Good news for investors and the Australian economy!

The 2009/10 Australian Federal Budget has some interesting ramifications for real estate investors. I read with real interest some of its provisions, which are clearly aimed at promoting Australia as a financial services hub for the Asia-Pacific region.

The items that most interested me include a new capital gains tax trust roll-over for assets transferred between fixed trusts with the same beneficiaries, new measures to allow eligible Australian Managed Investment Trusts to make an election to apply the Capital Gains Tax regime to the disposal of qualifying assets, and changes to Australia’s  foreign accruals taxation provisions.

I am pleased that Australia’s foreign investment fund provisions are to be repealed. This should result in reduced costs and less complicated compliance requirements as far as investments in non-controlled off-shore property entities are concerned.  Another thing great to see is that the government is modernising its definition of passive income.

I believe these measures combined will be good news for investors and should go a long way to helping further stimulate the Australian economy.