Australia: Tax Treaties

The Australian Taxation Office has released its Decision Impact Statement following the High Court's landmark Bendel judgment on unpaid present entitlements and Division 7A. While some taxpayers who maintained passive arrangements may find relief, significant questions remain about the application of anti-avoidance provisions and the Commissioner's discretionary powers. The statement signals important changes to longstanding ATO guidance and raises critical considerations for trust and corporate beneficiary

The Australian Federal Budget for 2026-2027 introduces sweeping reforms to the tax system, including a controversial 30% minimum tax on discretionary trusts, abolition of the 50% CGT discount in favor of cost base ...

The Australian Government has released draft legislation proposing significant and retrospective changes to foreign resident capital gains tax rules, dramatically expanding what constitutes taxable Australian real property. These changes will apply to past transactions dating back to 2006, existing investments, and future deals, with only limited transitional relief for renewable energy assets until 2030.

A skilled international tax expert would help businesses reduce risks and develop effective tax planning strategies.

The ATO has released a new Taxpayer Alert [TA 2022/2] on treaty shopping arrangements, in particular: "arrangements designed to obtain the benefit of a reduced withholding tax … rate …

If the bill to enact OECD BEPS Measure 15 is passed, Australia will be one of the first signatories to implement it.

In February 2011 the Assistant Treasurer released a further exposure draft of the foreign accumulation fund (FAF) rules. These rules are intended as specific narrowly defined anti-avoidance rules that will replace the foreign investment fund (FIF) regime.

Fewer taxpayers will be dragged into the attribution net if the proposed simplification of the controlled foreign companies and foreign accumulation funds measures are adopted.

In a speech given by the Assistant Treasurer, The Hon Bill Shorten MP, at an Australian Chamber of Commerce gathering in Hong Kong on 19 January 2011, he stated that Australia is in the process of creating ‘a level playing field’ in respect of financial services, particularly funds management.