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Australia's 2012 Budget Cancels 1% Corporate Tax Rate Cut - by Maryse Mayer 

Global Tax Adviser

 

May 15, 2012

 

Maryse Mayer
Montreal, International Corporate Tax

 

Australia's 2012 budget proposes to cancel its proposed measure to reduce the corporate tax rate to 29% and, as a result, the rate will stay at 30%. The budget, which was tabled on May 8, 2012, also introduces a carryback of revenue losses and removes the capital gains discount for non-residents.

The budget proposes to:

 

  • Halt the proposed reduction to the corporate tax rate to 29%
  • Introduce a carryback of revenue losses for companies with a cap of $1 million of losses, but limited to the company's franking account
  • Increase the final withholding tax rate for managed investment trusts to 15% (from 7.5%) as of July 1, 2012
  • Remove the 50% capital gains discount for non-residents on gains accrued after May 8, 2012.

 

For more information, contact your KPMG adviser.

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