Skip to content

Implementing the OECD Hybrid Mismatch Rules

Key documents

The Government announced in the 2016-17 and 2017-18 Budgets that it would implement the Organisation for Economic Co operation and Development’s (OECD) rules aimed at eliminating double non-taxation benefits from hybrid mismatch arrangements which exploit differences in the tax treatment of an entity or instrument under the laws of two or more tax jurisdictions.

On the 24 November 2017 the Government released exposure draft legislation and explanatory memorandum for public consultation.

On the same date the Treasurer announced that the Government would adopt the OECD’s recommendations to address branch mismatch arrangements and would develop a targeted integrity rule to address arrangements used to circumvent the hybrid mismatch rules.

The Government is seeking the community’s views on revised exposure draft legislation that incorporates the previously released exposure draft legislation as well as rules to address branch mismatch arrangements and to introduce the announced integrity rule.

The revised draft legislation will apply broadly to related parties, members of a control group and structured arrangements and is designed to neutralise any hybrid double non-taxation benefits by either denying deductions or including amounts in assessable income.


You can submit responses to this consultation up until 4 April 2018.

Interested parties are invited to comment on this consultation.

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

How to respond


Address written submissions to:

The Manager
Base Erosion and Profit Shifting Unit
Corporate and International Tax Division
The Treasury
Langton Crescent
Parkes ACT 2600

Enquiries Potts +61 2 6263 3323