John Howard Presses Labor Over Tax Changes For Foreign Executives

by Mary Swire, Tax-News.com, Hong Kong

15 July 2002

The Australian Financial Review reported on Friday that Prime Minister, John Howard used a business meeting in Brussels last week to increase the pressure on the Labor Party with regard to tax changes for foreign executives.

Responding to a query from Nestle senior executive, Herbert Oberhansli on the difficulties of obtaining work permits for the multinational company's new shared Asia-Pacific service centre, Mr Howard revealed that the government is endeavouring to change the tax and employment treatment of foreign executives, but alleged that all such moves have been blocked by the Opposition ALP in the Senate.

'If you want unrestricted, desirable flows of foreign investment into Australia, part and parcel of that is to have conditions where highly paid foreign executives who come with the foreign investment have the incentive to do so, and are not chased back prematurely because of restrictive capital gains tax laws, for example,' the AFR quoted the Prime Minister as observing.

Currently, non-residents living and working in Australia for more than six months are likely to be taxed on any income derived from offshore, as well as income earned in Australia during their visit.

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