As part of the 2022-23 Budget, an integrity measure was announced to align the tax treatment of off-market share buy-backs undertaken by listed public companies with the tax treatment of on-market share buy-backs.
This measure also includes commensurate amendments to the tax treatment of selective share cancellations for listed public companies.
The Government has prepared exposure draft legislation giving effect to this measure, which will ensure that where a listed public company undertakes an off-market share buy-back of a share or non-share equity interest, no part of the purchase price in response of the buy-back will be taken to be a dividend.
Additionally, distributions by listed public company that are considered consideration for the cancellation of a membership interest as part of a selective reduction of capital will now be unfrankable.
The Government is seeking stakeholders’ views on the exposure draft legislation and accompanying explanatory material implementing this measure.
You can submit responses to this consultation up until 09 December 2022. 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.
View our submission guidelines for further information.
How To Respond
Address written submissions to:
Corporate Tax Policy Unit
Corporate and International Tax Division
Parkes ACT 2600