Despite pre-budget speculation, there were no changes to the thin capitalisation rules announced.
In addition to the array of superannuation changes key announcements for financial services include:
- reduction in corporate tax rate – a complex mechanism to reduce the corporate tax rate for all companies to 25 percent by the 2026-27 income year
- Diverted Profits Tax – to be added to the existing MAAL measure with effect from 1 July 2017 to complete a package of anti-avoidance provisions applying to significant global entities
- Tax Integrity Package – from 1 July 2017 administrative penalties for significant global entities who fail to meet disclosure obligations will be increased
- Anti-hybrid rules – implementation of the OECD BEPS Action 2: Anti-hybrid Rules
- TOFA simplification proposals and
- consolidation changes further modified.