What Trump's "revenge tax" means for Australian investors | The Business | ABC NEWS
Among the many areas of Donald Trump’s ‘Big, Beautiful Bill’ that has raised concerns, one section in particular has Australian investors worried. Section 899, otherwise known as the foreign investment tax, or ‘revenge tax’, seeks to impose five per cent a year on foreign companies that invest in the US, to a total of 20 per cent.
NAB’s director of SMSF and investor behaviour, Gemma Dale says Donald Trump may be using the so-called ‘revenge tax’ as a negotiating tactic during trade talks while tariffs are on pause.
The bill still needs to pass Congress, but if it does pass, Gemma Dale says it would be “hugely problematic”.
She says there are a lot of differing opinions of how the proposed tax would impact Australian investors ranging from no concern that superannuation won’t be impacted, through to alarm that the withholding tax rate is “going to ramp up dramatically, unless Australia changes its foreign tax regime, which is not necessarily something we see happening in the near future”. It’s prompting investors to reassess their US investments.
#ABCBusiness
Subscribe:
ABC NEWS provides around the clock coverage of news events as they break in Australia and abroad. It’s news when you want it, from Australia’s most trusted news organisation.
For more from ABC NEWS, click here:
Watch more ABC NEWS content ad-free on ABC iview:
Go deeper on our ABC NEWS In-depth channel:
Like ABC NEWS on Facebook:
Follow ABC NEWS on Instagram:
Follow ABC NEWS on X (Twitter):
Note: In most cases, our captions are auto-generated.
#ABCNEWS #ABCNEWSAustralia
source
