Australian bill excludes passive investment companies from lower tax rate

The Australian government today introduced legislation clarifying that passive investment companies will not qualify for the lower 27.6 percent company tax rate.

Under the bill, a company will not qualify for the lower company tax rate if more than 80 percent of its income is passive, such as income from interest, dividends, or royalties.

“This bill will provide certainty about eligibility for the lower company tax rate, by excluding passive investment companies,” Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, said.