The federal government says reports small business company tax cuts will inadvertently benefit investment vehicles held by rich families are premature.
News Corp newspapers reported an Australian Taxation Office ruling has potentially opened the floodgates for family investment companies to claim back hundreds of millions of dollars as a result of the company tax rate being reduced to 27.5 per cent for small firms.
Revenue and Financial Services Minister Kelly O'Dwyer clarified at this stage the ATO has only issued a draft ruling and will provide further guidance in due course.
"The policy decision made by the government to cut the tax rate for small companies was not meant to apply to passive investment companies," Ms O'Dwyer said in a statement on Tuesday.
"If any further direction is required on the government's policy intention by the ATO it will be provided."
