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Treasury Laws Amendment (2024 Tax and Other Measures No. 1)

Current status

This bill became law on Dec 10th, 2024.

Policy area

Budget, tax & economy

What does this bill do?

Property buyers must withhold 15 per cent, up from 12.5 per cent, when foreign residents sell relevant Australian capital gains taxTax on profit made when an asset is sold for more than it cost, which is why the page focuses on foreign residents selling Australian property and related assets. assets.

Why was it introduced?

Current tax rules left gaps and delays: foreign resident asset sales could avoid stronger withholding, employers repeated payroll declarations, small and medium businesses faced a short amendment window, and the ATOThe government office that collects tax and receives withheld amounts under this bill. could send cheque refunds without bank details. The bill tightens withholding, lets one declaration cover multiple lodgements, expands amendment time to four years, and requires bank details before some refunds are paid.

Broader context

A foreign resident capital gains withholding regime had operated since 2016 as a tax integrity measure, but it only applied a 12.5 per cent withholding rate above a $750,000 threshold and other tax administration rules still left repeated payroll declarations, a shorter amendment window for small and medium businesses, and cheque refunds being issued without bank details. The bill introduced in September 2024 responded by lifting the withholding rate to 15 per cent, removing the threshold and simplifying several tax administration rules, before Parliament passed it in November and Royal AssentThe formal step that turns a passed bill into law. turned it into law in December 2024.

Key criticism

The main criticism was that parts of the bill added unnecessary red tape, especially by making foreign resident withholding rules more cumbersome and by initially imposing poorly consulted compliance demands on tax practitioners and small businesses. These concerns were raised mainly by Coalition speakers, but the Coalition still backed the bill overall while one Nationals speaker argued the handling showed the measures were badly designed.

Who supported it?

Stephen Jones MP introduced this bill. It passed on the voices.

Introduced in House 12 Sept 2024
Passed House 10 Oct 2024
Passed Senate 28 Nov 2024
Became law 10 Dec 2024

Did it become law?

Yes

Became law 10 Dec 2024

Final passage

Passed without a counted vote

1 recorded amendment or procedural vote was found, but no counted vote on the bill itself was recorded.

Passage speed

89 days

From introduction to the latest recorded parliamentary step

Official record

View on APH

Parliament of Australia bill page

Meaning

What does this bill do?

  1. Property buyers must withhold 15 per cent, up from 12.5 per cent, when foreign residents sell relevant Australian capital gains taxTax on profit made when an asset is sold for more than it cost, which is why the page focuses on foreign residents selling Australian property and related assets. assets.

  2. Sales of relevant Australian capital gains taxTax on profit made when an asset is sold for more than it cost, which is why the page focuses on foreign residents selling Australian property and related assets. assets by foreign residents will face this withholding rule no matter how low the property or asset value is.

  3. Employers can give a registered tax or BAS agentA licensed tax professional who can prepare and lodge tax or BAS reports on behalf of a business. one written payroll reporting declaration that covers multiple lodgements for up to 12 months.

  4. Small and medium businesses get up to four years to ask the Australian Taxation OfficeThe government office that collects tax and receives withheld amounts under this bill. to amend an assessmentThe ATO's calculation of how much tax a person or business owes after looking at their return or other information., instead of being limited to the shorter earlier window.

  5. The Australian Taxation OfficeThe government office that collects tax and receives withheld amounts under this bill. can hold back some tax refunds until people provide valid Australian bank account details, instead of sending refunds straight away by cheque.

Show source excerpts
  1. If a FRCGW obligation arises, the purchaser will be required to withhold from the vendor 15 per cent of the first element of the cost base of the CGT asset that they acquired and pay that amount to the Commissioner.
    Treasury Laws Amendment (2024 Tax and Other Measures No. 1) explanatory memorandum
  2. Consequently, a FRCGW obligation will arise in relation to the disposal of a relevant CGT asset by a foreign resident, regardless of the market value of the CGT asset. Other transactions that are currently excluded from the FRCGW regime remain unamended and continue to apply. The Commissioner’s power to vary particular amounts, or classes of amounts, of withholding by a purchaser under the FRCGW regime also continues to apply.
    Treasury Laws Amendment (2024 Tax and Other Measures No. 1) explanatory memorandum
  3. In relation to reports given under Division 389 in Schedule 1 to the TAA 1953 (STP), an employer may make a standing declaration of accuracy and authority covering multiple lodgements. A standing declaration can cover multiple lodgements for a period of up to 12 months, or until the declaration is withdrawn by the employer; or if a material change occurs in the relationship between the employer and the agent, or in the affairs of the entity since the declaration was made. [Schedule 2, item 5, subsection 389-35 in Schedule 1 to the TAA 1953]
    Treasury Laws Amendment (2024 Tax and Other Measures No. 1) explanatory memorandum
  4. the request is given to the Commissioner within four years after the day on which the Commissioner gave notice of the assessment to the taxpayer.
    Treasury Laws Amendment (2024 Tax and Other Measures No. 1) explanatory memorandum
  5. The section requires the Commissioner to issue affected refunds to an entity by crediting their Australian financial institution account if the account details have been provided in the approved form by the entity. Should the entity fail to specify an Australian financial institution account for the purposes of receiving a refund, the Commissioner is not under an obligation to refund any amount to the entity until the entity has nominated a financial institution account.
    Treasury Laws Amendment (2024 Tax and Other Measures No. 1) explanatory memorandum

Context

Broader context for this bill

A foreign resident capital gains withholding regime had operated since 2016 as a tax integrity measure, but it only applied a 12.5 per cent withholding rate above a $750,000 threshold and other tax administration rules still left repeated payroll declarations, a shorter amendment window for small and medium businesses, and cheque refunds being issued without bank details. The bill introduced in September 2024 responded by lifting the withholding rate to 15 per cent, removing the threshold and simplifying several tax administration rules, before Parliament passed it in November and Royal AssentThe formal step that turns a passed bill into law. turned it into law in December 2024.

  1. 2016

    Foreign resident capital gains withholding starts with a $750,000 threshold

    The existing regime began as an integrity measure requiring 12.5 per cent withholding on certain foreign resident asset sales above $750,000.

    Hansard ↗
  2. 12 Sept 2024

    Government introduces a bill to tighten withholding and simplify tax administration

    The Assistant Treasurer presented the bill as a package to make the tax system simpler and fairer, including stronger foreign resident withholding rules and reduced administrative friction in payroll reporting, amendments and refunds.

    Hansard ↗
  3. 10 Oct 2024

    House passes the bill

    The House agreed to the bill at third reading, sending the proposed tax and administration changes to the Senate.

    Parliamentary timeline ↗
  4. 28 Nov 2024

    Parliament passes the bill

    Both houses passed the bill in the same form, completing its parliamentary passage.

    Parliamentary timeline ↗
  5. 10 Dec 2024

    Royal AssentThe formal step that turns a passed bill into law. makes the changes law

    Royal AssentThe formal step that turns a passed bill into law. turned the bill into an Act, locking in the higher withholding rate and the related tax administration changes.

    Parliamentary timeline ↗

Legislative route

How did it move through Parliament?

House Senate
Introduced 12 Sept 2024

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 12 Sept 2024

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Economics Legislation Committee; Committee report (24/10/2024) review 19 Sept 2024

Referred to Committee (19/09/2024): Senate Economics Legislation Committee; Committee report (24/10/2024)

Referred to committee

APH bill page notes
Second reading debate 08 Oct 2024

The bill reached this recorded parliamentary step.

Sent to Federation Chamber for debate 08 Oct 2024

The bill reached this recorded parliamentary step.

Referred to Federation Chamber

Second reading debate 09 Oct 2024

The bill reached this recorded parliamentary step.

Returned from Federation Chamber 10 Oct 2024

The bill reached this recorded parliamentary step.

Reported from Federation Chamber

House second reading agreed 10 Oct 2024

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Consideration in detail 10 Oct 2024

The chamber considered the bill in detail and dealt with amendments before the next stage.

Consideration in detail debate

House third reading agreed 10 Oct 2024

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 18 Nov 2024

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second reading opened 18 Nov 2024

A minister or sponsoring member moved the second reading, opening the main debate on the bill's purpose and principles.

Second reading moved

Senate second reading agreed 28 Nov 2024

The chamber agreed to the bill at second reading, meaning it accepted the bill in principle and allowed it to continue.

Second reading agreed to

Senate third reading agreed 28 Nov 2024

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Passed both houses 28 Nov 2024

Both houses passed the bill in the same form, completing parliamentary passage.

Finally passed both Houses

Assent 10 Dec 2024

The Governor-General gave Royal AssentThe formal step that turns a passed bill into law., turning the bill into an Act.

Key criticism

The main case against this bill

The main criticism was that parts of the bill added unnecessary red tape, especially by making foreign resident withholding rules more cumbersome and by initially imposing poorly consulted compliance demands on tax practitioners and small businesses. These concerns were raised mainly by Coalition speakers, but the Coalition still backed the bill overall while one Nationals speaker argued the handling showed the measures were badly designed.

Criticism focused more on drafting and implementation burdens than on the bill's core policy aims.

Extra compliance and red tape

Critics argued the bill made tax compliance more cumbersome, particularly through stricter foreign resident withholding rules and added administrative burden for businesses and advisers.

Raised by Coalition speakers including Luke Howarth Source ↗

Rushed consultation and burden on practitioners

The sharpest objection was that the government handled related compliance changes poorly, leaving tax practitioners and small regional firms facing rushed obligations before backing down under pressure.

Raised by Michael McCormack Source ↗

Further sources

parlinfo.aph.gov.au ↗ parlinfo.aph.gov.au ↗

Votes

Recorded votes

How the bill itself passed

The bill passed both chambers on the voices. The counted divisions below were about amendments or procedure, not final passage.

Passed

House passed the bill

House agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

10 Oct 2024

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Passed

Senate passed the bill

Senate agreed to the bill's third reading on the voices, so there is no list of individual Aye and No votes for final passage in that chamber.

28 Nov 2024

Passed on the voices

In a voice vote, members call out Aye or No and the presiding officer judges which side has it. Individual names are only recorded if a formal division is called.

Amendments at a glance

Recorded amendment and procedural votes grouped by chamber. Expand a vote to see the party breakdown.

House

Defeated

Call for small business tax reform

Aye 57 No 79

Defeated 57 to 79. Support came from Liberal Party, Nationals, and Centre Alliance. Opposition came from Labor and Greens. Minor-party and independent votes were split.

10 Oct 2024

The amendment was defeated, so the bill’s second reading was agreed to without the added opposition statement.

Party Recorded votes Aye / No
Labor 0 / 66
Unknown 21 / 10
Liberal Party 19 / 0
Nationals 11 / 0
Independent 5 / 1
Greens 0 / 2
Centre Alliance 1 / 0

These are amendment votes, not the final passage vote on the bill itself. The bill passed both chambers on the voices.

Parliamentary debate

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Stephen Jones

Australian Labor Party • MP 12 Sept 2024

Stephen Jones समर्थित the bill, saying it makes the tax system simpler and fairer by improving integrity and cutting red tape for businesses.

Read in Hansard ↗
Lead opposing voice Opposes

Michael McCormack

National Party • MP 09 Oct 2024

McCormack opposes the bill, arguing that Labor is using tax changes to add red tape and impose rushed, poorly consulted obligations on tax practitioners and small regional firms.

Read in Hansard ↗
Lead supporting voice Supports

Luke Howarth

Liberal Party • MP 08 Oct 2024

Howarth says the coalition will back the bill, because it contains some useful small-business and tax administration changes, but he argues the government has been too slow and has failed to deliver proper tax reform.

Read in Hansard ↗
Lead voice Supports

Max Chandler-Mather

Australian Greens • MP 09 Oct 2024

Chandler-Mather says the Greens support the bill in the House, especially the schedule making foreign residents pay their capital gains taxTax on profit made when an asset is sold for more than it cost, which is why the page focuses on foreign residents selling Australian property and related assets. on Australian property sales.

Read in Hansard ↗

All speeches by bloc

Labor

1 speaker · 1 support

  1. Stephen Jones ★ Stephen Jones समर्थित the bill, saying it makes the tax system simpler and fairer by improving integrity and cutting red tape for businesses.
    “The changes in this bill are sensible changes to improve the integrity of our tax system, cut red tape and make our tax system more accessible for Australian businesses.”

    Australian Labor Party • MP • 12 Sept 2024

    Read the full speech in Hansard ↗

Coalition

2 speakers · 1 support · 1 oppose

  1. Luke Howarth ★ Howarth says the coalition will back the bill, because it contains some useful small-business and tax administration changes, but he argues the government has been too slow and has failed to deliver proper tax reform.
    “I'm glad that schedule 2 has one small, very minor adjustment that might help accountants after everything they've been dealt with by the Albanese government. There are minor issues with schedule 3. Schedule 3 allows small and medium businesses to self-amend their tax assessments up to four years, extending the current two-year limit. That sounds sensible. This is a sensible and welcome reform which will reduce the volume of objections lodged with the ATO.”

    Liberal Party • MP • 08 Oct 2024

    Read the full speech in Hansard ↗
  2. Michael McCormack ★ McCormack opposes the bill, arguing that Labor is using tax changes to add red tape and impose rushed, poorly consulted obligations on tax practitioners and small regional firms.
    “Whilst the Albanese Labor government will tell you that this bill, the Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Bill 2024, will help reduce red tape, there are many of us who suspect or know otherwise. We cannot forget the hypocrisy that Labor has shown when it comes to all things tax.”

    National Party • MP • 09 Oct 2024

    Read the full speech in Hansard ↗

Greens

1 speaker · 1 support

  1. Max Chandler-Mather ★ Chandler-Mather says the Greens support the bill in the House, especially the schedule making foreign residents pay their capital gains taxTax on profit made when an asset is sold for more than it cost, which is why the page focuses on foreign residents selling Australian property and related assets. on Australian property sales.
    “The Greens support this bill in the House but reserve our position for the bill in the Senate. I would like to speak to a particular schedule of the bill which ensures foreign residents selling property in Australia don't dodge their capital gains tax obligations. While we support this, we would like to note that the second reading speech of the minister, Stephen Jones, indicated:”

    Australian Greens • MP • 09 Oct 2024

    Read the full speech in Hansard ↗

Record

Full record

Full chat