In media release No 2013/1, issued 29 September 2013, the Assistant Treasurer, Senator Arthur Sinodinos, announced that the Government would not proceed with the start date of 1 October 2013 for the reforms to the Offshore Banking Unit regime that were originally announced in the 2013-2014 Budget.
The offshore banking unit regime provides a concessional 10% tax rate to encourage genuine offshore banking activity in Australia.
"This step is necessary in order to give business the certainty that it needs to comply with the tax laws" the Assistant Treasurer said.
"Consultation on this measure has indicated that the reforms as announced could affect commercial transactions that should still be eligible for offshore banking unit treatment."
"We will ensure that an announcement on the content of the measure is made in a timely way, including a potential commencement date, so that business can make any necessary adjustments."
"The Government will take the time necessary to properly consider all the issues, including the views of business."