adds Mr Stacey.
The Institute stresses the important opportunity that exists for this year’s federal Budget to build a new wave of nation-building economic reform through well-targeted policies that are geared towards supporting a stronger and more prosperous Australia in the future.
"Given that taxation laws are the means by which government secures the majority of its revenue to fund the delivery of expenditure commitments in all portfolio areas, ensuring that the tax system is operating at the maximum efficiency should be a key priority for the government," according to the submission.
Other measures covered in the submission include: investing more in the development of skills and an improved education system, examining ways to eliminate barriers to women returning to the workforce after starting a family, reducing regulation and red-tape for businesses, and minimising the extent of ongoing change in our superannuation and taxation systems.
Institute of Chartered Accountants Australia
Phone: 02 9290 5569
Article last Updated 20 December 2013