Advance pricing arrangements : an Australian Tax Office success or a legislative failure?

Australia’s domestic income tax legislation and double tax agreements contain transfer pricing rules which are designed to counter the underpayment of tax by businesses engaged in international dealings between related parties. The current legislation and agreements require that related party transactions take place at a value which reflects an arm’s length price, that is, a price which would be charged between unrelated parties. For a host of reasons, it is increasingly difficult for multinational entities to demonstrate that they are transferring goods and services at a price which is reflective of the behaviour of independent parties, thereby making it difficult to demonstrate compliance with the relevant legislation. Further, where an Australian business undertakes cross-border related party transactions there is the risk of an audit by the Australian Tax Office (ATO). If a business wishes to avoid the risk of an audit, and any ensuing penalties, there is one option: an advance pricing arrangement (APA). An APA is an agreement whereby the future transfer pricing methodology to be used to determine the arm’s length price is agreed to by the taxpayer and the relevant tax authority or authorities. The ATO views the APA process as an important part of its international tax strategy and believes that there are complementary benefits provided to both the taxpayer and the ATO. The ATO promotes the APA process on the basis of creating greater certainty for all parties while reducing compliance costs and the risk of audit and penalty. While the ATO regards the APA system as a success, it may be argued that the implementation of such a system is simply a practical solution to an ongoing problem of an inherent failure in both the legislation and ATO interpretation and application of this legislation to provide certainty to the taxpayer. This paper investigates the use of APAs as a solution to the problem of transfer pricing and considers whether they are the success the ATO claims. It is argued that there is no doubt that APAs provide a valuable practical tool for multinational entities facing the challenges of the taxation of global trading under the current transfer pricing regime. It does not, however, provide a long term solution. Rather, the long term solution may be in the form of legislative amendment.

Globalization and suburbanization : can creative industries develop in outer urban zones? the Australian case

The creative cities literature gives an emphasis to developing cultural amenity and creative clusters in inner city areas, in order to attract both international visitors and what Richard Florida termed the “creative class”. But many creative workers live in outer urban zones (suburbs). How do creative industries policies meet their needs? This paper reports on a three-year study supported by the Australian Research Council into creative workforce in Australian suburbs in the cities of Melbourne and Brisbane.

Adoption of innovative products on Australian road infrastructure projects

Product innovation is an important contributor to the performance of infrastructure projects in the construction industry. Maximizing the potential for innovative product adoption is a challenging task due to the complexities of the construction innovation system. A qualitative methodology involving interviews with major construction project stakeholders is employed to address the research question: ‘What are the main obstacles to the adoption of innovative products in the road industry?’ The characteristics of six key product innovation obstacles in Australian road projects are described. The six key obstacles are: project goal misalignment, client pressures, weak contractual relations, lack of product trialling, inflexible product specifications and product liability concerns. A snapshot of the dynamics underlying these obstacles is provided. There are few such assessments in the literature, despite the imperative to improve construction innovation rates globally in order to deliver road infrastructure projects of increasing size and complexity. Key obstacles are interpreted through an open innovation construct, providing direction for policy to enhance the uptake of innovation across the construction product supply network. Early evidence suggests the usefulness of an open innovation construct that integrates three conceptual lenses: network governance, absorptive capacity and knowledge intermediation, in order to interpret product adoption obstacles in the context of Australian road infrastructure projects. The paper also provides practical advice and direction for government and industry organizations that wish to promote the flow of innovative product knowledge across the construction supply network.

Loving Europe : Charmian Clift, Peel Me a Lotus, and Australian women writing travel

“There it went!—Our last little bit of capital, our going back to civilization money . . .” So Charmian Clift fretted when she watched her husband George Johnson hand over a large number of drachma notes to buy a house on the Greek Island of Hydra in 1956. Whereas today’s expatriates fly back and forth between home and away with ease, Clift’s commitment to Hydra meant that a return to Australia, “to civilization”, would always be difficult and perhaps impossible...

Seeing a hard country : Lawrence’s Australian landscape

In 1944 Australian author Eleanor Dark wrote that Australia is a hard country for an outsider to see, citing, in evidence, the writing of the “strange, foreign-looking little man with the beard” -- the self-described by D. H. Lawrence. According to Dark, Lawrence was bewildered by Australia because what his eyes saw was not what they were accustomed to seeing. Kangaroo, she wrote, suggests one long, tormented effort to see. Lawrence appears, for Dark, to be half-blind, struggling, and irritated almost beyond belief with his visit to New South Wales. Eleanor Dark wrote this critique in 1944, long after Lawrence’s 1922 visit, but for her, as for other Australian writers, Kangaroo continued to register as an important book, even if the content rankled. Katharine Susannah Prichard and Christina Stead, both advocates in general of Lawrence, likewise rejected the tenor of Kangaroo, although Lawrence would not have been worried about the response. In 1929 he referred to his irritation with Australia in letters to P.R. “Inky” Stephensen, the Australian nationalist and publisher, and he does not seem to have changed his opinions since writing Kangaroo. Yet the novel continued to be significant for Australian writers, even if as a provocation. My discussion traces the responses of the women authors to Kangaroo, and refers to Lawrence’s letters to Stephensen, as a way of emphasizing this significance, seen especially in relation to ideas about ‘seeing’ and the Australian landscape.

Review of "Postcolonial Issues in Australian Literature" edited by Nathanael O’Reilly (Cambria Press, 2010)

Some years ago I opened the 1998 edition of the Johns Hopkins Guide to Literary Theory and Criticism and turned to the entry ‘Australian Theory and Criticism.’ This read: ‘Australia has produced no single critic or theorist of international stature, nor has it developed a distinct school of criticism or theory.’ Postcolonial content was listed under a section called Postcolonial Cultural Studies and there one found key names including Tiffin, Ashcroft, Stephen Slemon, and During...

"The greatest harbour in the world" : Sydney Harbour as a contested space in Australian culture

It is a matter of public record that the former Prime Minister of Australia, the Honourable Paul Keating, upset certain Australian architects with his intervention into the redevelopment of the 22-hectare “Barangaroo” site on Sydney Harbour. While Keating’s intervention continues to provide engaging theatre for Sydney residents the debate is also an interesting expression of the narrative of contestation that has been played out historically about the waters of Sydney Harbour. From a cultural studies perspective, the Harbour, and the Sydney Harbour Bridge, has been for many years a political and imaginative space that captures a diversity of local and national preoccupations. Keating’s announcement that planners have a “once-in-200-year opportunity to call a halt to the kind of encroachments we have seen in the past” is in fact another moment in the long history of disputation over the impact of the man-made environment on the natural landform in this area. This paper addresses the spaces of Sydney Harbour as represented in recent debates and in writing and film from previous decades. The argument suggests that the Harbour is a complex site of public and private enactment that is played out in a diverse range of cultural representations. In particular, the paper notes the work of Michel de Certeau on the mythic qualities of certain spaces in relation to the space of the Harbour. ‘The Greatest Harbour in the World’ argues that the Harbour, and the Bridge, fulfils a particular historical and cultural function that gives this space a set of meanings that are well beyond the typical parameters of urban development.

'The comfort lies in all the things you can do': the Australian drive-in: cinema of distraction

Contrary to the claims of some film historians, the drive-in was not a uniquely American invention. Australian drive-in cinemas were, at least in the 1950s and 1960s, distinguishable from their American counterparts by virtue of the profusion of additional amusements (or distractions) they offered alongside film-viewing. This article traces the history of Australian drive-ins as ‘entertainment centres’ and ‘high temples of modernity’. It argues that the drive-in can usefully be understood as a mid-point between the domestic and public spheres, and a powerful symbol of post-WWII Australia, signifying prosperity, gathering consumer confidence and, in metropolitan areas, marking the path of urban development through its concentration in new, outer suburban areas.

A bureaucratic cinema: the fraught relationship between government and film

The interventions by the government in the production and circulation of film in late 1960s transformed the Australian cinema industry into a bureaucratic cinema because of its established agencies and institutions for the benefit of filmmakers. Training options expanded by the commencement of the Australian Film and Television School and the Film, Radio and Television Board of the Australia Council, which ran compulsory orientation seminars and workshops on the use of new equipments, helped the aspiring filmmakers to access money from the council's Basic Production Fund.

Outward-looking Australian cinema

Over the last twenty years or so, Australian cinema's international relations in production and policy have expanded and become more complex, while those with Hollywood have been transformed. The boundaries of the national cinema stretch much further than the national territory. Australian production and postproduction companies work in Australia with international partners or on international projects. In this article I will trace some of the material and discursive entailments of this new international turn to explore how dynamic and shifting relations between the local/national and the international have transformed the ways in which we might think about what constitutes Australian cinema, and to illustrate how relations of commonality and continuity with the international called up in the new arrangements challenge the dominant articulation in policy of difference from 'other kinds of filmmaking' as the basis of Australian cinema. I draw on Deb Verhoeven's work on simultaneously national and international films and filmmakers, and adapt Doreen Massey's concept of 'outwardlookingness' to consider Australian cinema's international aspects.

Australian content and convergence

This article is a response to Kim Dalton's 2011 Henry Mayer Lecture. It focuses on Dalton's discussion of Australian content in the context of the government's ongoing Convergence Review.