Attracting International Capital

For the first time the impact of land tax surcharges on foreign investment in Australia’s property sector has been quantified in a new report, Attracting International Capital – How Foreign Investor Taxes Impact Global Investors, commissioned by the Property Council of Australia and prepared by Mandala.

Peter Menegazzo (CEO, Investa) joined Carmel Hourigan (Office CEO and Institutional Client Services, Charter Hall and National President of the Property Council of Australia) and Craig Milner (Partner, Allens) in a discussion led by Torie Brown (Executive Director, Property Council Capital Markets Division) discussing the impact of higher taxes on investment, particularly foreign investor taxes.

The report highlights that Victoria experienced a 53% reduction in global institutional investment when land tax doubled.

The panel agreed that ‘capital goes where it’s welcome’ and that the layering of taxes undermines confidence and liquidity – two key considerations for foreign investors.

State governments that adopt investment settings which welcome capital will be best positioned to benefit from strong capital flows that support Australia’s ongoing growth and help build a prosperous nation.

The report is available from the Property Council of Australia website: https://www.propertycouncil.com.au/submissions/attracting-international-capital-how-foreign-investor-taxes-impact-global-investors