‘Revenge Tax’ Shift Revives US Appeal for Australia Mega Funds

Australia’s A$4.1 trillion ($2.7 trillion) pension industry signaled relief over US plans to scrap the so-called “revenge tax,” which would have increased levies on income from assets of foreign investors.

The proposal to lift taxes on US income of non-US businesses could have had a far-reaching impact on Australian pension funds, which have about $450 billion invested in the world’s largest economy across infrastructure, equities, bonds, and other assets, according to industry data.

“To see it actually not go through, or be significantly watered down, certainly makes it easier for us to invest in long-term US assets,” said Daniel Farmer, ...