Australia to Establish New Penalties Targeting Tax Avoidance

Australia will introduce new penalties to stamp out tax avoidance and improve compliance.

The government will introduce new laws to close gaps in the tax penalty regime, the Australian Tax Office announced as part of the government’s mid-fiscal year economic update Wednesday.

• Companies overclaiming refundable offsets will face a shortfall interest charge under a proposed tax offset credit scheme to support critical minerals and hydrogen production. An inquiry into the legislation introducing the production tax credits will report on Jan. 30, 2025.
• A shortfall interest is charged when the ATO finds more income tax is owed and applies to the ...