ATO documents

Taxation Determinations

TD 2017/2: Fringe benefits tax: for the purposes of section 135C of the Fringe Benefits Tax Assessment Act 1986 , what is the exemption threshold for the fringe benefits tax year commencing on 1 April 2017?

TD 2017/3: Fringe benefits tax: what is the benchmark interest rate to be used for the fringe benefits tax year commencing on 1 April 2017?

Addenda - Taxation Rulings

TR 98/1: Income tax: determination of income; receipts versus earnings

TR 98/21: Income tax: withholding tax implications of cross border leasing arrangements

Notices of Withdrawal - Goods and Services Tax Rulings

GSTR 2005/4: Goods and services tax: arrangements of the kind described in Taxpayer Alerts TA 2004/6 and TA 2004/7: use of the Grouping or Margin Scheme provisions of the GST Act to avoid or reduce the Goods and Services Tax on the sale of new residential premises

GSTR 2005/5: Goods and services tax: arrangements of the kind described in Taxpayer Alert TA 2004/8: use of the Going Concern provisions and the Margin Scheme to avoid or reduce the Goods and Services Tax on the sale of new residential premises

Notices of Withdrawal - Interpretative Decisions

ATO ID 2006/269: Deductions and Expenses: interest incurred on moneys borrowed by a sole trader to pay income tax

ATO ID 2006/297: Deductibility of compound interest on a split loan facility

ATO ID 2008/40:Deductions: capital allowances - correction of cost

ATO ID 2008/53: Capital Allowances: hold - fixtures on land subject to sale contract

ATO ID 2008/54: Capital Allowances: depreciating asset - fixtures on land subject to sale contract - identification of assets held

ATO ID 2008/55: Capital Allowances: decline in value - taxable purpose - hobby of prospecting

ATO ID 2008/106: Hire purchase agreement: notional sale - 'start of the arrangement'

ATO ID 2008/137: Separate Net Income: account-based pensions

ATO ID 2009/71:Deductions: interest expense on a loan to acquire options

ATO ID 2012/40: Capital Allowances: hire purchase agreement - cost of the acquisition of the property

Practical Compliance Guidelines

PCG 2017/3: Income tax - supporting the implementation of the changes to the taxation of transition to retirement income streams

Corporate tax rate

The Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 was passed by the Senate on 31 March 2017 with 6 Government amendments and awaits re-introduction in the House of Reps. The Government's amendments effectively limit the scheduled reduction of the corporate tax rate to businesses with an aggregated turnover of less than $50m.

Diverted profits tax

The Treasury Laws Amendment (Combating Multinational Tax Avoidance) Bill 2017 and Diverted Profits Tax Bill 2017 passed the Senate on 27 March 2017 without amendment and await Royal Assent.

Same business test

The Treasury Laws Amendment (2017 Enterprise Incentives No 1) Bill 2017 was introduced into the House of Reps on 30 March 2017. It contains amendments to introduce a ‘similar business’ test in the loss rules applying to companies and listed widely held trusts, as well as amendments enabling taxpayers to self-assess the effective lives of certain intangible depreciating assets.

Tax Cases

Sandini Pty Ltd v FCT [2017] FCA 287: Although in the context of the CGT rollover for marriage or relationship breakdowns, the Federal Court held in this case, among other things, that CGT event A1 occurred at the time that there had been a change in beneficial ownership but not legal ownership of an asset.

Progress of Legislation 

As at 31.03.17

Bill

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

Description

Same business test; Effective life assessment on intellectual property

Status

Introduced into House of Reps 30.3.17.

Bill

Treasury Laws Amendment (2017 Measures No. 1) Bill 2017

Description

Innovation Measures – ESVCLP rules; ASIC

Status

Passed Senate 27.3.17. Awaiting Royal Assent.

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

Treasury Laws Amendment (Combating Multinational Tax Avoidance) Bill 2017

Description

Diverted profits tax; Multinational tax avoidance; Transfer pricing

Status

Passed Senate 27.3.17. Awaiting Royal Assent.

Bill

Diverted Profits Tax Bill 2017

Description

Diverted profits tax

Status

Passed Senate 27.3.17

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package

Status

Introduced into Senate 23.11.16. Awaiting passage by Senate.

Bill

Tax and Superannuation Laws Amendment (2016 Measures No 2) Bill 2016

Description

Remedial power for the Commissioner; Income tax averaging rules for farmers; luxury car tax; minor amendments correcting technical or drafting defects

Status

Assent on 28.2.2017 as Tax and Superannuation Laws Amendment (2016 Measures No 2) Act 2017, Act No 15 of 2017.

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.