The Government Is Giving Australian Banks A Break On Labor's Plans To Crack Down On Offshore Banking

The Coalition won’t go ahead with the former Labor government’s plans to crack down offshore entities which allow banks to lower their tax bills.

In the May budget Labor said it was making changes to the Offshore Banking Unit Regime first introduced by Paul Keating in 1986. The scheme was aimed at encouraging non-residents to use Australian banks for transactions.

According to the Australian Financial Review assistant treasure Arthur Sinodinos said at the weekend the Coalition would not be going ahead with the changes, which were slated to state on October 1.

Labor said the crackdown on the scheme — which provided a concessional 10% tax rate — would raise $320 million over four years.

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