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In this section of our 2024-25 Federal Budget tax analysis, we outline the forward agenda for personal and business tax, and superannuation measures yet to be enacted.
Measures currently progressing
| Measure | Status |
|---|---|
| Business and investment | |
| Aligning the tax law for general insurers with AASB 17 Insurance Contracts, with effect for income years commencing on or after 1 January 2023. | Currently before Parliament. |
New tax incentives for eligible build-to-rent (BTR) projects, including:
|
Public consultation on draft legislation for these measures concluded on 22 April 2024. |
| Extend the existing clean building MIT withholding tax concession (currently 10 per cent) on certain fund payments so as to apply to data centres and waterhouses that meet energy efficiency standards from 1 July 2025. | Announced in the 2023-24 Federal Budget. No progress to date. |
| Clarify that mining, quarrying and prospecting rights (MQPRs) cannot be depreciated for income tax purposes until they are used and limit the circumstances in which the issue of new rights over areas covered by existing rights lead to tax adjustments. Both amendments will apply to MQPRs acquired or starting to be used after 7:30pm (AEST) on 9 May 2023. | Currently before Parliament. |
A range of changes to Petroleum Resource Rent Tax (PRRT), including, among other things:
|
Some measures are currently before Parliament.
Other proposed amendments have recently undergone consultation. |
| Temporary increase to the instant asset write off threshold to $20,000 for small businesses for eligible assets first used or installed ready for use from 1 July 2023 (refer to the Business and investment section for further details of the one year extension to 30 June 2025). | Currently before Parliament with the original 30 June 2024 end date. This will require further legislative amendments to extend the end date. |
| Small Business Energy Incentive, which provides small and medium businesses with an additional 20 per cent bonus deduction on investments relating to electrification and more efficient use of energy. Eligible assets or upgrades will need to be first used or installed ready for use between 1 July 2023 and 30 June 2024. | Currently before Parliament. |
| Introduction of “payday super” from 1 July 2026, which will require employers to pay superannuation guarantee entitlements on the same day that an employee’s salary or wages are paid. | Public consultation on this measure concluded on 3 November 2023. |
| Global tax | |
| Implementation of Pillar Two in Australia, including a Global and Domestic Minimum Tax, broadly with effect for fiscal years commencing on or after 1 January 2024 from (refer to our Tax Alert for more information). | Public consultation on draft primary legislation to implement these measures concluded on 16 April 20243. Consultation on draft subordinate legislation will conclude on 16 May 2024. |
| Introduction of Public Country by Country reporting for income years commencing on or after 1 July 2024 (refer to our Tax Alert for more information). | A second round of public consultation on this measure concluded on 5 March 2024. |
| Expansion of Australia’s tax treaty network | New treaty signed last year with Portugal and others are progressing (e.g. Ukraine and Brazil) |
| Increase the foreign resident capital gains withholding tax rate from 12.5 per cent to 15 per cent and reduce the withholding threshold from $750,000 to $0 from 1 January 2025. | Announced in the 2023-24 Mid Year Economic and Fiscal Outlook. No progress to date. |
| Personal tax and superannuation | |
| Reducing the tax concessions for individuals with a total superannuation balance (TSB) above $3 million by imposing an additional 15 per cent tax on certain earnings from 1 July 2025. | Currently before Parliament.
Consultation on draft regulations to enable this measure to be applied to defined benefit interests concluded on 26 April 2024. |
| Legislating the objective of superannuation. | Currently before Parliament. |
| Amendments to the non-arm’s length expense rules for superannuation funds broadly applicable from the 2018-19 income year. | Currently before Parliament. |
| Exempt from the Medicare Levy eligible lump sum payments made in arrears from 1 July 2024. | Public consultation on draft legislation to implement this measure concluded on 23 April 2024. |
| Other measures | |
| Amendments to expand the application of the general anti-avoidance rules for income years commencing on or after the day the amending legislation receives Royal Assent. | Announced in the 2023-24 Federal Budget. Refer to the Other tax measures section for further details regarding the deferral of the start date for this measure. |
| Increase the amount of the Commonwealth penalty unit from $313 to $330, with effect from 1 July 2024. | Currently before Parliament. |
| Deny deductions for ATO interest charges, specifically the general interest charge (GIC) and shortfall interest charge (SIC), incurred in income years starting on or after 1 July 2025. | Announced in the 2023-24 Mid Year Economic and Fiscal Outlook. No progress to date. |
| Increasing tobacco excise by five per cent per year for three years from 1 September 2023 and aligning tax treatment of loose-leaf products with manufactured sticks progressively between 1 September 2023 and 1 September 2026. | Currently before Parliament. |
There are several tax measures announced by the former Government that are outstanding with no indication of whether the current Government intends to proceed with them, including the previously announced changes to the tax residency rules for individuals and companies, and reforms to Division 7A of the Income Tax Assessment Act 1936 (relating to private company deemed dividends).
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