Skip to main content

Business News Releases

Ensuring foreign investors pay their fair share of tax - Treasury

THE FEDERAL Government is continuing to protect the integrity of Australia's corporate tax system – ensuring foreign investors don't have a competitive advantage over Australian investors.

Today it released exposure draft legislation and explanatory material for public consultation on the tax treatment of stapled structures to give effect to the policy announced on 27 March 2018.

This puts into action targeted integrity rules designed to neutralise the tax benefits of stapled structures.

An increasing number of foreign investors have sought to convert trading income into more favourably taxed passive income through the use of stapled structures. When combined with existing concessions used by foreign pension funds and sovereign wealth funds, some foreign investors are currently paying tax rates of 15 percent, or in some cases, far less.

The proposed amendments in the announced package will ensure that:

  • trading income that is converted to passive income will be taxed at the corporate tax rate;
  • foreign investors will no longer be able to use multiple layers of flow-through entities (i.e. trusts and partnerships) to 'double gear' their investments to generate more favourably taxed interest income;
  • foreign pension fund withholding tax exemption for interest and dividends is limited to portfolio investments only;
  • a legislative framework is created for the existing tax exemption for foreign governments (including sovereign wealth funds), and limit the exemption to passive income from portfolio investments; and
  • investment in agricultural land will not be able to access the 15 per cent concessional MIT withholding tax rate.New, Government-approved nationally significant infrastructure assets may be eligible to access the 15 per cent concessional withholding tax rate for managed investment trusts for 15 years. This will ensure continued support for the development of nationally significant infrastructure assets that enhance the productive capacity of the economy and drive long term economic growth.

To minimise the impact of these changes on existing investments, the proposed amendments include transitional arrangements of seven years (for ordinary business staples) and 15 years (for economic infrastructure assets).

The stapled structures package is an important integrity measure, and the Turnbull Government is committed to introducing legislation as soon as possible. To maximise time for consultation, draft legislation will be released in stages, starting today.

The released exposure draft legislation contains the first four proposed amendments in the package. Draft legislation on the agricultural MIT changes and the conditions stapled entities must comply with to access the infrastructure concession and/or transitional arrangements will be released in due course.

The exposure draft legislation and explanatory materials are available on the Treasury website.

The Federal Government is encouraging all interested parties to make a submission.

ends

  • Created on .

Cyber security, startups and a contest of ideas feature at CeBIT

A CYBER Security Conference and future-focused StartUp Conference rounded out the three days of Asia Pacific’s largest business technology exhibition, CeBIT Australia which was held at ICC Sydney this week.

Angus Taylor, Federal Minister for Law Enforcement and Cyber Security opened the Cyber Security Conference, warning that organised crime has previous impacts on our society with 2 percent of Australian GDP linked to organised crime and the rates are increasing, with one in 50 economic actions related to crime, and most of them not originating from Australia.

Between 2016 and 2017 there was a 30 percent increase in global security breaches across the world, with an average of 130 breaches per company, he reported.

The solution, Minister Taylor remarked, is to focus the efforts on specific activities and work towards four major goals; to sharpen the focus on cyber infrastructure, to develop a system of national security where the government and private sector work together, to form legislation specifically for cybercrime, and to raise awareness amongst SMEs and the public on the real threats we are facing.

Budding tech entrepreneurs attended F’Up Night, on Wednesday 16 May, which featured three founders of tech businesses sharing the major mistakes they made along the way and what they learned from them.

Other highlights of CeBIT included:

  • Be.You, showcased their free BU Personal Style app that recommends your best colours, style to suit your body shape and through curated content can recommend how to tweak your wardrobe
  • TRAVLR, creators of the Bali Bible, showcased their app on the Amadeus stand, which enables travellers to use a single platform from start-to-end for all their travel directory needs
  • Design + Industry, a technology engineering consultancy on the NSW Government stand, have designed smart rechargeable wheels that can be applied across a range of industries to create effortless mobilisation
  • Rhythmotronusing XronoMorph software, exhibiting with Western Sydney University, demonstrated an interactive robotic drumming-machine, housed in a re-purposed piano
  • The launch of Everywhere Venues, which compiles business, community and sporting venues for ease of hire to the public

First time exhibitor 8x8 joined CeBIT Australia this year due to the focus on innovation. Brendan Maree, VP for Asia Pacific, said people were coming to CeBIT to see what is new to keep developing their competitive advantage.

"We've met lots of people who are looking for cloud technologies, so we have met the right type of people here for our business, and that has driven some really good opportunities for us," said Mr Maree.

PitchFest 2018, saw ten StartUps go head-to-head in a ‘shark-tank’ style competition, where a panel of four entrepreneurs judge the winning company.

Deputy Premier and Minister for Small Business John Barilaro said the quality of finalists for PitchFest was outstanding, which demonstrates how the StartUp sector is creating innovative solutions to improve all sectors of the economy.

Ping Data took out the top prize of PitchFest, winning a prize package valued at over $20,000; comprising of a fully-paid exhibition stand at CeBIT Australia 2019, three Square Contactless and Chip Readers from Vodafone, a Norton Small Business-10, which protects 10 devices for 12 months, a $10,000 USD Alibaba Cloud credit valid for one year, three months free co-working space at Tank Stream Labs in Sydney, a one-year membership to TIE Sydney, and ongoing support and mentorship. 

"Ping Data has been assisted by the NSW Government-backed Jobs for NSW to develop its technology and was one of nine NSW finalists for PitchFest, so this is a great result for our technology sector," said Mr Barilaro.

Harvey Stockbridge, managing director, Hannover Fairs – organisers of CeBIT Australia, said CeBIT Australia 2018 has been a remarkable success.

“We’ve been able to reveal a variety of powerhouse companies and StartUps, both domestically and internationally at CeBIT, and we are thrilled with the new connections and business opportunities that have already been ignited here.

“CeBIT plays a vital role in bringing together investment, talent and ideas under one roof, with a platform designed to engage.

“Many of the initial conversations taking place at CeBIT will translate into exciting new businesses, jobs and solutions that we will all benefit from,” said Mr Stockbridge.

www.cebit.com.au

ends

  • Created on .

Halogen lights set to disappear from retail shelves, says lighting industry peak body.

HALOGEN lights will disappear from Australian retail stores in the next 12-24 months as the world moves to LED lights, Australia’s peak lighting industry body announced today.

Lighting Council Australia has warmly welcomed the recent COAG Energy Council Minister’s meeting, which endorsed a new regulatory approach for next-generation LED lighting in Australia.

The lighting industry, which provides 4500 manufacturing jobs across Australia in a highly competitive global market, had been facing a significant increase in compliance costs arising from a Commonwealth Department of Environment proposal to be made under federal law.

“The earlier proposal would have been a disaster," Lighting Council Australia CEO Richard Mulcahy said.

“An additional $80 million worth of red tape would have raised consumer prices and have seen job losses in one of Australia’s few remaining viable manufacturing industries.”

The dispute was the subject of an intervention by Minister Frydenberg after significant industry representations.

“Minister Frydenberg saw that there was a problem with the proposal and instructed his Department to rework the policy on the basis of real industry consultation.  The end proposal, which was endorsed by COAG recently, was a very reasonable compromise that will align Australian regulations with those applied overseas.

“Minister Frydenberg should be applauded for his leadership. We are also extremely grateful for the support provided by Prime Minister Turnbull on this issue.

“Additionally, Minister Frydenberg has taken a significant step in reducing Australians’ home electricity bills”, explained Mr Mulcahy in reference to the agreed ban on halogen lights which is expected to save Australian consumers $1 billion over the next decade.

“Halogen lamps use between three and five times as much electricity as new generation LED technology.  As an industry committed to strong environmental outcomes, we’re pleased to play a major role in taking pressure off household and business budgets.”

The Minister will be opening Lighting Council Australia’s office at Suite 5, 191 Riversdale Rd, Hawthorn at 10:30am this morning.

ends

  • Created on .

Resources industry pledges support for domestic violence prevention

QUEENSLAND’s resources industry has reaffirmed its support for efforts to prevent family and domestic violence with the launch of the Palaszczuk Government’s #bystander campaign.

Minister for Prevention of Domestic and Family Violence Di Farmer said workplaces were on the front line of the fight against domestic violence and she was thrilled with the work being done across the resources industry to make a difference.

“Having major industry bodies like the Queensland Resources Council backing our domestic violence bystander campaign is important, and it shows great leadership," Ms Farmer said.

“We have long said fighting domestic violence is everybody’s business.

“Support from the Queensland Resources Council and from major employers like Rio Tinto is an important part of ending this scourge on our community for good.”

Queensland Resources Council chief executive Ian Macfarlane said the industry welcomed the continued implementation of the recommendations of Dame Quentin Bryce’s Not Now, Not Ever report and the launch of the bystander campaign.

“As the representative body for an industry that supports one in eight Queensland jobs, the QRC has been active with its members to ensure we 'do something' ourselves. I have directed that our 2016 family and domestic violence toolkit for our Members be updated to reflect the new campaign,” Mr Macfarlane said.

“QRC is prepared to be engaged with the Government on any future initiatives to prevent family and domestic violence.

“I am proud that our industry is not only working to prevent family and domestic violence within Queensland, but around the country and the world.

Last month, at the prestigious Resources Awards for Women, conducted by the Queensland Resources Council (QRC) and voluntary group Women in Mining and Resources Queensland (WIMARQ), Rachel Durdin of Rio Tinto was named Gender Diversity Champion.

Based in Brisbane, Rachel has led Rio Tinto’s response to family and domestic violence including Rio Tinto’s decision to pursue White Ribbon Workplace accreditation and contributed to the development of Rio Tinto Australia’s guidance note addressing protections for individuals at risk of or experiencing family and domestic violence, which includes new leave arrangements, flexible working arrangements, family rooms, should employees need to attend work with children, emergency accommodation and financial assistance.

Mr Macfarlane said upon receiving the Award, Ms Durdin made the powerful statement that “We want an industry free of fatalities and we want a community free of violence”.

www.qrc.org.au

ends

  • Created on .

Best and most innovative technologies on the showfloor of CeBIT Australia 2018

THIS week, CeBIT Australia will showcase the latest innovative global technology changing the way we do business. Explore the future of driverless transport, the latest in rugged mobile technologies able to endure even the harshest of elements, an ultra-modern escape room experience, and more all on the exhibition showfloor, from 15-17 May at ICC Sydney.

The incredibly human-like FaceMe chatbots are designed to respond to customer service needs with empathy and personalisation. They look like humans and are equipped with the ability to change their facial expressions in line with the context of the conversation. Showcasing the 'next wave of digital employees', the highly-interactive chatbots are powered through a sophisticated AI platform, soon to be rolled-out across service-based establishments such as banks.

From ultra-smart robots to smart buildings, Advantech Australia will demonstrate the latest in intelligent smart buildings designed to enhance sustainability and efficiency. In a special CeBIT Australia first, Norton by Symantec will launch its first ever hardware product, the Norton Core Router. Designed to protect all the home's smart devices from cyber threats, the router is ambitious in both design and function and begs to be showcased rather than hidden behind the home TV. Demonstrations of this new product will be held on their stand. The story of Norton Core will be told through an Australian first visual hologram prototype on a 1.4m x 1m display.

Harvey Stockbridge, managing director, Hannover Fairs Australia, said driverless vehicles are always a popular attraction, this year will be no different.

"There's no disputing the rise of driverless vehicles. In fact, some claim that by 2030, most vehicles on Australian roads will be automated. Accordingly, driverless transport will make its mark again on the showfloor of CeBIT Australia. We also have a range of exhibitors bringing with them the latest technology in their industry, from holographic displays, to coding classes and digital employees, there are many avenues looking at the future of business technology," said Mr Stockbridge.

EasyMile and the Australia and New Zealand Driverless Vehicle Initiative (ADVI) presents the ultimate in-house fleet management solution for transporting up to 15 passengers and travelling up to 45km/h, the EZ10 driverless shuttle challenges the ideas of driverless automation.

A first on the showfloor, Maxo Telecommunications, will give attendees the chance to compete in an interactive escape room experience 'Escape Your Telco'. The highly anticipated Atlassian Code Lab sees classes run each day, where visitors can learn the basics of coding.

"The showfloor of CeBIT Australia is always buzzing with activity and an air of excitement, that's because it really is thrilling to get a taste of what's to come. Some of the innovations on display this year are truly revolutionary.

"It's humbling that so many great innovators of the industry choose CeBIT Australia to show-off their amazing advancements. It's an honour to be able to provide CeBIT Australia as a platform for this purpose," Stockbridge added.

CeBIT Australia 2018 is happening at ICC Sydney next week, with leading international keynotes, conference streams, and two stages on the showfloor, the Innovation stage and the FutureTech stage, covering everything from IoT to machine learning and AI.  

For more information – including an overview of the CeBIT Australia 2018 presentations, speakers and events – visit cebit.com.au 

ends

  • Created on .