Date posted: 15/04/2024 5 min read

Have your say: Open Australian consultation items

Help shape Australian tax policy, legislation and administration

In brief

  • The CA ANZ Tax Team welcomes members’ feedback on Australian consultation items

Build-to-rent tax concessions – draft legislation

Treasury has released for public consultation exposure draft legislation and explanatory materials to implement the 2023-24 Budget measure to provide tax concessions to the build-to-rent (BTR) sector. For eligible new BTR projects where construction commences after 7:30 pm AEST on 9 May 2023, the Government will:

  • increase the rate for the capital works tax deduction from 2.5 per cent to 4 per cent per year
  • reduce the final withholding tax rate on eligible fund payments from managed investment trust investments from 30 per cent to 15 per cent.

Due date: 22 April 2024

Exempting lump sums payments in arrears from the Medicare levy – draft legislation

Treasury has released for public consultation exposure draft legislation and explanatory materials to implement the 2023-24 Budget measure to exempt eligible lump sum payments in arrears from the Medicare levy from 1 July 2024. To qualify for relief, taxpayers must:

  • be eligible for a reduction in the Medicare levy in the 2 most recent years, or income year, to which the lump sum accrues
  • satisfy the eligibility requirements of the existing lump sum payment in arrears tax offset, including that a lump sum accounts for at least 10 per cent of the taxpayer’s income in the year of receipt.

Due date: 23 April 2024

International taxation – global and domestic minimum tax – subordinate legislation

Treasury has released exposure draft subordinate legislation and explanatory materials to implement the 15 per cent global minimum tax and domestic minimum tax measure as part of a coordinated approach across approximately 140 Inclusive Framework member jurisdictions in line with the Two‑Pillar Solution. The subordinate legislation, in the form of Rules, comprise the key operative aspects of the Global Anti‑Base Erosion (GloBE) Model Rules (for example, computation of GloBE Income, effective tax rate calculations and so on).

Due date: 16 May 2024

Contact the CA ANZ Tax Team AU

Throughout the year we ask for members’ thoughts and feedback on consultation items. If an item is of interest to you or your clients, let us know your thoughts.