The Federal Government is seeking to unlock billions of dollars in capital for nation building infrastructure through tax incentives for projects worth more than $500 million.
To achieve this, the government has released a draft guidance note for the implementation of the new economic infrastructure staples tax concession (the concession) for consultation.
Treasurer Josh Frydenberg said the concession will allow the treasurer to approve applications for a 15 per cent concessional withholding tax rate for economic infrastructure projects, instead of the 30 per cent that would otherwise apply.
“To qualify, these major projects must have an estimated capital expenditure of $500 million or more and cover a diverse range of economic infrastructure projects in the areas of transport, energy, communications and water,” Mr. Frydenberg said.
“The application of this tax rate will apply to projects that are in the national interest and significantly enhance the long term productive capacity of the economy.”
According to Mr. Frydenberg, the tax incentive will support the development of nationally significant infrastructure, while protecting the integrity of Australia’s corporate tax system.
“By investing in Australia’s infrastructure we will bust congestion, get goods to market more efficiently and effectively and ensure Australians get home sooner and safer, no matter where they live,” Mr. Frydenberg said.
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