On September 4th, 2023, Mr. Ming WONG-TOO-YUEN, Senior Curriculum Lead (Tax and Data) at the Chartered Accountants Australia and New Zealand, delivered a presentation focusing on Australia’s economy and its tax system to CBC members. Mr. Wong, who is from Mauritian parents, kindly offered to give the presentation whilst he was on holiday in Mauritius.
The presentation was very insightful and some of the main points were as follows:The Australian economy witnessed significant stimulus measures during the COVID-19 pandemic. Additionally, the impact of the Russia-Ukraine war contributed to rising commodity prices in Australia, resulting in sustained high inflation rates. Remarkably, the unemployment rate remained low in Australia, revealing a surplus of job opportunities but a shortage of available workforce. Consequently, the Australian Government is poised to embrace skilled migration, initially admitting approximately 160,000 individuals annually and subsequently increasing this number to 195,000.
The Organisation for Economic Co-operation and Development (OECD) has advocated for tax reforms which have impacted Australia’s international tax rules. Presently, the top tax rate in the country stands at 47%.
While the double tax arrangement between Australia and Mauritius remains limited, companies based in Mauritius can engage in business activities within Australia and generally enjoy a 25% tax rate. The presentation included various case studies demonstrating the procedures and strategies for conducting business successfully in the Australian market.