Australia: Tax announcements in government's 2023-2024 mid-year economic and fiscal outlook statement

Limited number of new tax-related announcements

Government's 2023-2024 mid-year economic and fiscal outlook statement

The government’s 2023-2024 mid-year economic and fiscal outlook statement included a limited number of new tax-related announcements:

  • Deductions for Australian Taxation Office (ATO) charges, specifically general interest charge and shortfall interest charge, incurred in income years started on or after 1 July 2025 generally will be denied.
  • The foreign resident capital gains withholding tax rate will increase to 15% (from 12.5%), and the withholding threshold will be reduced to zero (from $750,000), for real property disposals with contracts entered into from 1 January 2025.
  • The definition of fuel-efficient vehicles will be tightened by reducing the maximum fuel consumption to 3.5 litres (from 7 litres) per 100km, and the indexation rate for the luxury car tax value threshold for all other luxury vehicles will be updated from 1 July 2025.
  • The Commonwealth penalty unit will increase in value to $330 (from $313), commencing four weeks after passage of legislation, which will increase the maximum failure to lodge penalty for significant global entities to $825,000* (from $782,000).

Previously announced changes to the 2022–2023 October budget multinational tax integrity package were also noted in the statement:

  • Amendments to the proposal to deny deductions for payments relating to intangibles held in low-or no-tax jurisdictions would better target the measure (no further detail was provided).
  • The state date for public country-by-country reporting would be deferred from 1 July 2023 to 1 July 2024, with further consultation on specific parameters, including the appropriate level of disaggregated reporting. Read TaxNewsFlash

*$=Australian dollar



The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained 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. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.