ATO documents

Notice of Withdrawal - Taxation Determination

TD 45: Capital Gains: What are the CGT consequences of the acquisition by one of two tenants in common of the interest of the other tenant in common?

Notices of Withdrawal - Interpretative Decisions

The ATO has withdrawn a number of interpretative decisions, mainly on the basis that the ATO has provided other (non-binding) guidance on these issues. The full list of interpretative decisions can be found here.

Corporate tax rate

The Treasurer has confirmed that the Government will re-introduce the remaining elements of its Enterprise Tax Plan, to eventually reduce the corporate tax rate to 25% for all companies, when Parliament resumes for the Federal Budget on 9 May 2017.

Stapled structures

The Treasurer has announced that the timeline for the Government’s review of stapled structures will be extended to the end of July. The Government will not be responding to the issue in the 2017-18 Federal Budget.

Board of Taxation– possible infrastructure review

The minutes from the Board of Taxation’s latest meeting on 28 April 2017 indicate that one of its possible new projects, although it seems yet to be confirmed, is a review of the taxation of infrastructure.

Tax Cases

Cable & Wireless Australia & Pacific Holding BV (in liquidatie) v Commissioner of Taxation [2017] FCAFC 71 (1 May 2017): The Full Federal Court has dismissed the taxpayer’s appeal, agreeing with the decision of Pagone J at first instance that the non-resident taxpayer was not entitled to a refund of dividend withholding tax from consideration received by the taxpayer as a result of an off-market buyback of shares they held in Optus. At issue was whether a debit made by Optus to a buy-back reserve account was a debit to a share capital account within the meaning of s.6D (as it then stood) and therefore not a dividend. The Full Federal Court held that the buy-back reserve account was not a share capital account.

Progress of legislation

Federal Parliament resumes on Tuesday, 9 May 2017.

As at 9.5.17

Bill

Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill 2017

Description

Similar business test; Effective life assessment on intellectual property

Status

Introduced into House of Reps 30.3.17.

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Bill

Treasury Laws Amendment (GST Low Value Goods) Bill 2017

Description

GST imposed on low cost imported goods

Status

Introduced into House of Reps 16.2.17.

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package

Status

Introduced into Senate 23.11.16. Awaiting passage by Senate.

Bill

Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016

Description

Immediately reduces the tax rate for businesses with turnover of up to $10 million. Reduces the company tax rate for all businesses with an aggregated turnover of less than $50m to 25 per cent by 2026/27. Increases the unincorporated tax discount for small business.

Status

Passed Senate with amendments 31.3.17. Awaiting reintroduction into the House of Reps.