• Service: Tax, Global Transfer Pricing Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 10/22/2013

Australia - Carbon tax repeal, financing arrangements, thin capitalisation  

October 22: Tax issues currently the subject of public consultation with Australia’s government, Board of Taxation, or the Australian Taxation Office (ATO) include:
  • Repeal of the carbon tax and introduction of the Coalition’s emissions reduction fund - The government is consulting on draft legislation to carbon tax and seeking views on the alternative emissions reduction fund, including potential sources of low cost abatement, and on key design features, such as auctions, baselines, and contract arrangements.

  • Repeal of Section 25-90 - The ATO is consulting with industry on what guidance may be needed to apply the law to financing arrangements for Australian multinational groups in the event Section 25-90 is repealed.

  • Debt and equity review - The Board of Taxation conducted consultation to review the current debt/equity rules in Division 974 of the ITAA 97.

  • Thin Capitalisation and arm’s length debt review - The Board of Taxation conducted consultation with various stakeholders to review the thin capitalisation / arm’s length debt test in Division 820 of the ITAA 97, and are exploring ways to make it easier to comply with and administer.

  • Foreign income tax offsets and application to superannuation funds - Technical issues arising from ATOID 2013/14 affecting the superannuation industry in practice is currently being consulted on.

  • Securitisation and thin capitalisation - The ATO withdrew draft TD 2012/D11 on Section 820-39 which would have adversely affected certain securitisation structures in the infrastructure and property industry. Part IVA issues are now being considered by the ATO.

Read an October 2013 report prepared by the KPMG member firm in Australia: Top 6 topical tax issues being consulted on right now

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


Share this

Share this


Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now