The Australian Treasury has significantly revised its revenue projections for new capital gains tax legislation targeting foreign investors in renewable energy, doubling the expected take to $2.3 billion.
The updated forecast, reported by the Australian Financial Review, indicates the government anticipates collecting more than $1 billion above its original estimates from the expanded tax base.
The policy shift marks a sharp increase in the fiscal burden on overseas capital flowing into Australia’s clean energy sector.
Investor groups have cautioned that the revised tax regime will place Australian renewable projects at a competitive disadvantage compared to other advanced economies, potentially slowing the pace of infrastructure development.
The Treasury’s upward revision suggests the government expects the new rules to capture a broader range of transactions or higher valuations than initially modeled.
This development arrives as global markets navigate shifting policy landscapes for green energy investment.