Eliminating Income Tax Barriers to Inbound Islamic Investment into Australia

Abstract

The increase in the revenues of Arab nations arising from the surge in world oil prices, together with the withdrawal of Arab investment from the United States, presents an opportunity for Australia to increase its share of Arab investment. But Islamic investors are expected to invest only in financial products and structures that comply with shariah law, which prohibits returns in the nature of interest. This article explores whether Australia's income tax laws should be amended to facilitate greater Arab investment in the country.