Sally Loane
The Government’s revised Investment Manager Regime draft legislation released today is a significant step in completing the Johnson reform recommendations and in bolstering financial services trade, according to the Financial Services Council.
Sally Loane, CEO of the FSC said: “The revised IMR legislation will provide foreign investors with clarity and certainty on the tax treatment of their investments.”
“It removes the tax impediments which have deterred foreign entities from using Australian fund managers and paves the way for Australia to capitalise on its comparative advantage in funds management.”
“There is much to win,” Ms Loane said. “Less than five per cent of Australia’s $2.4 trillion in funds under management are currently sourced from overseas.
“While this has been growing and delivering significant benefits to the economy, there is the potential for an exponential increase in foreign sourced funds with the right policy settings. It is essential that the outstanding recommendations in the Johnson Report are implemented so Australian fund managers can develop new products which attract new money from offshore investors and are competitive across borders,” Ms Loane said.
The Asia Region Funds Passport − which will provide a regulatory framework for mutual recognition of fund operators and investment funds between participating countries – stands to benefit from these reforms.
It will be piloted from January 2016 and will make it easier for two way flow of funds between Fund Passport nations.