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Improving the Integrity of Stapled Structures

Key documents

On 27 March 2018, the Government announced a package of measures to address risks to the corporate tax base posed by stapled structures and similar arrangements and limit access to concessions currently available to foreign investors for passive income.

The Government has today released for public consultation the first stage of exposure draft legislation and explanatory material giving effect to the announced measures.

This exposure draft legislation includes the following measures:

  • taxing trading income that is converted to passive income at the corporate tax rate;
  • amending the thin capitalisation rules to prevent foreign investors from using multiple layers of flow-through entities (i.e. trusts and partnerships) to ‘double gear’ their investments to generate more favourably taxed interest income;
  • limiting the foreign pension fund withholding tax exemption for interest and dividends to portfolio investments only;
  • creating a legislative framework for the existing tax exemption for foreign governments (including sovereign wealth funds), and limiting the exemption to passive income from portfolio investments.

The exposure draft legislation also includes:

  • the concession for new, Government-approved nationally significant infrastructure assets; and
  • transitional arrangements for new and existing investments.

The consultation period closes onĀ 31 May 2018.

The Government invites interested parties to make a submission.


You can submit responses to this consultation up until 31 May 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:

Corporate and International Tax Division
The Treasury
Langton Crescent