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  • Tax integrity – expanding the general anti-avoidance rule in the income tax law

    On 9 May 2023, as part of the 2023–24 BudgetExternal Link, the Australian Government announced it will improve the integrity of the tax system by expanding the scope of the general anti-avoidance rule for income tax.

    This measure is not yet law.

    The general anti-avoidance rule for income tax will be expanded to include schemes that:

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

    This measure will apply to income years commencing on or after 1 July 2024, regardless of whether the scheme was entered into before that date.

      Last modified: 09 May 2023QC 72504