Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Hansard source

I move:

That this bill be now read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

Schedule 1 to this Bill implements the first part of the Government’s decision to reform Australia’s foreign source income anti-tax-deferral (attribution) rules that was announced as part of the 2009-10 Budget.

This Schedule repeals the foreign investment fund, or FIF, provisions and the deemed present entitlement rules that are contained in the Income Tax Assessment Act 1936.

This measure will assist Australian managed funds and other businesses to compete internationally by reducing the complexity and compliance costs that are associated with the making of foreign investments.

The repeal of the FIF and deemed present entitlement rules further contributes to the Government’s objective of promoting Australia as a financial hub in our region. This will support Australian jobs.

This measure, being part of wider reforms to better target Australia’s attribution rules, will also further simplify the taxation law and bring consolidation of the two income tax Acts a significant step closer.

Full details of the measures in this Bill are contained in the explanatory memorandum.