Australia Warned Over Retrospective Tax on Foreign Asset Sales

An Australian government plan to impose a retrospective tax on some foreign-owned asset sales would deter overseas investment and damage the nation’s reputation, opposition conservatives warned Thursday.

The Treasury legislation, open for consultation until April 24, calls for retrospectively applying a capital gains tax on the sale of assets acquired by foreign residents since 2006, when the current law was introduced.

Changing the rules now, after investments were made, “would undermine confidence in Australia’s economy and put at risk industries that rely on trade and investment,” the opposition coalition’s shadow treasurer Tim Wilson said in a statement. ...