Federal budget 2012: Doubling of tax on foreign investment in property trusts slammed by PCA
The Property Council of Australia has lashed out at the federal budget decision to increase tax on foreign investment in property trusts as “another extraordinary misstep”.
“This desperate and cack-handed doubling of the tax sends an appalling signal to international investors,” PCA chief executive Peter Verwer told Fairfax Media.
Verwer said the government had not consulted industry on the measure.
“Treasury only know enough about international funds management to be dangerous," he said.
"Once again the government will suffer because its taken poor advice and not consulted with industry,” Verwer said.
The government will increase the managed investment trust final withholding tax rate from 7.5% to 15%, with effect from July 1, 2012. The measure will return the withholding tax for managed investment trusts to the level of the original 2007 election commitment.
The measure is estimated to have a gain to revenue of $260 million over the four-year forward estimates period.
