The Australian government released its budget for 2013 on May 2013. It includes plans for a number of revenue / tax expenditure changes including measures to combat profit shifting.
According to the budget, business entities will be eligible for R&D tax incentives from 1 July, 2013 if they have an annual aggregate Australian income of less than AUD 20 billion and business entities will be eligible to claim the R&D refundable tax offset quarterly if they have an aggregated annual turnover of less than AUD 29 million. All large business entities will be able to apply for the monthly Pay as you Go (PAYG) installment tax payment system. Gradually from 1 January 2014 through 1January 2017, these new rules will also be applicable to non-corporate entities.
From 1 July 2014, the medical levy will be increased from 1.5% to 2.0%. The Baby Bonus payment under social security regime will be removed from 1 July 2014. Changes are also being made to some other social security payments.
