On 17 May the Government released exposure draft legislation and explanatory materials on the tax treatment of stapled structures, putting into place targeted integrity rules designed to neutralise the tax benefits of stapled structures. 

The Treasurer, the Hon Scott Morrison, stated that an increasing number of foreign investors have sought to convert trading income into a more favourably taxed passive income through the use of stapled structures, and that the reforms are intended to ensure foreign investors do not have a competitive advantage over Australian investors. 

Responses are due by 31 May.