<<<<<<<<<<<<<<< BOOMERANG OWNERSHIP>>>>>>>>>>>>>>>

A number of countries require foreign investors to hand back ownership after the value of
their original investment has been paid back with sufficient profit to attract the investment.
Such 'boomerang' ownership policies are required in Australia to eliminate all current foreign
ownership over the next 20 years while encouraging new foreign investment required to
advance living standards.

Without such policies the Australian economy could go into reverse from the cost of paying
profits to foreigners. This year the cost of servicing foreign equity overtook the interest
expense of our excessive foreign borrowings. Australia is now ensnared in an equity trap
bigger than its debt trap!

The reversion of foreign ownership to employees, customers, suppliers would allow Australia
to escape both traps and obtain competitive advantages. Business establish-ments would
become owned by local voters who would have more detailed knowledge and personal
commitment to add value than any foreign controller.

The introduction of 'sunset' provisions on foreign ownership would rapidly expand the number
of local 'sunrise' businesses from the introduction of multiple opportun-ities for operational,
managerial and investment succession. As ownership transferred to Australian stakeholders,
foreigners would need to franchise any new know-how to their 'offspring' enterprises or compete
with them, perhaps with new investment. These processes would drive technical adaptation,
diversity, choice and rivalry to create a thriving indigenous entrepreneurial wealth creating
economy.

Boomerang ownership could be initiated by the government introducing a choice of tax
regimes for business. Foreign and local investors who wanted to reduce their risk by obtaining
quicker and bigger investment returns could select a lower tax rate on condition they returned
ownership to local stakeholders during the following 20 years.

The introduction of boomerang ownership tax policies would create win-win outcomes for :
tax collection; returns for investors; managers; employees; other stakeholders; business
productivity; the economy and the politicians who promote its introduction. Shann Turnbull

Shann Turnbull is an author, economist and lecturer, as well as a member of NSW ERA and
TOES. He has written several books including Democratising the Wealth of Nations, and
often writes for the Australian Financial Review.