A lower tax rate in Australia is expected to offer offshore buyers the opportunity to benefit from substantial savings when acquiring and managing real estate assets in the country. According to the Financial Standard, the Federal Government's decision to phase down interest withholding tax on interest paid on some offshore borrowings will benefit potential investors.
The reduction of the withholding tax rate on both income and capital gains from 30 per cent to 7.5 per cent pushed Australia into the framework for global investment
, a position the country had not been placed in before because the 30 per cent rate was deemed too expensive, the news provider said.
"The passing of the MIT legislation has only enhanced the appeal of this market for foreign investors," Tom Southern, CB Richard Ellis president and chief executive officer Australia and New Zealand, added. "We expect a disproportionate amount of capital will be invested here relative to the size of this market and Australia's GDP."
- Monday 25 October 2010