(19 January 2010 – Australia) A report commissioned by the government has been completed and is designed to increase activity in Australia’s financial sector by simplifying tax laws for overseas investors.The report, produced by the Australian Financial Centre Forum (AFCF), includes recommendations to remove state insurance taxes and withholding taxes on offshore borrowing.
The forum also recommends reducing the impediments to Islamic finance in Australia.
The report indicated that Australia is located in the fastest growing region of the world economy, and that wealthy individuals in the Asia-Pacific region hold about 23 per cent of all wealth held by rich individuals.
To capitalise on this, the government wants to expand the import and export of Australia’s financial services.
Mark Johnson, the report’s author said that confusion over foreign tax regulations are holding the country back.
Australia is richly endowed in the financial sector so you would expect it to be more international, Mr Johnson added.
Mr Johnson also said that tax uncertainty, or the uncertainty of a number of the rules, is in the AFCF’s opinion one of the big issues that has held back the internationalisation of the industry.