Improving the integrity of off-market share buybacks

On 25 October 2022, as part of the 2022–23 Budget, the government announced it will improve the integrity of the tax system by aligning the tax treatment of off-market share buy-backs undertaken by listed public companies with the treatment of on-market share buy-backs. This measure is not yet law.

The proposed measure will prevent any part of the buy-back price being treated as a dividend. Instead, the entire buy-back price will be treated as capital proceeds.

This measure will apply from announcement on Budget night (7:30 pm AEDT, 25 October 2022).

For more information see, 2022–23 Budget, Paper No. 2External Link