International investors will receive generous tax concessions if a proposed Australian Government initiative, which plans to halve the profit tax on the sale of all investment properties, passes a Senate vote expected later this month. Overall, the federal government's business tax package will reduce the capital gains tax for foreign and local investors by 50 per cent, injecting an estimated A$5 billion (about HK$25 billion) into the local economy during the next two years. Analysts believe the tax cut will draw international investment from United States pension funds and private overseas investors. One condition tied to the new reforms is that the property must be owned for at least one year. 'If the tax is slashed in half, I think it will have a pretty dramatic stimulus upon the market,' said Michael Bentley, Asia director for Central Equity. The proposed changes will reduce the capital gains tax to 25 per cent. However, assets will no longer be eligible for inflation-indexed deductions.