Last hurrah for Hockey
IN one of Joe Hockey’s last acts as treasurer, he made good on a promise to begin tax negotiations with Israel that will boost trade between the two countries.
IN one of Joe Hockey’s last acts as treasurer, he made good on a promise to begin tax negotiations with Israel that will boost trade between the two countries.
Currently firms in Australia and Israel who do business pay tax in both jurisdictions. A Double Tax Treaty (DTT) will ensure companies are not double taxed, opening up further opportunities and removing the competitive disadvantage faced by local businesses.
“A tax treaty with Israel would provide greater tax certainty for businesses and enhance the integrity of both countries’ tax systems,” Hockey said last Friday.
“The level of foreign investment from Israel in Australia has tripled over the last three years. There is great potential to build on this.”
He said Australian companies would be able to take greater advantage of Israel’s knowledge-based economy – particularly in the areas of biotechnology, ICT, education and training, adding that “a Double Taxation Agreement would also encourage Israeli companies to view Australia as a regional base and as a supplier of sophisticated goods and services.”
Welcoming the announcement, Australia-Israel Chamber of Commerce (AICC) national chairman Leon Kempler said, “The AICC believes that the implementation of a DTT with Israel provides Australia with a unique opportunity to significantly increase trade and investment between our two countries.”
Australia’s ambassador to Israel, Dave Sharma, concurred: “A tax treaty will serve to strengthen our economic and financial links across a range of sectors, including high-tech, agri-tech, financial services, energy, oil and gas, and health and pharmaceuticals.”
Australia/Israel & Jewish Affairs Council national chairman Mark Leibler said local businesses will benefit from greater access to Israel’s resilient and technologically advanced economy, “while Australia will greatly benefit from further Israeli input into our increasingly knowledge-based economy”.
Executive Council of Australian Jewry president Robert Goot said: “We expect that this agreement, once implemented, will ensure that Australian businesses are able to fully exploit access to new Israeli technologies and know-how, and encourage the creation of new industries and new jobs in Australia.”
GARETH NARUNSKY
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