Self-assessment of intangible assets - The Governement will not proceed with the measure which would have enabled businesses to self-assess the effective life of their intangible assets for tax depreciation purposes. This means that the current statutory rates will remain in place.
Treatment of off-market share buy backs - The Government will move to align the treatment of off-market share buybacks with that of on-market buy-backs by listed public companies with effect from 7.30pm 25 October 2022. This will result in a pure capital gains tax treatment for shareholders and there will be no opportunity for companies to pay a franked dividend component as part of the share buy-back proceeds. This will likely impact superannuation fund and other investors who benefit from franking credits attached to company dividends.
Tax Avoidance Taskforce - The Australian Taxation Office will be provided with an additional $200 million per year to extend the taskforce’s activities for a further two years to June 30 2025. The tax avoidance taskforce was established in 2016 to undertake activities targeted at multinationals, large public and private groups, trusts and high net worth individuals. Additional compliance activities are expected to increase tax receipts by $2.1 billion two-year period.
Tax Transparency - Large multinational companies will be compelled to publish certain tax information on a Country by Country (CbC) basis.
Limiting deductions for royalties paid to low-tax jurisdictions - The Government will move to prevent significant global entities claiming tax deductions in Australia where they are paid to countries with a tax rate lower than 15% or where they have a “no substance” patent box regimes.
National Reconstruction Fund - A $15 billion national reconstruction fund will be established to support, diversify and transform Australian businesses through co-investment in areas such as primary production, transport, defence and renewable energy.
Buy Australia Plan - A 10-point Buy Australian Plan will be introduced to support Australian businesses and jobs. The plan includes changes to the Commonwealth Procurement Rules.
Pacific Labour Scheme - The Government aims to strengthen Australia’s partnerships with Pacific island nations by delivering new programs, including the establishment of a new Australia Pacific Defence School.