Australia: Corporate Tax

Australia's foreign resident capital gains tax regime is undergoing its most significant expansion since 2006, with new rules commencing October 2026 that will fundamentally reshape how M&A transactions involving land-connected assets are structured and executed. The changes introduce a 365-day look-back test for determining whether shares or units constitute indirect Australian real property interests, broaden the definition of taxable Australian real property to capture energy, infrastructure and data-cen

Directors using credit cards to pay company tax debts may be unknowingly converting corporate liabilities into personal obligations. What appears to be a simple cash flow solution with bonus reward points could expose directors to significant personal financial risk if the company later becomes insolvent.

Tasmania's new taxation bill introduces significant changes for foreign investors and corporate groups, including reduced thresholds for surcharge relief and streamlined restructuring exemptions. The amendments lower the dwelling requirement from 50 to 10 units for foreign investor duty relief and eliminate pre- and post-transaction association requirements for corporate reconstructions.

The Federal Government’s proposed changes to the taxation of discretionary trusts may create one of the most significant small business restructuring opportunities seen in years. Assuming, of course, the legislation survives the usual process of political compromise and lobbying.

Australia's 2026-27 Budget introduces sweeping changes to capital gains tax, negative gearing, and discretionary trust taxation, fundamentally reshaping decades of established tax policy. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 has now received Royal Assent, but significant controversy surrounds key provisions including the new 30% minimum tax on discretionary trusts and restrictions on corporate beneficiaries. How will these reforms affect existing trust structures, investment strategies, a

The Federal Court of Australia has clarified the operation of section 707-145 of the Income Tax Assessment Act 1997, determining that a head company's choice to cancel the transfer of tax losses must be made in relation to the joining year. The judgment in Evolution Mining Limited v Commissioner of Taxation provides critical guidance on the timing requirements for cancelling automatic loss transfers in consolidated groups, confirming that choices made in later income years are ineffective.

The 2026 Federal Budget introduces a fundamental shift in Australia's tax treatment of pre-CGT assets, ending decades of tax-free capital growth from 1 July 2027. This change, combined with broader property tax reforms including the removal of negative gearing on existing properties and the 50% CGT discount...

Acquiring an Australian business involves more than just agreeing on a purchase price. Historical tax exposures lurking beneath financial statements can significantly erode deal value if left unexamined. Understanding the hidden risks of open audit windows, substantiation requirements, and capital gains tax obligations is crucial for protecting your investment and ensuring the true economic reality of your acquisition.

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