Better targeted superannuation concessions

Date: 31 March 2023 – 17 April 2023

On 28 February 2023, the government announced it would reduce the superannuation tax concessions available to individuals whose total superannuation balances exceed $3 million. The changes will apply from 1 July 2025.

This reform is intended to bring the headline tax rate to 30 per cent, up from 15 per cent, for earnings corresponding to the proportion of an individual’s superannuation balance that is greater than $3 million. Earnings relating to assets below the $3 million threshold will continue to be taxed at 15 per cent or 0 per cent if held in a retirement pension account.

The government is seeking views from interested parties on the implementation of these changes. Specific consultation questions are outlined within the consultation paper.

Further information available here.


Multinational tax integrity – denying deductions for payments relating to intangible assets connected with low corporate tax jurisdictions

Date: 31 March 2023 – 28 April 2023

As part of the 2022‑23 Budget, an anti‑avoidance measure to prevent large multinationals from claiming tax deductions for payments relating to intangibles connected with low corporate tax jurisdictions was announced. The measure forms part of the government’s commitment to ensure that multinational enterprises pay their fair share of tax in Australia to help fund vital services, repair the Budget and level the playing field for Australian businesses.

The government has prepared exposure draft legislation to give effect to the measure.

A previous consultation on this initiative, along with other multinational enterprise interest limitation (thin capitalisation) and transparency proposals, was held in August and September 2022.

The government is seeking stakeholders’ views on the exposure draft legislation and accompanying explanatory material implementing this measure.

Stakeholders’ views are also sought on priority issues that would inform the ATO’s public advice and guidance on this measure.

The government is simultaneously consulting on the other elements of its multinational tax integrity package as separate measures, with consultation occurring on interest limitation (thin capitalisation) rules, and disclosure of subsidiary information. Consultation on the public country-by-country measure will commence shortly.

Further information available here.

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