The Australian Parliament recently passed legislation to introduce two significant tax incentives aimed at bolstering Australia’s critical minerals and hydrogen production sectors. The incentives form a significant part of the Government’s ’Future Made in Australia‘ policy.

The ATO has amended PCG 2018/9 to extend the corporate tax residency transitional period until 30 June 2023 to allow taxpayers to change their governance arrangements with respect to central management and control of foreign incorporated subsidiaries. The ATO has stated that the transitional period will not be extended again.

The ATO has recently released findings from its Next 5,000 reviews to date. The program is conducted by the ATO via its Streamlined Assurance Reviews (“SAR”). This framework generally involves a review of the group’s tax returns for the two most recent years lodged, and is focused on entities within the group with significant activities or transactions.