The Government has provided further support for capital investment by businesses and assistance with cash flows by extending the “temporary full expensing” measure as well as the loss carry-back offset for an additional income year. Important changes to the minimum threshold for the superannuation guarantee charge (SGC) have also been announced.

The Government has committed to the introduction of the Corporate Collective Investment Vehicles regime (CCIVs) regime, with a revised start date. There has also been a number of minor technical changes announced to the Taxation of Financial Arrangement (TOFA) rules relating to portfolio hedging and foreign currency.

The Government has announced a significant change to Australia’s individual tax residency rules, as well as some other cross-border proposals of note.

Superannuation changes announced in the Budget are beneficial in nature and mainly target increasing flexibility and contribution opportunities for individuals over age 60.

The Government has proposed improvements to the tax and regulatory regime applying to employee share schemes (ESS). These measures are designed to make ESS arrangements more attractive and accessible to businesses when seeking to attract and retain talent.

The Government outlined a number of significant measures in the Budget as part of a Digital Economy Strategy. As a part of that strategy, three tax incentives were announced, all proposing to reduce the overall tax paid by businesses conducting certain digital activities and investing in the development of intangible assets.