Dr EMERSON (Minister for Small Business, Independent Contractors and the Service Economy, Minister Assisting the Finance Minister on Deregulation and Minister for Competition Policy and Consumer Affairs) (9:03 AM) —I move:

Schedule 1 to this bill implements the first part of the government’s decision to reform Australia’s foreign source income anti-tax-deferral (attribution) rules that was announced as part of the 2009-10 budget.

This schedule repeals the foreign investment fund, or FIF, provisions and the deemed present entitlement rules that are contained in the Income Tax Assessment Act 1936.

This measure will assist Australian managed funds and other businesses to compete internationally by reducing the complexity and compliance costs that are associated with the making of foreign investments.

The repeal of the FIF and deemed present entitlement rules further contributes to the government’s objective of promoting Australia as a financial hub in our region. This will support Australian jobs.

This measure, being part of wider reforms to better target Australia’s attribution rules, will also further simplify the taxation law and bring consolidation of the two income tax acts a significant step closer.

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

Debate (on motion by Mr Coulton) adjourned.