The Government will address a number of loopholes and abuses in Australia's corporate tax system. This will ensure that it remains fair, competitive and sustainable.
The Government is acting to protect our corporate tax base from erosion by closing down loopholes and abuses. Many of these abuses take advantage of design flaws, vulnerabilities and unexpected interactions from earlier Howard Government changes to the corporate tax system.
Protecting our corporate tax base will ensure that we have a stable source of revenue to fund vital investments that will underpin a stronger, smarter and fairer Australia.
If some taxpayers do not pay their fair share of tax, a higher tax burden will fall on Australian families and small businesses. Those businesses that do the right thing will be at a competitive
disadvantage and confidence in our tax system will be eroded.
The Government's response to the loopholes and abuses identified by the Commissioner of Taxation is informed by Treasury advice and follows targeted consultation with industry. The changes:
These changes build on recent initiatives to improve the integrity and sustainability of the tax system and our corporate tax base through important reforms to the general anti‑avoidance rules and the transfer pricing rules.