Tax Integrity - expanding the general anti-avoidance rule in the income tax law

The Government will improve the integrity of the tax system by expanding the scope of the general anti-avoidance rule for income tax (Part IVA of the Income Tax Assessment Act 1936) so that it can apply to:

* schemes that reduce tax paid in Australia by accessing a lower withholding tax rate on income paid to foreign residents

* schemes that achieve an Australian income tax benefit, even where the dominant purpose was to reduce foreign income tax. This measure will apply to income years commencing on or after 1 July 2024, regardless of whether the scheme was entered into before that date. This measure is estimated to result in an unquantifiable increase in receipts over the 5 years from 2022-23.