May 15, 2012
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.