Australian Taxation Office
New or updated materials on ATO website, including:
- Class ruling released yesterday
- Addendum TR 1999/1A1: Income tax: international transfer pricing for intra-group services - to confirm this ruling applies to income years commencing before 29 June 2013
- Withdrawal Notice TR 2000/11W: Income tax: endorsement of income tax exempt charities - withdrawn due to changes in the law and the implications of a case
- Addendum TR 2013/3A1: Income tax: research and development tax offsets: feedstock adjustments - to reflect implications of a recent case
Legislation introduced into Parliament
The following Bills have been introduced in the House of Representatives this morning:
- Tax and Superannuation Laws Amendment (2015 Measures No. 4) Bill 2015, which proposes to:
- amend scrip-for-scrip roll-over relief following the AXA Asia Pacific Holdings Ltd case
- remove the income tax exemption for employees of an Australian government agency who work overseas for not less than 91 continuous days in delivery of Official Department Assistance, and
- increase the account balance threshold below which small lost superannuation member accounts will be required to be transferred to the Commissioner of Taxation.
- Tax and Superannuation Laws Amendment (Better Targeting the Income Tax Transparency Laws) Bill 2015, which proposes to remove the obligation for the Commissioner to publish tax information for Australian owned private companies.
- Package of Bills seeking to strengthen the integrity of Australia’s foreign investment framework with effect from 1 December 2015:
- Foreign Acquisitions and Takeovers Legislation Amendment Bill 2015, including new civil penalties and additional and stricter criminal penalties to ensure foreign investors and intermediaries do not profit from breaking the rules, transfer to the ATO responsibility for regulating foreign investment in residential real estate, and lower screening thresholds for investments in Australian agriculture
- Foreign Acquisitions and Takeovers Fees Imposition Bill 2015 introduces fees on all foreign investment applications, and
- Register of Foreign Ownership of Agricultural Land Bill 2015 complements these changes by establishing a register of foreign ownership of agricultural land operated by the ATO.
Progress of Bills
Tax and Superannuation Laws Amendment (2015 Measures No. 2) Bill 2015 was passed by the House of Representatives yesterday and introduced into the Senate. This Bill proposes to:
- provide tax relief for certain mining arrangements
- increase the statutory effective life of in-house software
- provide income tax look-through treatment for instalment warrants and similar arrangements, and
- amend the company loss recoupment rules (including to deal with companies with shares with unequal share rights).
Export Market Development Grant Scheme
The report from a review of the Export Market Development Grant (EMDG) scheme titled, Certainty and Confidence, Exports and Jobs for a Changing Global Economy, was tabled in Parliament yesterday. The review notes that the scheme continues to be effective in meeting its goals of bringing benefits to Australia by encouraging the creation, development and expansion of overseas markets for Australian goods, services, intellectual property and know-how, but makes a number of recommendations for its improvement.