The Government today achieved passage of a key tranche of international tax reforms designed to assist business and keep Australia competitive, the Minister for Revenue and Assistant Treasurer Senator Helen Coonan said today.
It follows the enactment of the new tax treaty with the UK and reform of the international tax rules affecting superannuation funds and the funds management industry which were passed by the Senate this week and now await Royal Assent.
“These long awaited reforms have been hailed by business as the most important international tax changes in more than a decade,” Senator Coonan said.
“Their passage is all the more important when you consider Labor’s longstanding opposition to these measures.
“While the Bills eventually received support from the Opposition, they were long on Labor’s ‘cost saving’ hit list.
“Unlike Labor, the Government believes in prioritising the needs of Australian businesses and creating an environment in which business can prosper.
“The last tranche of the reforms will improve the competitiveness of Australian companies with offshore operations by allowing more flexibility in dealings amongst offshore associates.
“Importantly, these measures are not just relevant to big business but will also assist emerging Australian businesses looking to expand offshore to take advantage of global opportunities.
“Tax reform that benefits business by making it more competitive represents an investment by Government in securing a successful economy.
“Australian companies have a large amount –more than $160 billion - invested in foreign businesses.
“These tax reforms will mean business is no longer fighting with one hand tied behind its back when it takes on the challenges of competing in the global economy. Removing unnecessary Australian tax considerations from the operations of Australian businesses abroad can only benefit Australian companies, their Australian shareholders and employees.”