See pages 80-81 of the Sixth Report of 2013.

See pages 108-109 and following of the Tenth Report of 2013.

See Office of Best Practice Regulation, 'Investment Manager Regime: Element 3 - Regulation Impact Statement - Treasury,' Best Practice Regulation Updates (8 February 2012); available at http://ris.dpmc.gov.au.

http://cache.treasury.gov.au/treasury/afcf/content/final_report/downloads/AFCF_Building_on_Our_Strengths_Report.pdf .

http://ris.finance.gov.au/2011/09/16/interim-investment-manager-regime-%E2%80%93-regulation-impact-statement-%E2%80%93-treasury/ .

http://www.treasury.gov.au/contentitem.asp?NavId=037 & ContentID=2121 .

Of course, where the investment is in an Australian company, that company would remain subject to income tax. Note that withholding tax is not imposed on franked dividends. In addition, some foreign funds, such as foreign pension funds, may be exempt from withholding tax.

A fund will be deemed to be widely held if it has more than 25 members.

See Appendix A for a description of the kinds of income which will be eligible for exemption under Option 3.

http://www.treasury.gov.au/contentitem.asp?NavId=037 & ContentID=2121 .

Australia as a Financial Centre Report by the Australian Financial Centre Forum, November 2009, suggests up to 11% of funds under management are sourced offshore (p27). It notes ABS data suggesting the proportion is only 3.5%.

(ibid).

That is, gains are not subject to Australian tax, losses are not deductible.

Except to the extent that privately held companies are land rich, as defined in Division 855.