The final part of the IMR aims to provide “additional clarity for foreign funds making passive investments into certain Australian assets”, according to a statement from Treasurer Chris Bowen.
Under the proposed legislation, gains of foreign funds from the disposal of portfolio interests in Australian assets will be largely exempt from Australian tax.
Speaking at the Financial Services Council annual conference in Brisbane yesterday, Mr Bowen said the legislation was one of a number of policy items aimed at turning Australia into a financial services hub in line with the objectives of the Johnson Report.
“Progress has also been made on a number of other key Johnson Report recommendations. Elements 1 and 2 of the Investment Manager Regime (IMR) are now law,” the treasurer said.
“Today, I released the third and final tranche of IMR legislation for consultation. When complete, this will amount to a major streamlining and improvement to regulation of this field.”
According to the explanatory memorandum, the third tranche of the legislation seeks to amend the Income Tax Assessment Act 1997 to expand the existing exemption for qualifying investment income of certain foreign widely-held managed funds if they meet a number of criteria, such as compliance with reporting obligations.
Submissions will be received electronically or via post and close on Friday 13 September.
