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Australia: Draft legislation on small business tax obligations, foreign residents’ capital gains withholding passes lower house of Parliament

Draft legislation would increase the withholding rate on foreign residents’ capital gains from 12.5% to 15%

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October 11, 2024

Draft legislation to reduce tax obligations for small businesses and increase withholding on foreign residents’ capital gains passed the House of Representatives.

The Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Bill 2024 would:

  • Extend the time in which small or medium business taxpayers may apply to have a tax assessment amended
  • Allow employers to make single touch payroll declarations for extended periods
  • Increase the withholding rate on foreign residents’ capital gains from 12.5% to 15% and remove the threshold before which withholding applies
  • Provide the Commissioner of Taxation with a power to retain tax refunds for a 90-day period to enable the Commissioner to obtain financial institution details for the refund to be paid into

Provisions of the bill are still under inquiry by the Senate Economics Legislation Committee with a report due by October 24, 2024.

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