Govt runs out of time on foreign investment rule
The Federal Government has acknowledged it is running out of time to introduce its Foreign Accumulation Fund (FAF) integrity rule before the end of the current financial year.
The Assistant Treasurer and Minister for Financial Services, Bill Shorten (pictured), has conceded the FAF integrity rule will not apply for the 2010-11 income year, despite the Government having repealed the foreign investment fund regime and the deemed present entitlement rules last year.
“The FAF rule is still under development and 30 June is fast approaching,” he said. “The Government has received no evidence that deferral activity has emerged following the repeal of the FIF regime.”
Shorten said on the basis that there appeared to be no deferral activity, the Government was happy to provide certainty for industry and investors by confirming the FAF rule would not apply for 2010-11 but would have application for the income years on or after it received Royal Assent.
The FAF rule is intended to form part of a wider package of reforms to the foreign source income distribution rules aimed at making Australia more attractive to foreign investors.
AUTHOR
Mike Taylor
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