Australian Taxation Office

New or updated materials on ATO website, including:

Interaction of the consolidation and the general anti-avoidance regimes

In Channel Pastoral Holdings Pty Ltd and Commissioner of Taxation, the Full Federal Court considered the interaction of the general anti-avoidance rule in Part IVA of the Income Tax Assessment Act 1936 and the consolidation rules in a case concerning a restructure which resulted in the formation of a consolidated group and the subsequent sale of the assets held by a subsidiary member to a non-related party. The five member bench of the Full Court agreed that the Commissioner was not prevented from issuing an assessment to the subsidiary (in reliance of a Part IVA determination made to that subsidiary) in relation to a period during which it was a group member, where the assessment and determination were predicated on the basis that the entity was not a member of the group, but a stand-alone taxpayer.

Federal Budget

On the eve of the 2015-16 Federal Budget, we have heard lots of speculation, leaks and pre-Budget releases. Have you seen PwC's Federal Budget infographic, which highlights what we consider might be the big economic issues to be addressed in this year's Federal Budget? Following the delivery of the Budget tomorrow night, PwC's Federal Budget commentary will be available overnight on our dedicated Federal Budget website.

Childcare package

The Prime Minister and Minister for Social Services yesterday announced additional details of theJobs for Families child care package to be included in tomorrow's Federal Budget. Central to the package is a new, mean tested Child Care Subsidy for all families from 1 July 2017, which will replace the current Child Care Benefit, Child Care Rebate and Jobs, Education and Training Child Care Fee Assistance programs.

Information sharing by taxation officers

Treasury has released exposure draft regulations to allow taxation officers to continue to share taxpayer information with Project Wickenby agencies, or a court or tribunal, until 30 June 2017, and to list the Fraud and Anti-Corruption (FAC) Centre as a prescribed taskforce to enable taxation officers to share taxpayer information with other FAC Centre agencies on an ongoing basis.

Senate Committee report on Housing Affordability

The Senate Economics Reference Committee tabled its Affordable Housing Report on 8 May 2015. The Committee makes a range of recommendations directed primarily toward improving home purchase affordability. From a tax perspective, it recommended that State governments phase out conveyancing stamp duties and transition to more efficient taxes, potentially land tax levied on a broader base, and also recommended that the Government investigate the effect of the current taxation treatment of investment housing, in particular negative gearing and the capital gains tax discount, on home purchase affordability and consider if alternative approaches would help improve affordability.