In a media release issued on 18 December 2009, the Assistant Treasurer, Senator Nick Sherry, announced the release for public consultation of exposure draft legislation (Tax Laws Amendment (Foreign Source Income Deferral) Bill (No 1) 2010) that will repeal the Foreign Investment Fund (FIF) rules and Deemed Present Entitlement (DPE) rules. The repeal of the FIF and DPE rules represents part of the wider reforms to Australia's foreign source income anti-tax-deferral rules that were announced in the 2009-10 Budget.
"The repeal of these rules will reduce costs, cut red tape and improve the competitiveness of Australian businesses. Replacing these rules will also further enhance Australia's position as a financial centre in our region," the Assistant Treasurer said.
Draft legislation to give effect to the remaining reforms to modernise the controlled foreign company and the transferor trust rules are currently being developed.
Consultation closes on Friday 5 February 2010.
For a copy of the Minister's media release, No 2009/117, 18 December 2009, go here
For a copy of the draft legislation and explanatory material, go here