The infrastructure investment program contained in the Commonwealth Government’s 2017/18 Federal Budget presents significant opportunities for Chinese companies interested in partnering with local businesses, according to leading international Asia Pacific accounting and advisory firm, ShineWing Australia.
Commenting on the budget announcement, ShineWing Australia’s International Liaison Partner, Mr David Chu, said that the $75 billion in infrastructure funding represented a once in a generation chance for Chinese companies to capitalise on the significant opportunities these projects would deliver.
Mr Chu said “There are significant projects earmarked over the next decade in regional and metropolitan transport, energy and community infrastructure, all of which will be attractive to Chinese companies. However, it will be important that businesses interested in collaborating on these projects start planning now for engagement with the right Australian counterparts.
“The Australian Government is clearly going all out to drive growth with this budget, and this will mean significant opportunities exist for Chinese firms to help the Australian Government realise this ambition,” he said.
Mr Chu said one of the key features of this budget is the Government’s determination to improve housing affordability in Australia.
“While the measures adopted in this budget may have some slowing effect on property prices, the unlocking of Commonwealth land for development, combined with changes to assist first home buyers, will likely generate increased demand for more greenfield residential property development.
“Chinese companies are already active in the Australian residential construction sector, and any increased demand from first home buyers will present new opportunities for Chinese property developers to help meet this,” he said.
Mr Chu noted that the budget did flag new measures to improve the integrity of international tax arrangements. In particular, this included clamping down on hybrid instruments, the inclusion of structures involving foreign partnerships or foreign trusts in a broadened Multinational Anti-Avoidance Law, and increased tax audits around Diverted Profits Tax and Country-by-Country Reporting rules.
“Chinese companies should not be concerned about this renewed focus. However, they should take this opportunity to revisit their current structures and have in place an appropriate tax governance framework,” he said.
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About ShineWing Australia Pty Ltd
ShineWing Australia is a leading international Asia Pacific accounting and advisory firm with more than 36 Partners in Australia and an 80 year history of servicing local and international clients. Our member alliance with ShineWing International gives our clients access to ShineWing China - the largest indigenous Chinese domestic accounting practice, creating opportunities in specialist industries that provides local knowledge and real connections.