Terms of Reference

On 29 March 2007, the Senate referred an inquiry into private equity investment and its effects on capital markets and the Australian economy to the Standing Committee on Economics.

The terms of reference for the inquiry are as follows:

That the Senate, noting that private equity may often include investment by funds holding the superannuation savings or investment monies of millions of Australians, and because of the actual and potential scale of private equity market activity, refers the following matters to the Economics Committee for inquiry and report by 20 June 2007 (see below for extension of time):

1. an assessment of domestic and international trends concerning private equity and its effects on capital markets;
2. an assessment of whether private equity could become a matter of concern to the Australian economy if ownership, debt/equity and risk profiles of Australian business are significantly altered;
3. an assessment of long-term government revenue effects, arising from consequences to income tax and capital gains tax, or from any other effects;
4. an assessment of whether appropriate regulation or laws already apply to private equity acquisitions when the national economic or strategic interest is at stake and, if not, what those should be; and
5. an assessment of the appropriate regulatory or legislative response required to this market phenomenon, if any.

Related link: Inquiry into the Private Equity Investment and its Effects on Capital Markets and the Australian Economy