The Evolution of Australia’s GAAR: From Peabody to PepsiCo

This article examines the evolution of Australia’s GAAR under Part IVA of the ITAA 1936, tracing legislative reforms, key judicial interpretations and the refinement of core concepts such as the “dominant purpose” test and “reasonable alternative”. It highlights the ongoing balance between curbing contrived tax avoidance and protecting genuine commercial transactions, with PepsiCo marking a pivotal recalibration.