Australia plans tax treaty with Israel

 Email this story

Print

5 Comments

The Australian Government has announced its intention to enter into tax treaty negotiations with Israel.

Joe Hockey

Treasurer Joe Hockey has announced: “As part of the Government’s ongoing efforts to strengthen and deepen our relationship with Israel, we are announcing our intention to commence negotiations on a new Double Taxation Agreement between our two countries.

Australia has a warm and close relationship with Israel, supported strongly by Australia’s active Jewish community, but we do not currently have a Double Taxation Agreement with Israel. This is holding back closer economic and financial links between our countries.

A tax treaty with Israel would reduce the incidence of double taxation, provide greater tax certainty for businesses and enhance the integrity of both countries’ tax systems.

The level of foreign investment from Israel in Australia has tripled over the last three years. There is great potential to build on this.

Israel is a highly developed and advanced economy with particular strengths in technology.

There are opportunities for Australian companies to take greater advantage of Israel’s knowledge-based economy – particularly in areas of biotechnology, ICT, education and training. 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.”

AIJAC’s executive director Dr Colin Rubenstein told J-Wire: “The Australia/Israel & Jewish Affairs Council (AIJAC) applauds Federal Treasurer, The Hon Joe Hockey MP, on his announcement of the Government’s intention to commence negotiations on a new Double Taxation Agreement between Australia and Israel.

AIJAC’s National Chairman, Mark Leibler, spoke to Mr Hockey this morning to congratulate him on this move and to warmly welcome this important step. “This exciting announcement by the Treasurer will further strengthen the  growing economic and financial links between Australia and Israel. Significantly, Australian companies 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,” Mr Leibler said.

Dr Colin Rubenstein added: “Australia and Israel are the most natural of economic partners, but there remains much potential to further capitalise on each other’s strengths for their mutual benefit, which this agreement will facilitate. We commend the Treasurer for this well-conceived initiative which exemplifies the Coalition Government’s commitment to enhancing Australia’s economic ties with Israel.”

President of The Executive Council of Australian Jewry Robert Goot said: “We warmly welcome the Treasurer’s announcement that negotiations will soon commence between Australia and Israel towards an agreement to reduce the incidence of double taxation and provide greater certainty for businesses.

Trade and commerce between countries helps to deepen the bond between their people and the harmonisation of taxation arrangements is an important step towards even greater economic cooperation between Australians and Israelis.

Israeli technology and innovation across a range of vital industries, including healthcare and renewable energy, already contribute immensely to our quality of life in Australia. 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.”

Dr Danny Lamm, president of the Zionist Federation of Australia, told J-Wire: ““The ZFA welcomes  closer ties between Australia and Israel as proposed by the Treasurer Joe Hockey.
As trade, tourism, scientific exchange and  intergovernmental activity has grown ,
so this is another step in the development of the excellent relations between
two of the world’s leading democracies “