The Government is proceeding with an amendment to the law to exempt wholly‑owned Australian incorporated subsidiaries of the Future Fund Board of Guardians (Future Fund Board) from corporate income tax.
Currently, the Future Fund Board is exempt from income taxes, but this exemption does not extend to its wholly‑owned subsidiaries. As a result, these subsidiaries pay corporate income tax, which is subsequently refunded to the Future Fund Board via franking credits attached to the dividends paid to it by the subsidiaries.
Extending this exemption will remove the administrative burden associated with the payment of tax by the subsidiaries and subsequent claiming of a refund.
The Government is seeking comments on exposure draft legislation and explanatory material.
This measure was initially announced in the 2022‑23 March Budget and is estimated to have no impact on receipts over the forward estimates period.