According to the Australian Financial Review, the Australian Prime Minister, John Howard, has managed to bring talks with the United States regarding double taxation of Australian companies based there to a resolution.
Announcements regarding this new development, which will slash US withholding tax on dividends from 15% to 5%, were expected earlier this week, but were delayed in light of the tragic events in New York, Washington DC, and Pennsylvania. However, it is believed that Mr Howard will make an announcement regarding the deal shortly.
Under the terms of the previous treaty, put in place in 1982, profits from Australian investment in the US (which is presently estimated to total around $92 billion), were subject to an effective tax rate of nearly 50%, a fact which caused construction company James Hardie to relocate to a more favourable location earlier this year, and threatened to cause an exodus among Australian businesses.
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