Taxation Law Australia Assessment 2022

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Author Note

TAXATION LAW1
Introduction
The investment in Australian agricultural sector has gained a considerable amount of
debates. Several concerns have been brought about regarding the approval with respect to the
foreign investment in the agricultural sector of Australia. The concerned mostly lies within
the area of accountability as well as transparency of the parties related. This issue has
invoked certain public concerns as well regarding the viability of such approval in
agricultural sector. However, from the perspective of the prosperity of Australia, the foreign
investments are having utmost importance1. This is because it assists the economy of
Australia and enhance the wellbeing of the population of Australia by providing support to
the financial growth of the country. For the purpose of making an investment in the
residential estate, the agricultural land as well as the water entitlements, a person being a
foreign person need to make an application to the Foreign Investment Review Board (FIRB)
for the purpose of registering the Investments with the Australian taxation office2. This
research paper would strive to analyse the tax treatments as well as the implications of the
same towards the foreigners who have been investing in the Australian agricultural
businesses. In doing the same, this paper would address the definition of foreigners as per the
taxation law prevailing in Australia. It will identify the tax treatment that are different for
foreigners and will present comparison between the same to that of the residents of Australia.
This paper would also suggest the treatments to was the foreigners that can be identified as an
implication. It will strive to provide certain recommendations with respect to the prevailing
law reforms relevant to this topic.
1 Kingwell, Ross, and Peter White. "Implications for Australia." (2018).
2 Ruth Sippel, Sarah. "Financialising farming as a moral imperative? Renegotiating the legitimacy of land
investments in Australia." (2018) Environment and Planning A: Economy and Space 50.3: 549-568.

TAXATION LAW2
Discussion
For the purpose of determining the tax treatments as well as implications with respect to
the foreigners investing in Australia towards the agricultural sector, the meaning of the term
foreigners is required to be assessed in the sense it is used in the Australian taxation law. Any
individual who cannot be treated as a resident in Australia as per the provisions contained in s
6-1 of the Income Tax Assessment Act 1936 (Cth)3, would be treated as a foreigner in
Australia for the purpose of taxation4. Any person who is foreigner for the purpose of
taxation in Australia would not be subject to taxation in Australia until and unless it has been
made evident that he has been earning from a source within the territory of Australia. Any
source of income located within Australia would result in the income being subject to
taxation in Australia only irrespective of the residency of the person earning the same. This
requires all the investments made by the foreigners within the precincts of Australia to be
subjected to taxation in Australia5. This would also be applicable towards the non-residents of
Australia. For the purpose of making an investment in the residential estate, the agricultural
land as well as the water entitlements, a person being a foreign person need to make an
application to the Foreign Investment Review Board (FIRB) for the purpose of registering the
Investments with the Australian taxation office6.
Definition of Foreigners
In case any foreign individual is having the desire to make an investment in the
agricultural land located within Australia, he needs to apply for an approval from the FIRB
prior investing. Moreover, a registration in relation to land and water needs to be completed
3 The Income Tax Assessment Act 1936 (Cth), s 6.1
4 Dixon, Janine, and Jason Nassios. "A Dynamic Economy-wide Analysis of Company Tax Cuts in Australia."
(2018).
5 Sippel, Sarah Ruth, Nicolette Larder, and Geoffrey Lawrence. "Grounding the financialization of farmland:
perspectives on financial actors as new land owners in rural Australia." (2017) Agriculture and Human Values
34.2: 251-265.
6 Magnan, André. "The financialization of agri-food in Canada and Australia: Corporate farmland and farm
ownership in the grains and oilseed sector." (2015) Journal of Rural Studies 41: 1-12.