The Federal Government has added the Newcastle Stock Exchange (NSX) to the list of approved stock exchanges for the purposes of the Foreign Investment Fund (FIF) regime, the Minister for Revenue and Assistant Treasurer, Senator Helen Coonan said today.
"The addition of the NSX extends the already extensive list of approved exchanges available to investors for FIF purposes and will assist the NSX to compete equally with other listed exchanges in attracting foreign company listings," Senator Coonan said.
The list of approved stock exchanges in Schedule 12 of the Income Tax Regulations 1936 provides benefits to Australian investors subject to the FIF regime.
For investments taxed under the FIF regime, it enables Australian investors in foreign companies listed on the NSX to use the market value method for determining the value of FIF attributable income.
It will also allow investors claiming the active business exemption under the FIF rules, an easy method of demonstrating their investment's active nature, by using the NSX's sectoral classifications of the investment's activities.
The change, effective from 1 July 2002, will benefit taxpayers by reducing their compliance costs.