Foreign investment rules need transparency
Australia must have transparent rules that govern foreign investors who invest in property in Australia, and financial advisers have a role in overseeing the legality and structure of the property deals.
Such is the view of Connect Financial Services Brokers chief executive, Paul Tynan, who warned new and current foreign government investors who have interest in agricultural land must register the interest with the Australian Taxation Office (ATO).
Tynan said that while Australia needs foreign investment, particularly over the next 20 years as the Baby Boomer cohort retires and the need for capital increases, it needs transparent rules that guarantee compliance of foreign investment laws.
Generation X and Y's desire for more business debt and equity investment remained low since they were already burdened with debts like the mortgage and education claimed Tynan.
"Australia needs access to foreign investments to produce the services and goods that will be demanded by the global economy," Tynan said.
"Our rules on foreign ownership are comprehensive. What we need is the adherence and enforcement of these rules."
Overseas investors have to comply with guidelines set out by the Foreign Investment Review Board (FIRB) and the ATO.
The FIRB assesses proposals by foreign investors interested in investing Australia and makes recommendations to the Federal Treasurer.
AUTHOR
Malavika Santhebennur
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