Taxation Determination

TD 95/2A1 - Addendum

Income tax: Offshore Banking Units (OBU): can foreign currency denominated assets and receivables generated from offshore banking (OB) activities be hedged into Australian dollars (AUD) and if so, would the AUD received from the forward sale constitute non-OB money?


This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends Taxation Determination TD 95/2 to update the end date of the Offshore Banking Unit regime.

TD 95/2 is amended as follows:

1. Paragraph 1

After the word 'OBU', insert new footnote 1:

1 The OBU regime is closed to new entrants from 14 September 2021. The concessional tax treatment for existing OBUs in respect of offshore activities will be removed effective from the 2023-24 income year. Interest payments paid on or after 1 January 2024 on offshore borrowings by OBUs will no longer be exempt from withholding tax.

This Addendum applies from 13 September 2021.

Commissioner of Taxation
13 October 2021


ATO references:
NO NAT 93/3707-5; 95/461-6

ISSN: 2205-6211