Improving the integrity of off-market share buy-backs

This consultation process has now been completed. Submissions available
Date
-
Consultation Type
Draft Amendments

Key Documents

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.

Submissions

297 submissions were received for this consultation, including 4 confidential submissions.

Submissions

16 submissions were received for this consultation, including 4 confidential submissions.