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Taxation conditions – clarifying requirements for foreign investment

Tonight’s Federal Budget makes important protections to the integrity of Australia’s tax base, designed to ensure that all individuals and businesses pay the right amount of tax.

The application of tax conditions to foreign investors, where it is decided that a particular foreign investment application presents a risk to Australia’s revenue, is an important part of the tax integrity agenda.

Following the Treasurer’s 22 February announcement that standard tax conditions would be applied to foreign investment approvals, there have been consultations between Treasury, the Australian Taxation Office and industry to discuss the practical application of these conditions.

Following these consultations the Treasurer is releasing tonight a revised set of conditions that effectively target those foreign investments that pose a risk to Australia’s revenue and to make clear the requirements and expectations for investors.

The Government continues to welcome foreign investment that is not contrary to Australia’s national interest. The revised conditions will provide greater certainty to the investment community thus ensuring that necessary investment can proceed in accordance with Australia’s tax laws.

The revised conditions are available [PDF 538KB | RTF 2MB ].

A guidance note will be released shortly to provide additional information on the conditions.