In implementing our investment strategies we invest through various jurisdictions and investment vehicles for a variety of commercial, legal and tax reasons.

In Australia the Future Fund Act 2006 exempts the Board from paying income tax. This reflects the fact that our earnings are owned by the Australian Government. Internationally we also benefit from sovereign immunity for tax purposes on the bulk of our investments.

Nonetheless, properly structuring our investments can be essential to maintaining our rights and entitlements, including the benefit of sovereign immunity for tax purposes in certain jurisdictions. Failure to manage these matters can have a material impact on performance and would be inconsistent with our mandated objective to maximise risk-adjusted returns while not causing any diminution of the Australian Government’s reputation in financial markets.

We will only invest through arrangements and structures that are commonplace and well tested by other public investment institutions and funds in terms of compliance with applicable laws and regulations. We do not invest in schemes that contravene the OECD’s key principles of transparency and information exchange for tax purposes. In making investments we assess whether the jurisdictions through which we invest are regarded by the OECD as having substantially implemented the internationally agreed tax transparency standard.