Details

Summary

Proposed date of effect

Status

Business

Small Business $20,000 Instant Asset Write-Off

Announced as part of the 2024-25 Budget, this measure would increase the instant asset write-off threshold for small businesses (aggregated turnover of less than $10m) from $1,000 to $20,000 for a further 12 months to cover eligible assets first used, or installed ready for use, between 1 July 2024 and 30 June 2025.

This measure was initially included in, but subsequently deleted from, the now-enacted Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024. This measure remains unenacted. 

1 July 2024 to 30 June 2025

Announced / Not Yet Actioned

Abolition of Nuisance Tariffs

The Hydrogen Production Tax Incentive, which was announced as part of the 2024-25 Budget to incentivise renewable hydrogen production, has been enacted. 

The incentive will provide a $2 incentive per kilogram of renewable hydrogen produced between 1 July 2027 and 30 June 2040, for up to ten years per project (provided that a final investment decision is made before 1 July 2030). 

1 July 2024

Announced / Consultation Closed

Hydrogen Production Tax Incentive

Provides small and medium businesses (with an aggregated turnover of less than $50m) with access to a bonus deduction equal to 20% of the cost of eligible assets or improvements to existing assets that support electrification or more efficient energy usage, from 1 July 2023 to 30 June 2024.

1 July 2027

Enacted

Critical Minerals Production Tax Incentive

The Critical Minerals Production Tax Incentive, which will provide eligible companies with a refundable tax offset equal to 10% of eligible processing costs referable to minerals listed on Australia’s Critical Minerals List, has been enacted. 

The credit will be available for production occurring between 1 July 2027 and 30 June 2040, with eligible facilities able to claim it for up to 10 years. 

1 July 2027

Enacted

Significant Global Entity (SGE) Penalty Regime for Royalties

A new penalty regime that applies to SGEs that are found to have ‘mischaracterised or undervalued’ royalty payments to which royalty withholding would otherwise apply.

1 July 2026

Payday Superannuation Guarantee (SG)

Employers will be required to pay their employees’ SG entitlements on the same day that they pay salary and wages

1 July 2026

Announced / Consultation In Progress

International

Updates to foreign resident Capital Gains Tax (CGT) Regime

The Government announced amendments to strengthen the integrity of the foreign resident CGT regime.

Changes include:

• Clarification and broadening on the types of assets on which foreign residents are subject to CGT
• Amending the point in time principal asset test to a 365 day testing period

Foreign residents disposing of shares and other membership interests exceeding $20m will have to notify the ATO prior to the transaction

This measure has been deferred.

The later of 1 October 2025 and the first 1 January, 1 April, 1 July, or 1 October after  the relevant amending legislation receives Royal Assent.

SGEs – denial of deductions (intangibles)

The Government announced the discontinuance of the previously announced Denying deductions for payments relating to intangibles held in low – or no – tax jurisdictions measure as relevant integrity concerns will be addressed through the Global Minimum Tax and Domestic Minimum Tax measures. 

1 July 2023

Discontinued

Other

Time Frame Increased for ATO to hold BAS Refunds

The timeframe for the ATO to notify a taxpayer if it intends to retain a BAS refund for further investigation has been extended from 14 days to 30, to match time limits for non-BAS refunds.

Announced / Before Parliament

Expansion of general anti-avoidance rules in income tax law

General anti-avoidance rules to be expanded to include schemes that:

• Reduce tax paid in Australia by accessing a lower withholding tax rate on income paid to foreign residents; or
• Achieve an Australian income tax benefit, even where the dominant purpose was to reduce foreign income tax.

1 July 2024

Announced / Not Yet Actioned

Digital currency not a foreign currency

Digital currencies (such as Bitcoin) would not be foreign currencies for Australian income tax purposes even if they are adopted as legal tender by a foreign jurisdiction. 

1 July 2021

Discontinued