End of Australia’s OBU regime: transition planning

As detailed by Natalie Raju and John Fulton, taxpayers with existing OBUs will need to prepare for the phase out of the OBU regime by developing an appropriate transition strategy.

Following enactment on 13 September 2021 of the Treasury Laws Amendment (2021 Measures No. 2) Act 2021, Australia’s offshore banking unit (OBU) regime is now formally closed to new entrants and the countdown has started for existing OBUs, which will be grandfathered only until the end of the 2022-23 income year. As discussed in our previous article, from the 2023-24 income year existing OBUs will no longer be able to access the OBU 10 percent tax rate, and interest payments will cease to be ...

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Authors: Natalie Raju, John Fulton

Published Date: 29 September 2021