Transcript

of

The Hon Peter Costello mp

Treasurer

&

His Excellency Mr J. Thomas Schieffer

US Ambassador to Australia

at

Signing of Protocol, Double Tax Agreement

Thursday, 27 September 2001

4pm

E&OE

TREASURER:

Well, ladies and gentlemen, the Ambassador and I have just signed a protocol

to modernise Australias Double Taxation Agreement with the United States. This

is something that has been negotiated for a considerable period of time. Under

the newly-negotiated Treaty, for many Australian companies who are, have branches

or subsidiaries in the United States, the current Dividend Withholding Tax will

be reduced to a rate of zero. In return, the Royalty Withholding Tax, which

applies to intellectual property, will be reduced, and this will also have advantage

for Australian businesses in giving them access to cheaper technology.

Australias investment overseas is greatest in the United States of America.

It is a very large market for Australian companies. Those companies that earn

income in the United States, will now be able to repatriate their dividends

and unlock that, which will be good for business and good for investment.

Mr Ambassador, can I thank the United States Government through you for the

spirit in which this Treaty was negotiated. I can assure you that the IRS was

no pushover, that they were very tough negotiators. I want to thank our negotiators,

many of whom are here today, for the work that they have put in. And I want

to really indicate that this represents a new step forward between our countries

of mutual investment earnings, and the kind of close relationship that we have

had.

Thank you very much.

AMBASSADOR:

On behalf of the United States, I too, am delighted to be here. And I want

to reassure you that you are not the only one that has had a tough time with

the IRS. They have always been tough on me too. But I am glad that we could

reach this agreement because I think it is an agreement that benefits both parties.

It will increase business between us, it will increase the flow of capital,

I think, into Australia, and investment of Australia into America, and investment

of America into Australia. And if there is anything that we have learned over

these last few years, it is that when we can reach agreement, we wind up with

an atmosphere that benefits both of us. And I think we have done that here,

and I am very happy to be here with you today to sign it.

Thank you.

TREASURER:

Thank you very much, thank you.