All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Australia: Tax changes in store with new government


Tom Seymour, PwC

With a newly elected Australian federal government, it is opportune to consider the tax-related changes it proposes in its first term of office. These changes include not only a commitment to abolish the recently implemented carbon tax and mining tax, but also corporate tax rate changes. The following is a snapshot of the main business tax measures that are on the new government's agenda:

  • Reduce the company tax rate from 30% to 28.5% from July 1 2015;

  • Apply a 1.5% levy on companies with more than A$5 million ($4.8 million) in taxable income to fund a paid parental leave scheme which is to provide mothers with 26 weeks of paid leave at their actual wage (capped at A$150,000 per annum) or the national minimum wage (whichever is greater), plus superannuation;

  • Abolish the carbon tax;

  • Discontinue the company loss carry-back measure;

  • Remove for small businesses the increase to the instant asset write off threshold and the A$5,000 upfront deduction for the cost of a motor vehicle;

  • Abolish the minerals resource rent tax which applies to Australian iron ore and coal miners;

  • Introduce an exploration development incentive to provide investors in small minerals exploration companies a tax credit for exploration expenditure;

  • Delay the progressive increases in the compulsory superannuation paid by employers;

  • Discontinue the phase-down of interest withholding tax on financial institutions;

  • Reject the previous government's proposal to remove the statutory formula method for determining fringe benefits tax on employer-provided motor vehicles; and

  • Provide greater taxpayer certainty by requiring all new tax legislation to express the government's policy intent.

At the time of writing, the new government was yet to indicate its position on a number of the former government's un-enacted proposals, for example modified thin capitalisation rules and limiting tax concessions for foreign investment by Australian companies, but has "reserved the right to implement" these measures.

Business will be keenly interested in the government proposal to produce a white paper on tax reform with a view to canvass a range of future options to support lower, simpler, fairer taxes for higher economic growth and better sustained services.

With the government's declaration that "Australia is once more open for business" its first term tax agenda is designed to remove some impediments to growth, with the removal of the carbon tax being the centrepiece of its tax reform agenda.

Tom Seymour (


Tel: +61 (7) 3257 8623

more across site & bottom lb ros

More from across our site

The Biden administration is about to give $80 billion to the Internal Revenue Service to enhance the tax authority’s enforcement processes and IT systems.
Audi, Porsche, and Kia say their US clients will face higher prices under the Inflation Reduction Act after the legislation axes an important tax credit for electric vehicle production.
This week Brazil’s former President Luiz Inacio Lula da Silva came out in support of uniting Brazil’s consumption taxes into one VAT regime, while the US Senate approved a corporate minimum tax rate.
The Dutch TP decree marks a turn in the Netherlands as the country aligns its tax policies with OECD standards over claims it is a tax haven.
Gorka Echevarria talks to reporter Siqalane Taho about how inflation, e-invoicing and technology are affecting the laser printing firm in a post-COVID world.
Tax directors have called on companies to better secure their data as they generate ever-increasing amounts of information due to greater government scrutiny.
Incoming amendments to the treaty could increase costs on non-resident Indian service providers.
Experts say the proposed minimum tax does not align with the OECD’s pillar two regime and risks other countries pulling out.
The Malawian government has targeted US gemstone miner Columbia Gem House, while Amgen has successfully consolidated two separate tax disputes with the Internal Revenue Service.
ITR's latest quarterly PDF is now live, leading on the rise of tax technology.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree