Welcome to our first policy and research update for 2020.
In November, we welcomed Brendon Harper as our new Head of Policy and
Since he started in this role, we have made a number of submissions,
attended government hearings and held stakeholder meetings in addition to
working on a pipeline of research projects. Recent highlights include:
- Our pre-budget submission to the Federal Government;
- Our submission on FinTech and RegTech reforms; and,
- Appearing at the Joint Standing Committee’s Trade and Investment Growth
For more detail, including upcoming activities, please find below a list of our main submissions, engagements and research from December 2019 through to February 2020.
Brendon is excited to be working with you and is looking forward to a busy
and productive 2020. If you have any policy or research questions or issues
you would like to discuss, please feel free to contact Brendon.
Submissions, hearings and government meetings
The Australian Investment Council lodged a pre-budget
submission to the Federal Government in December. Our submission highlighted the
positive contribution of the private capital industry to the Australian
economy and its direct contribution to Australian businesses. We made 17
recommendations, focussing on:
1) Modernising Australia’s Private Capital Investment Framework; and
2) Maintaining certainty and openness of Australia’s investment and trade
Senate Select Committee Inquiry into Financial Technology and
The Federal Government called for submissions on a Senate inquiry into
Financial and Regulatory Technology with a view to how Australian
businesses can deploy innovation to create the next wave of employment and
economic growth. The Australian Investment Council made a
to the inquiry and will appear at a hearing in Sydney in February.
Extending the definition of a Significant Global Entity (SGE)
to the Federal Treasury consultation, reiterating its concerns with a
number of aspects of the proposed expansion of the definition of a SGE. Our
submission made a number of recommendations that aim to better align
Treasury’s drafting with the intent of the legislation while reducing
Trade and Investment Growth Hearing
The Australian Investment Council appeared at the Joint Standing
Committee’s Trade and Investment Growth Hearing in Sydney. This follows the
in September 2019. The Hearing focused on the international competitiveness
of the current tax frame and barriers to foreign investment. A copy of the
Hearing’s Hansard, including our appearance, is available
Legal and Tax Advisory Committee meeting
The Legal and Tax Advisory Committee met on 31 January to discuss a range
of matters, including the meeting held with the ATO on the same day
Negative Control Update
The Legal and Tax Advisory Committee met with the ATO on 31 January to
discuss developments regarding the issue of Negative Control. This meeting
reinvigorated discussion on this long-running topic. The Council will
continue to engage with the ATO as work on this topic progresses.
Retirement Income Review
Following recommendations in the Productivity Commission's report into the
Efficiency and Competitiveness of Superannuation, the government
commissioned an independent Retirement Income Review. The Council made a
submission to the
Treasury consultation, highlighting the importance of having a world class superannuation
- The lost opportunity of focussing on fees and cost rather than fund
- The role of alternative assets is superannuation funds’ asset allocation
Consultation on Skilled Migration Occupation Lists
The Department of Employment, Skills, Small and Family Business regularly
reviews the skilled migration occupation lists to ensure they accurately
reflect the needs of Australian businesses. The Council will be reviewing
the list and making recommendations where appropriate.
Business Innovation and Investment Program: Getting a better deal for
Department of Home Affairs has launched a consultation on the Business
Innovation and Investment Program to see how the benefits of the
Significant Investor Visa can be maximised for Australian Businesses.
Select Committee on Financial Technology and Regulatory Technology
The Council has been invited to attend a hearing of Select Committee on
Financial Technology and Regulatory Technology. This follows the lodging of
our submission in December 2019 (see above).
AASB reporting and disclosure changes
We are coordinating a meeting with the AASB to discuss its recently
released Exposure Draft (ED 295) which proposes a new, separate disclosure standard that would replace the
current Reduced Disclosure Requirements framework. If you would like to
attend the AASB call, please let me know.
ASIC Roundtable on RG97
ASIC has called for attendees for three roundtables to be held in late
February to discuss the
November 2019 changes to RG97. If you would like to attend the ASIC roundtable, please let me know or
you can respond to ASIC directly.
Inquiry into foreign investment proposals
The Senate Standing Committee on Economics has released Terms of Reference
for an inquiry into foreign investment proposals. We are likely to make a
submission, click here to view the terms of reference.
Benchmark Report – Q2, 2019
In association with Cambridge Associates, the AIC released the
Q2 2019 Australia Private Equity and Venture Capital index and
benchmark statistics. The overview report is available to all members while access to the PE
and VC specific benchmarks is restricted. If you currently do not have but
would like access to these reports please contact me.
Political Insight Series: Interview with Simon Birmingham, Minister for
Trade and Investment
On behalf of the Council, Steve Lewis of Newgate Australia conducted an
with Simon Birmingham, Minister for Trade and Investment.
Political Insight Series: PM under fire
Steve Lewis of Newgate Australia gives us his insights into what is driving
the agenda in Canberra and the PM’s likely policy response following the
bushfires in this
Benchmark Report – Q3, 2019
The Q3 2019 benchmark reports are expected to be released in February 2020.
We are working with Preqin to release the 2020 Yearbook at the end of March
2020. If you are a LP or GP, a representative from your firm should have
received an email requesting you to review the externally-captured data
about your fund on the Preqin portal. We appreciate your assistance as the
annual Yearbook plays a vitally important role in helping to support the
Australian Investment Council’s advocacy and representation initiatives
with government and regulatory agencies on a wide range of issues.