Australian Federal Budget update
24 November 2022
In this legal alert Jon Broadley, Director of Commercial Dispute Resolution Services, and a Founding Partner of AGA member firm Broadley Rees Hogan Lawyers in Brisbane, summarises the budget as handed down by Australia's new government.
On Tuesday 25 October 2022 the Federal Treasurer in Australia handed down the first budget of the new Labor government which was elected to office in May 2022.
Against the background of uncertain global economic conditions, domestic low unemployment and strong export prices, the budget has been described as a sensible budget for current conditions. With inflation at a 30-year high of 7.3%, various cost of living relief measures were announced.
Matters of international interest relate to taxation of multinational organisations. In particular, changes to the “thin capitalisation rules” (deductibility of interest payments) and changes to tax deduction rules for intangibles were also made.
There were other important announcements for businesses including the following:
- Fringe benefits tax (FBT) and tariff exemptions for electric vehicles
- Change to tax treatment for off-market share buy backs of listed public companies
- Fuel tax credits – heavy vehicle road user charges increase
- No deductions for related party payments in low or no tax jurisdictions
- Increased tax information disclosure required for significant entities (turnover in excess of AUD $1 billion)
- Energy efficiency grants for small to medium enterprises (SMEs)
- Penalties doubled for foreign investment compliance
About Broadley Rees Hogan:
Broadley Rees Hogan is a well-resourced and diverse team of lawyers committed to providing technically excellent legal advice that is commercially relevant. They do so in a timely and cost-effective manner.
They are a mid-size legal practice conveniently located in the Brisbane CBD. Their size enables them to provide legal services often perceived as the province of larger firms. They are flexible in the delivery of those services whilst establishing and maintaining client relationships at a personal level.