The Government is committed to implementing a practical Investment Manager Regime with the release of updated exposure draft legislation in early 2015.
Earlier this year, we consulted with stakeholders on exposure draft legislation to implement the final tranche of the Investment Manager Regime.
The purpose of Element 3 of the Investment Manager Regime is to provide tax certainty to foreign investors investing in Australia.
To ensure that our Investment Manager Regime is internationally competitive and meets its objectives, key stakeholders have supported an approach that broadly reflects the United Kingdom’s equivalent Investment Manager Exemption.
This change will provide greater tax certainty to foreign investors and ensure that Australian fund managers can actively market their financial services globally, promoting Australia as a regional financial services centre.
The Government acknowledges concerns raised by industry. This change will better meet the objectives of the Investment Manager Regime as recommended by the 2009 Johnson Report.
The Investment Manager Regime will also allow greater access to key financial markets across the Asia Region.
We will continue to consult extensively with industry and tax professionals in finalising the legislation.