Australia-Germany Sign Tax Treaty; Michael Turnbull Visits for Submarine Bid
In the first step towards boosting trade and investment between the two nations, Australia and Germany have signed a new tax treaty in Berlin.
It also marks an attempt to improve the integrity of the tax system by pinning down on multinational tax evasion.
The deal, which preceded the arrival of Prime Minister Michael Turnbull in Berlin, was signed by Oz Finance Minister Mathias Cormann and German Fin Min Wolfgang Schäuble on Friday.
The government said it would introduce legislation to ratify the new treaty as soon as practicable.
Chancellor Merkel and PM Turnbull is also scheduled to release the recommendations of the Australia-Germany Advisory Group, established under Tony Abbott a year back when the German Premier visited Australia for the G20 leaders’ summit, in Berlin on Friday night (Aus time).
The report is expected to call for greater investment in cutting-edge industries like medical technology, advanced materials and renewable energy.
Germany is one of the three countries – with France and Japan – to bid for Australia’s next generation of submarines.
The new treaty also puts into effect recommendations from the G20 and Organisation for Economic Co-operation and Development on base erosion and profit shifting (BEPS).
Climate goals ahead of the UN Summit in Paris next month will also be a feature of conversations with Chancellor Merkel as will border security and the flow of hundreds of thousands of middle-eastern migrants into Germany.
News.com.au reported that Mr. Turnbull is on a five-nation tour. He visited Indonesia earlier and is scheduled to visit Turkey for the G20 summit.
The G20 meets at the onset of the greatest mass-uprising of migrants in Europe in 60 years.
The G20’s original charter was entirely economic – to prevent depression after the 2007/08 global recession – it is now broadening its drive towards tackling trade, security and strategic tensions, among its powerful and prosperous member nations.
Followed by the G20 summit, the assembly of 21 leaders at APEC in Manila will provide a good opportunity for PM Turnbull to have quite a few introductory bilateral meetings. With US President Barack Obama’s confirmation to attend, he will meet Australia PM Malcolm Turnbull for the first time.