Industry declares war on government

Industry declares war on government

Posted on Friday, May 25 2012 at 1:35 PM

The Property Council of Australia (PCA) will campaign against plans to double the withholding tax on managed trusts for foreign investors, claiming $1 billion in deals have been lost since the move was announced.

In its Budget last month, the Federal Government outlined plans to increase the rate from 7.5 per cent to 15 per cent from July 1, drawing the ire of lobby and industry groups.

Australia’s reputation on the international stage as a haven for investors has been “trashed”, the PCA says in a statement.

“This will make it harder to attract the international capital that has underpinned commercial property markets since the GFC (global financial crisis).

“Investors need simple, stable rules. More than a billion dollars of deals have already headed to the airport.”

The group will actively campaign against the tax hike, it announced.

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