Review of tax arrangements in agricultural land is needed
A MAJOR review of the tax arrangements around foreign investments, particularly in Australian agricultural land, is needed, an interim report from a Senate committee examining the issue revealed on Thursday.
The Senate Rural and Regional Affairs and Transport Committee handed down its interim report, making numerous recommendations to review the tax arrangements around foreign investments.
Chaired by Liberal Senator Bill Heffernan, the committee revealed problems in the Foreign Acquisitions and Takeovers Act, which has not been substantially updated since it was created in the 1970s.
Among the problems identified were the tax treatment of foreign investment in farming land, the leakage of potential government tax revenue on such investments and the need for the complete review of the takeovers act.
The interim report was tabled in the Senate late on Wednesday, and revealed the likely final recommendations the committee will release once its full inquiry has been completed.
The committee is not due to report until February next year, after numerous extensions to the reporting deadline.