Coalition plans to lure big foreign companies to Australia with tax breaks

The home affairs department will oversee a plan to use tax breaks, visas and fast-tracked planning approvals to lure foreign companies and “super talented” individuals to Australia, Alan Tudge said on Friday.

The acting immigration minister said former Property Council of Australia chief executive Peter Verwer, a mentor to Scott Morrison, has been appointed as the prime minister’s “special envoy” to head up the global business and talent attraction taskforce.

The taskforce will aim to encourage foreign companies to relocate, with an initial focus on advanced manufacturing, financial services including fintech, and health.

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Tudge said that as the “strategic environment” had changed due to the Covid-19 pandemic, Australia was “more advantaged” by its health record, social cohesion and relatively stronger economic performance.

The taskforce would adopt a “whole-of-government” approach using policy levers overseen by home affairs, AusTrade, the industry department, Treasury, and state and territory governments’ control over planning.

Companies considering a relocation may be concerned about “visas, they’ll be wanting to be assured there’s a skilled workforce here, in other occasions they’ll be seeking planning approvals and getting through the red tape”.

“But on occasion they’ll also be seeking financial incentives and we’ll deal with those on an individual basis,” he said.

The taskforce will run for two years and will report to a ministerial oversight committee chaired by Tudge, the industry minister, Karen Andrews, the assistant treasurer, Michael Sukkar, the skills minister, Michaelia Cash, and the trade minister, Simon Birmingham.

Asked if the federal government would disclose details of deals struck with foreign companies, Tudge said the government would provide “regular updates as to how well the taskforce is going”.

He suggested targets for talent recruitment could include “top scientists, entrepreneurs, investors or tech gurus”, explaining Australia had not marketed to individuals in that way since the 1950s. The recruitment was likely to see individuals move to Australia by early 2021.

Tudge defended the plan to support foreign-owned companies, saying the government had already provided “massive amounts of support for Australian industries” including the jobkeeper wage subsidy.

Verwer, who will work full time in the position, led the Property Council from 1992 to 2014, and is credited in one Australian Financial Review report with having hired Morrison, although the prime minister’s biography states he was the manager of policy and research from 1989 to 1995.

In his first parliamentary speech in 2008 Morrison thanked Verwer for his “great guidance and support”. In comments to Guardian Australia in 2019 Verwer credited Morrison as someone who is “good at both strategy and tactics” and “understands the aspirations of middle Australians”.

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The appointment follows the creation of the national Covid-19 commission advisory board chaired by the former Fortescue Metals chief Nev Power, which has been criticised as a form of executive expansion that lacks transparency.

Birmingham said that one in 10 jobs was supported by foreign direct investment so “boosting investment and getting more global businesses to set up shop here will help drive more jobs and opportunities for Australians”.

In July the government announced it would grant a five-year extension to about 10,000 temporary visa holders from Hong Kong to create a pathway to permanent residency for them and an estimated 2,500 applicants still outside Australia.

Tudge said that announcement responded to the “effective cessation” of the one-country-two-systems policy in Hong Kong and moves towards “a more communist” government.

China accused Australia of foreign interference over the visa changes.

There are still 23,000 Australians unable to return to Australia due to a national cabinet imposed cap on arrivals which is set to be discussed but is unlikely to be lifted on Friday.

Tudge said his home state of Victoria was not accepting international arrivals, but declined to criticise states and territories for not lifting their contribution to the cap.