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The 2021‑22 Budget will position Australia to capitalise on its economic success and provide a platform to attract global capital and talent.
The Government will introduce a Global Talent Attraction package of targeted taxation measures, regulatory relief and economic reform to encourage and facilitate high‑yield international businesses and exceptional talent to relocate to Australia.
The Government is investing more than $550m to achieve this with a suite of measures including:
Encouraging the increased take up of employee share schemes by reducing regulatory requirements and modernising the tax treatment of these schemes
Providing greater certainty to foreign investors by providing them with an ATO early engagement service that will fast track advice to foreign direct investors about the tax implications of their proposed transactions or relocation to Australia
Finalising the implementation of the Corporate Collective Investment Vehicle (CCIV) regime to encourage foreign investment and enhance the competitiveness of Australia’s funds management sector
Consulting on options to restore previously well‑established relief limited to dealing with wholesale clients or professional investors for Foreign Financial Service Providers (FFSPs) who are licensed and regulated in jurisdictions with comparable financial services regimes and options to create a fast‑track licensing process for FFSPs who wish to establish more permanent operations in Australia
Clarifying and simplifying the tax residency rules for globally mobile individuals
Making technical amendments to the Taxation of Financial Arrangements (TOFA) legislation which will include facilitating access to hedging rules on a portfolio hedging basis
Undertaking a review of venture capital tax concessions to ensure they are fit‑for‑purpose
The Government will also use the Global Talent Attraction package to consult on further improving the corporate residency rules including providing certainty to foreign residents on the Investor Manager Regime (IMR). The IMR was established in 2015 to attract foreign investment to Australia and promote the use of Australian fund managers by removing tax impediments to investing in Australia. These measures complement the Government’s Global Talent Visa Program for a streamlined visa pathway for highly skilled professionals to work and live permanently in Australia.
In 2020, the Prime Minister established a new whole‑of‑government Global Business and Talent Attraction Taskforce led by Peter Verwer AO to attract international businesses and exceptional talent to Australia.
The Morrison Government prioritised global business and talent attraction in 2020 as part of its COVID‑19 economic recovery plan, with a view to capitalising on Australia’s strategic advantages and successful management of the pandemic.
By: Mirage News