Saturday 23rd of October 2021

Treasurer bends for Multinationals' Employees

 The Australian push for imported corporated labour is picking up speed.

Released on the Treasurer's website yesterday

The Treasurer today announced improvements to the taxation arrangements for
temporary residents which will give Australia one of the most competitive expatriate
taxation regimes in the world.

A foreign source income tax exemption for temporary residents was introduced
into Parliament twice in 2002, but failed to pass the Senate because of Labor
Party opposition. The Government announced it would re-introduce the measure
in the 2005-06 Budget.

The Taxation Laws Amendment (2006 Measure No. 1) Bill 2006 (the Bill)
introduced today implements that announcement but goes further than the previously
blocked legislation which was to apply a tax exemption to a temporary resident
for a period of 4 years, only if the temporary resident had not been an Australian
resident within the previous 10 years.

The Government will now remove these time limits as they provide unnecessary
disincentives and distortions for individuals wishing to remain working in Australia.
The measure will now apply to holders of a temporary visa (excepting those who
are directly or indirectly treated as residents for social security purposes).

Holders of a temporary visa will not be taxed on foreign source income. They
will continue to be taxed on all Australian source income and salary and wages
generally, including income from employee shares or rights.

Further, capital gains taxation of temporary residents will be aligned with
non-residents. The combination of these changes will also ensure that the capital
gains tax rules for departing residents do not apply to temporary residents.

The changes will significantly reduce administrative and compliance costs.
It will also further reduce the cost to Australian businesses of employing expatriates.

The Government is committed to assisting businesses to access the skilled labour
needed to compete internationally. These significant improvements have been
welcomed in consultation with business and taxpayer representatives.

blind Freddy knew that

From the ABC

Sales reps, engineers, trades in short supply: survey
There is further evidence of the skills shortage being faced by Australian businesses.
A global survey by the US-based recruitment firm Manpower has included more than 3,000 firms in Australia.
Some 32 per cent of Australian employers and 40 per cent of employers worldwide say they are finding it difficult to fill positions due to a lack of suitable talent.
In Australia, the greatest shortage identified by the survey is of sales representatives, followed by engineers and skilled tradesmen.
Manpower says that globally the trend is not cyclical but a ....etc
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Gus rave:
With many "young professional" being coaxed to a job into finances and money market where bullshit is more important than solid mechanical knowledge, with rewards for fiddling with money more rewarded than constructing proper things, it's not rocket science to know that engineers and skilled tradesmen are in short supply... and there is not as much money as a sales representative than as a money trader...

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Gus actually wrote about that looming problem in the early days of this web site... Er,, I'm to lazy to find where... but it's there...