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Details | Summary | Proposed date of effect | Status |
Business | |||
Payday Superannuation Guarantee (SG) | Employers will be required to pay their employees SG entitlements on the same day that they pay salary and wages. | 1 July 2026 | Announced / Consultation In Progress |
Small Business $20,000 Instant Asset Write Off | Increases the instant asset write off threshold for small businesses (with an aggregated turnover of less than $10m) from $1,000 to $20,000 for eligible depreciating assets first used or installed ready for use between 1 July 2023 and 30 June 2024.
This measure is currently before the Senate, which has proposed amendments to increase the aggregated turnover threshold to small and medium businesses (with an aggregated turnover of less than $50m), and increase the asset write off threshold to $30,000. | 1 July 2023 to 30 June 2024 | Announced / Before Senate |
Small Business Energy Incentive | Provides small and medium businesses (with an aggregated turnover of less than $50m) with access to a bonus deduction equal to 20% of the cost of eligible assets or improvements to existing assets that support electrification or more efficient energy usage, from 1 July 2023 to 30 June 2024. | 1 July 2023 to 30 June 2024 | Announced / Before Senate |
Increased deduction for small businesses external training expenditure | Small business entities (with an aggregated turnover of less than $50m) will be able to deduct an additional 20% of expenditure incurred on external training programs to their employees until 30 June 2024. | 7:30pm AEDT, 29 March 2022 to 30 June 2024 | Enacted |
Franked distributions funded by capital raisings | Date from which the measure applies changed from 19 December 2016 to 15 September 2022. | 15 September 2022 | Enacted |
Off market share buy backs | Alignment of the tax treatment of off market share buy backs undertaken by listed public companies with the treatment of on market share buy-backs. | 7:30pm AEDT, 25 October 2022 | Enacted |
Primary producers selling Australian Carbon Credit Units (ACCU) | Primary producers will treat revenue from the sale of ACCUs as primary production income, providing access to income tax averaging arrangements and the Farm Management Deposit scheme. Revenue from ACCUs will be recognised in the year of sale to support cash flow. | 1 July 2022 | Enacted |
Primary producers selling biodiversity certificates | The tax treatment of biodiversity certificates will be aligned with the new tax regime for ACCUs. The start date of this measure has been deferred from 1 July 2022 to 1 July 2024. | 1 July 2024 | Announced / Not Yet Actioned |
Denying deductions for ATO interest charges | Deductions will be denied for ATO General Interest Charges (GIC) and Shortfall Interest Charges (SIC). Any GIC or SIC that is later remitted will no longer need to be included as assessable income. | 1 July 2025 | Announced / Not Yet Actioned |
International | |||
Pillar Two - Implementation of Global Minimum Tax (GMT) and Domestic Minimum Tax (DMT) | Implements the following Pillar 2 measures:
| 1 January 2024 | Announced / Exposure Draft Legislation Released |
Thin capitalisation: new earnings-based tests for limiting debt deductions | The safe harbour and worldwide gearing tests have been replaced with earnings-based tests so that debt deductions are limited in line with profitability.
Additionally, the arm’s length debt test has been replaced by an ‘external thirdparty debt test’ which allows interest expenses to be deducted to the extent that they are attributable to ‘genuine third-party debt’ used to fund Australian business operations. | 1 July 2023 | Enacted |
Significant Global Entities (SGEs) – denial of deductions (intangibles) | Anti-avoidance rule to prevent SGEs from claiming tax deductions made to related parties (directly or indirectly) in relation to intangibles connected with ‘low corporate tax jurisdictions.’. | 1 July 2023 | Announced / Exposure Draft Legislation Released |
Public Country-by-Country (CbC) Reporting | Transparency measure for certain large multinational enterprises (CBC reporting parents) to prepare for public release of certain tax information on a country-by-country basis and a statement on their approach to taxation. | 1 July 2024 | Announced / Exposure Draft Legislation Released |
Disclosure of subsidiary information | Transparency measure for Australian public companies (listed and unlisted) to disclose information on the number of subsidiaries and their countries of tax residency. | 1 July 2023 | Enacted |
Increase in integrity of Foreign Resident Capital Gains Withholding (FRCGW) regime | Increases the FRCGW rate from 12.5% to 15% and reduces the withholding threshold from $750,000 to $nil. | 1 January 2025 | Announced / Not Yet Actioned |
Individuals | |||
Amendments to Stage 3 Tax Cuts | Modified the original stage 3 tax cut measures announced in the 2018-19 Federal Budget for the following amendments:
| 1 July 2024 | Enacted |
Tax Integrity | |||
Expanding general anti-avoidance rules in income tax law | General anti-avoidance rules to be expanded to include schemes that:
| 1 July 2024 | Announced/Not Yet Actioned |
Commonwealth penalty unit increase | Increase the amount of the Commonwealth penalty unit by 5.4% from $313 to $330. | 4 weeks after Royal Assent | Announced / Not Yet Actioned |
Non-deductibility of general interest charge (GIC) and shortfall interest charge (SIC) | Amendments to income tax legislation to deny the deductibility of GIC and SIC. | 1 July 2025 | Announced / Not Yet Actioned |
Superannuation | |||
Reduction in superannuation concessions | To bring the headline tax rate to 30%, up from 15%, for earnings corresponding to the proportion of an individual’s total superannuation balance that exceeds $3million. | 1 July 2025 | Announced / Before House of Representatives |
Other | |||
Mining, quarrying or prospecting rights (MQPR) | Amendments to income tax legislation to clarify that MQPR cannot be depreciating until they are used (cf. merely ‘held’) and the circumstances in which the issue of new rights over areas covered by existing rights leads to income tax adjustments. | MQPR acquired or first used after 7:30pm AEST, 9 May 2023 | Announced / Before House of Representatives |
Petroleum Resource Rent Tax (PRRT) anti-avoidance rules | Amendments to PRRT anti avoidance rules to align with income tax anti-avoidance rules. | 1 July 2023 | Announced / Before House of Representatives |
PRRT – Review of Gas Transfer Pricing arrangements | Introduces a 90% cap on the use of deductions to offset assessable PRRT income of liquified natural gas (LNG) producers under the PRRT.
Exposure draft legislation has been issued for consultation in connection with proposed amendments to the Petroleum Resource Rent Tax Assessment Regulations 2015. | 1 July 2023 (1 July 2024 for the PRRT instalment regime) | Announced / Before Senate |
Build to Rent (BTR) Tax Concessions – increase in rate of capital works deduction | Increase in the rate of capital works deduction from 2.5% to 4% per annum for eligible new BTR projects commenced after 7:30pm on 9 May 2023. | 7:30pm AEDT, 9 May 2023 | Announced / Exposure Draft Legislation Released |
BTR Tax Concessions – reduction in withholding tax | Reduction in withholding tax rate on eligible fund payments from Managed Investment Trust (MIT) investments from 30% to 15%. | 7:30pm AEDT, 9 May 2023 | Announced / Exposure Draft Legislation Released |
Digital currency not a foreign currency | Digital currencies (such as Bitcoin) will not be foreign currencies for Australian income tax purposes even if they are adopted as legal tender by a foreign jurisdiction. | 1 July 2021 | Announced / Exposure Draft Legislation Released |
Federal Budget 2024-25
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