The Treasury on 31 March 2023 released for consultation an Exposure Draft Law and related Draft Explanatory material with respect to the Intangible Integrity Measure. The measure is part of the Multinational Tax Integrity Package announced in the 2022-23 Budget. It seeks to deny the tax deductibility of payments made directly or indirectly by an Australian significant global entity (SGE) to an associated person with respect to the exploitation of intangible assets, to the extent this results in the associated person or other person deriving income in a low-tax jurisdiction. The rules would apply from 1 July 2023.

Treasury had consulted on the combined package in August-September 2022, and is now seeking feedback on the separate components of the package individually.  Parallel to the consultation on the Intangible Integrity Measure, Treasury had also launched consultations on the proposed interest deduction limitation rules and subsidiary information rules. A consultation on the proposed public country-by-country (CbC) reporting requirement is expected to be launched soon.