Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Hansard source

I refer to the same argument that I put in talking to amendment (2), which is that the change to the taxation arrangements in relation to cross-border transfer pricing should be prospective only. Of course this amendment—which would amend schedule 1, item 14, page 15 (lines 6 to 8)—seeks to omit that particular item and substitute an application arrangement where the amendments made by this schedule apply to income years starting on or after the date this act commences. We think it is good and appropriate practice for governments and parliaments to make changes to tax laws that are prospective and not retrospective, in particular in these sorts of areas that are sensitive to Australia's capacity to attract overseas investment. Attracting overseas investment is very important for us to continue to develop our economy to ensure we reach our full potential moving forward. With those few words, I commend this particular amendment to the Senate.