Income Tax Point-in-Time Service Updates

The Income Tax Point-in-Time Service has been updated to include the Treasury Laws Amendment (Foreign Investment) Act 2024 (Cth) (Act 18 of 2024) and the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share—Integrity and Transparency) Act 2024 (Cth) (Act 23 of 2024).

Act 18 of 2024

The Act amends the International Tax Agreements Act 1953 (Cth) to encourage investment which will boost Australia’s housing stock, while strengthening the integrity of Australia’s foreign investment rules.

Act 23 of 2024

The Act implements measures introduced by the Government in the October 2022-23 Budget. Schedule 2 to the Act amends the following Acts:

• Income Tax Assessment Act 1936 (Cth);
• Income Tax Assessment Act 1997 (Cth); and
• Taxation Administration Act 1953 (Cth).

The amendments limit the amount of debt deductions multinational entities can claim in an income year. The new thin capitalisation rules seek to align with the Organisation for Economic Cooperation and Development’s earnings-based best practice model which allows an entity to deduct net interest expense up to a benchmark earnings ratio.

These amendments have been updated in the Point-in-Time Income Tax Service current to 22 April 2024 (NB: subscription required).

If you are not already a subscriber to this or other Point-in-Time Services then please contact us to find out more or to take a free trial.