Mr BOWEN (Minister for Competition Policy and Consumer Affairs, and Assistant Treasurer) (11:11 AM) —I move:

This bill sets out the transitional rate of tax that applies to residents of countries with which Australia has effective exchange of information on tax matters for the first income year of the new withholding tax regime. Such foreign investors will be subject to tax at 22.5 per cent on their distributions from Australian managed funds but will be eligible to claim deductions for expenses associated with their investment.

This is an important step in assisting investors to transition from the current non-final withholding tax regime to the new final withholding tax regime.

Full details of this bill are contained in the explanatory memorandum already presented.

I commend the bill to the House.

Debate (on motion by Mr Pyne) adjourned.