The Australian government has warned that foreign investors are taking the country’s business model for granted and are buying up the country at the expense of local businesses.
The foreign investor’s contribution to Australia’s economy is now at its highest level since the 1990s, and at a time when the economy is struggling to recover, the government has announced a series of measures to curb what it sees as the damage caused by the recent global financial crisis.
The new report, released by the Australian Chamber of Commerce and Industry (ACCI), shows that the Australian dollar is down more than 7 per cent against the U.S. dollar, and the Australian stock market has fallen 10 per cent in the past year.
The Australian dollar has fallen more than 20 per cent since June 2016.ACCI chief executive Richard Crampton said the data showed that foreign money was taking Australia’s businesses and industries to a “new low”.
“It’s not surprising to hear that foreign investment is slowing down in Australia and that the national currency has lost some of its value.
But the reality is that this is occurring at a more rapid pace than we would like to see,” he said.”
The government’s new measures to restrict foreign ownership and to address the current problems we are facing are all part of a broader effort to make Australia a more welcoming place to do business, as well as create new jobs.”
It is important to note that the government is not the only player in this market.
The major players are the major investment banks, asset managers, asset management companies and asset managers in Australia.”ACCI also pointed to a number of other measures being implemented across the country to tackle foreign investment.
These include:Imposing an import duty of 10 per per cent on goods imported from overseas to encourage greater use of local and regional suppliers.
Imposing a 30 per cent levy on foreign buyers of Australian assets.
Implementing a tax-free withdrawal limit on foreign home purchases.
Introducing a 10 per.cent tax on investment in Australian companies.