Australia’s parliament passed the Treasury Laws Amendment (Tax Incentives and Integrity) Act 2024 on 26 March 2025, which received Royal Assent on 27 March 2025.
This follows after Australia’s Senate Economics Legislation Committee has published its report on the Treasury Laws Amendment (Tax Incentives and Integrity) Bill 2024.
The Treasury Laws Amendment (Tax Incentives and Integrity) Bill 2024
The key provisions of this legislation are:
- Reduces the maximum fuel consumption for a car to qualify as fuel-efficient under the luxury car tax (LCT) to 3.5 litres/100 km (down from 7 litres/100 km) and aligns the indexation rates for luxury car tax thresholds;
- Amends Income Tax Assessment Act 1997 to remove income tax deductions for amounts of general interest charge (GIC) and shortfall interest charge (SIC) incurred in income years beginning on or after 1 July 2025;
- Amends the Taxation Administration Act 1953 to extend the time the Commissioner of Taxation has to notify a taxpayer about retaining a business activity statement (BAS) refund for verification from 14 to 30 days;
- Fully extends the instant asset write-off for small businesses to 30 June 2025.
