This press release represents the Governments final response to the Industry Commission Report on the Implications for Australia of Firms Locating Offshore.
The Government notes that the Commissions report did not recommend any changes to the Governments broad policy framework. The Commissions main finding is that market demand-oriented influences are typically the most important determinants of Australias direct investment abroad in sectors other than mining.
Accordingly, the Government is addressing impediments to Australian industrys offshore investment activities through a range of multilateral, regional and bilateral trade and investment initiatives.
The Government is also taking action to improve the opportunities for investment within Australia by improving Australias competitive position and the environment for business. Invest Australia has been established to provide a wide range of services to international companies seeking to invest in Australia.
On 13 August 1998, the Prime Minister announced details of the Governments tax reform package (Tax Reform: not a new tax, a new tax system). A Business Tax Review, under the chairmanship of John Ralph AO, has also been established to facilitate consultation on the design of reformed business tax arrangements. Taxation issues relevant to the Commissions report will be considered as part of the review.
The Government acknowledges the Commissions findings that the recognition of native title by the High Court, the subsequent Native Title Act 1993 and the Wik decision have led to some increase in the uncertainty about land access. The Native Title Act 1998 has addressed the concerns raised by the Commission.
28 January 1999
Contact:
Penny Farnsworth
Assistant Treasurers Office:
(02) 6277 7360