The Minister for Revenue and Financial Services, the Hon Kelly O'Dwyer MP, today released a collective investment vehicle (CIV) non-resident withholding taxes paper for public consultation.
This follows Minister O'Dwyer's announcement of 4 May 2016 that the Government will consider non-resident withholding taxes on CIVs in this financial year to ensure that the Australian funds management sector is internationally competitive.
The Government is committed to promoting Australia as a regional financial centre and has put in place a range of measures to ensure that the Australian funds management sector is competitive in the global market.
In the 2016-17 Budget, the Government announced that it will introduce two new internationally recognised collective investment vehicles which will make Australian managed funds more attractive to foreign investors and enhance opportunities for the export of funds management services from Australia.
The new vehicles will also support participation in the Asia Region Funds Passport (ARFP) which is an international trade arrangement which will enable Australian fund managers to more easily export their services to foreign clients.
Industry has indicated concern that the current withholding tax regime will inhibit the sector's international competitiveness and reduce the effectiveness of these measures.
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. Stakeholder feedback will inform the Government's consideration of any potential measures in this context.
The consultation paper is available on the Treasury website. Written submissions are due by Friday 2 December 2016.