The forward tax agenda

Federal Budget Tax | Analysis and insights

In this section of our 2023-24 Federal Budget tax analysis, we outline the forward agenda for tax measures yet to be enacted and the status of any announced but unenacted measures from the previous Government which have now been clarified.

At the outset, we note that all of the Government’s tax-related election commitments in relation to electric vehicles have been enacted. This includes the measures to:

exempt from Fringe Benefits Tax (FBT) certain zero or low emissions vehicles, and
remove customs duty for the importation of such vehicles.

Measures currently progressing

Measure	Status
Business and investment
Introduction of a Digital Games Tax Offset	Currently before Parliament in Treasury Laws Amendment (2022 Measures No. 4) Bill 2022
Small business skills and training boost	Currently before Parliament in Treasury Laws Amendment (2022 Measures No. 4) Bill 2022
Small business technology investment boost	Currently before Parliament in Treasury Laws Amendment (2022 Measures No. 4) Bill 2022
Reduced record keeping for certain fringe benefits	Currently before Parliament in Treasury Laws Amendment (2022 Measures No. 4) Bill 2022
Aligning the tax treatment of off-market share buy-backs undertaken by listed public companies with on-market share buy-backs (refer to our Tax Alert for more information)	Currently before Parliament in Treasury Laws Amendment (2023 Measures No. 1) Bill 2023
Changes to limit franked distributions funded by certain capital raisings (refer to our Tax Alert for more information)	Currently before Parliament in Treasury Laws Amendment (2023 Measures No. 1) Bill 2023
Global tax
New interest limitation rules (refer to our Tax Alert for more information)	Public consultation on these measures concluded on 13 April 2023.
Denying deductions for payments relating to intangible assets connected with low corporate tax jurisdictions (refer to our Tax Alert for more information)	Public consultation on these measures concluded on 28 April 2023.
Public disclosure of subsidiary information including tax domicile (refer to our Tax Alert for more information)	Public consultation on these measures concluded on 13 April 2023.
Public Country by Country reporting (refer to our Tax Alert for more information)	Public consultation on these measures concluded on 28 April 2023.
Implementing the new Australia and Iceland double tax agreement	Currently before Parliament in Treasury Laws Amendment (Refining and Improving Our Tax System) Bill 2023
Expansion of Australia’s tax treaty network	Public consultation concluded on 23 December 2022
Personal tax and superannuation
Better targeted superannuation concessions (refer to Personal and superannuation for further details)	Public consultation concluded on 17 April 2023
Legislating the objective of superannuation	Public consultation concluded on 31 March 2023
Non-arm’s length expense rules for superannuation funds (refer to Personal and superannuation for further details)	Public consultation concluded on 21 February 2023
Other measures
Clarification that digital currency is not foreign currency	Currently before Parliament in Treasury Laws Amendment (2022 Measures No. 4) Bill 2022
Implementing the Government response to review of the Tax Practitioners Board	Currently before Parliament in Treasury Laws Amendment (2023 Measures No. 1) Bill 2023
Administration reforms to align excise and customs reporting with other indirect taxes	Currently before Parliament in Treasury Laws Amendment (Refining and Improving Our Tax System) Bill 2023

Measures announced by the previous Government

The Government announced that it will not proceed with the three separate patent box measures announced by the former Government in the 2021-22 and 2022-23 March Budgets. The original proposal would have provided concessional tax treatment for income derived from exploiting Australian medical and biotechnology innovation, agricultural sector innovation and low emissions technology innovation patents.

Deferred start dates were also announced for the following measures:

some components of the 2022-23 March Budget measures relating to streamlining excise administration for fuel and alcohol to be deferred from 1 July 2023 to 1 July 2024, and
the measure announced in the 2022–23 March Budget to amend the tax treatment of biodiversity certificates to be deferred from 1 July 2022 to 1 July 2024.

There are several tax measures announced by the former Government that are outstanding with no indication of whether the current Government intends to proceed with them, including the previously announced changes to the tax residency rules for individuals and companies, and reforms to Division 7A (relating to private company deemed dividends).