✦ Plain-English Summary

Treasury Laws Amendment (International Tax Agreements) 2019

What it does

This bill updates Australia's tax laws to enforce a new tax treaty with Israel and introduces clearer rules about where income is considered to originate for tax purposes. The changes make it easier for tax authorities to apply international tax agreements consistently.

Why it matters

The Israel tax treaty reduces double taxation (where people or companies get taxed twice on the same income in both countries), which can make doing business between Australia and Israel simpler and fairer. The source rules help the ATO and taxpayers understand which country gets to tax specific income when international tax agreements apply.

Key details

• Israeli tax treaty: Comes into effect immediately after the bill receives royal assent. It covers income tax and aims to prevent tax evasion between the two countries.
• Source rules: These take effect on the first quarter-end date (1 Jan, 1 Apr, 1 Jul, or 1 Oct) after royal assent. They establish when income is considered Australian-sourced for international tax agreement purposes.
• Who's affected: Mainly businesses and individuals earning income across Australia and Israel, plus anyone with international income covered by other tax treaties that use similar rules.

Official Description

Amends the International Tax Agreements Act 1953 to: give legislative authority to the Convention between the Government of Australia and the Government of the State of Israel for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance; and correct an incorrect cross reference to the specific source rule that applies in relation to an earlier agreement with Germany; and Income Tax Assessment Act 1997 to introduce a deemed source of income rule to ensure that Australia can exercise its taxing rights under the convention and future international tax agreements.

Committee Referrals

Parliamentary Joint Committee on Human Rights

No formal division recorded

This bill passed by voice vote — parliament agreed without calling a formal count. A division is only recorded when a member explicitly requests one.

No votes yet.

No votes were recorded for this bill.