The Government’s focus in the corporate taxation sphere in this budget has been on the Future Made in Australia tax incentives (see Green Energy section below and the targeted international tax changes (see International section below). The majority of the changes in this year’s budget relate to minor amendments of existing measures and no new initiatives are announced.
Amendments to existing measures
2023–24 Budget Pt IVA measures – Start date changed
The Government has announced that the start date for the 2023–24 Budget Pt IVA measures will be pushed back from 1 July 2024 to on or after the day the amending legislation receives Royal Assent, regardless of whether the scheme was entered into before that date. These measures will expand the scope of Pt IVA so that it can apply to:
- schemes that reduce tax paid in Australia by accessing a lower withholding tax rate on income paid to foreign residents; and
- schemes that achieve an Australian income tax benefit, even where the dominant purpose was to reduce foreign income tax.
- 2022-23 October Budget Thin Capitalisation
The Government has announced the amendment of the 2022-23 October Budget Thin Capitalisation measure to exempt Australian plantation forestry entities from the new earnings-based rules, allowing these entities to continue to apply the former asset-based thin capitalisation rules.
2022-23 March Budget announcement - Rugby World Cup
The Government has announced further exemptions to the 2022-23 March Budget announcement in respect of the Rugby World Cup 2027 (Men’s) and Rugby World Cup 2029 (Women’s) by providing income tax exemptions to World Rugby and/or related entities for income derived in relation to these events. These exemptions will apply to income derived in relation to these events for the 2023-34 to 2030-31 income years (inclusive). The Government will also provide an exemption from interest, dividend and royalty withholding tax liabilities arising from payments in relation to these events.
Extension of refunds of indirect tax under the Indirect Tax Concession Scheme
The Government has announced the extension of refunds of indirect tax (including GST, fuel and alcohol taxes) under the Indirect Tax Concession Scheme. In addition, the Government has announced minor amendments to the start date of the 2022-23 March Budget streamlined excise administration for fuel and alcohol measure to commence on the later of 1 July 2024 (current start date) or the day following Royal Asset. In addition, the removal of regulatory barriers applying to bunker fuels for commercial shipping industries will apply from 1 January 2025, instead of 1 July 2024.
Extension of the current charity transitional reporting arrangement
The Government has announced it will remake the Australian Charities and Not-for-profits Commission (Consequential and Transitional) Regulation 2016 with an extension of the current charity transitional reporting arrangement for 5 years.
Commissioner's discretion to not use a taxpayer's refund to offset old tax debts
The Government will amend the tax law to give the Commissioner of Taxation (Commissioner) a discretion to not use a taxpayer’s refund to offset old tax debts, where the Commissioner had put that old tax debt on hold prior to 1 January 2017. This discretion will apply to individuals, small businesses and not-for-profits, and will maintain the Commissioner’s current administrative approach.
2019-20 Budget measure to impose new compliance obligations for ABN holders – Not proceeding
The Government has announced it will no longer proceed with the proposed 2019-20 Budget measure to impose new compliance obligations for ABN holders to retain their ABN. These measures are no longer considered necessary on the basis that it has been addressed through “enhanced administrative processes implemented by the ATO.”
