Australian bill would deny lower tax rate to passive investment companies

The Australian government has introduced a bill providing that passive investment companies will not qualify for the new lower corporate income tax rate for smaller companies.

Under the bill, the tax rate for such firms would remain at 30 percent of income rather than the new 27.5 percent rate for smaller firms.

The bill defines passive investment companies as those companies that have passive income for a income year that equals 80 percent or more of assessable income.

Comments on the proposal are requested by September 29.