Inbound and outbound investment

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Inbound and outbound investment

Bill introduced - 24 July 2014

On 17 July 2014, the Government released Tax and Superannuation Laws Amendment (2014 Measures No. 4) Bill 2014 (the Bill).

On 17 July 2014, the Government released Tax and Superannuation Laws Amendment (2014 Measures No. 4) Bill 2014 (the Bill).

The Bill includes:
  • Repeal of the current section 23AJ of the Income Tax Assessment Act 1936, and introduction of new subdivision 768-A in the Income Tax Assessment Act 1997 in respect of distributions and non-share dividends received from foreign companiesAmendments to the thin capitalisation regime
  • Integrity measures in respect of the capital gains tax provisions applying to non-residents.

These measures were announced in the 2013-14 Federal Budget (May 2013). Exposure draft (ED) legislation was previously released in May 2014.

The thin capitalisation changes and the introduction of new subdivision 768-A are forecast to raise $755 million over the forward estimates period.

The Government announced in November 2013 that it would not proceed with the repeal of section 25-90. In the 2014-15 Federal Budget, the Government announced that it had not yet made a decision on a “targeted anti-avoidance” provision to address certain conduit arrangements and was still seeking advice on this matter. No further announcement has been made as yet on this measure.

The attached document provides an overview of proposed new subdivision 768-A, as well as amendments to the thin capitalisation regime, and sets out implications and key considerations for affected taxpayers.

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Deloitte report, 24 July 2014 | 9 pages
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