Australia: Tax

The Australian Federal Budget for 2026-2027 introduces sweeping reforms to the tax system, including a controversial 30% minimum tax on discretionary trusts, abolition of the 50% CGT discount in favor of cost base ...

The Australian Government has released draft legislation proposing significant and retrospective changes to foreign resident capital gains tax rules, dramatically expanding what constitutes taxable Australian real property. These changes will apply to past transactions dating back to 2006, existing investments, and future deals, with only limited transitional relief for renewable energy assets until 2030.

The recent judgment by the Australian High Court in the PepsiCo case has sparked significant interest in international tax circles. At the core of the debate: can a fee for the purchase of goods include...

The 2026 federal Budget introduced significant changes to capital gains tax, negative gearing, and discretionary family trusts that may impact your estate planning strategy.

In this edition of It depends, partners Scott Hay-Bartlem and Clinton Jackson bring the latest updates on the government's proposed tax on large super balances, including the introduction of indexation.

Much has been written about the ever approaching "unprecedented" intergenerational wealth transfer, in which between AU$3.5 trillion and Au$5.4 trillion in assets is expected to pass from the Baby Boomers to their heirs.

Australia's Division 296 introduces a new tax framework targeting superannuation balances exceeding AUD 3 million, imposing additional levies of 15% for large balance holders and 25% for very large balance holders. The legislation includes provisions for cost base resets and creates significant compliance challenges for self-managed superannuation funds.

Partners Scott Hay-Bartlem and Linda Tapiolas break down the 2026 federal Budget's proposed changes to discretionary trusts, examining new tax rates, beneficiary credits, and exemptions. As legislation continues to evolve, they explore the complexities of restructuring trust and company arrangements and explain why businesses should adopt a cautious approach to these significant reforms.

On 12 May 2026, Treasurer Jim Chalmers handed down what he described as “the most important and ambitious Budget in decades”. The backdrop was demanding: a global oil shock driven by conflict in the Middle East, headline inflation forecast to reach 5% by mid-2026, and sustained cost-of-living pressure on households and businesses.

US technology, pharma, and life science companies establishing Australian subsidiaries to access R&D tax incentives face complex international tax challenges. When intercompany agreements are drafted without proper coordination between US transfer pricing rules and Australian R&D Tax Incentive requirements, companies risk significant IRS exposure including platform contribution payment obligations, cost reallocations, and penalties that can exceed the intended tax benefits.

Update on key developments in taxation law for accountants and participants in the tax advice industry up to mid-May.

Key developments in taxation law for accountants and participants in the tax advice industry up to mid-late April.