Australian Taxation Office

New or updated materials on ATO website, including:

  • Paying a lump sum benefit: case study dealing with the calculation of the components of a lump sum benefit from a SMSF
  • Auditor-actuary contravention report instructions - for SMSF auditors and actuaries
  • Digital by default: the ATO has released a consultation paper on its Digital by default initiative which will require most of the community to use digital services to send and receive information and payments to the ATO. The ATO is seeking feedback to understand the support needed to transition fully to digital services. Comments can be made on the paper until 15 January 2016.
  • Update: Test Case Litigation Register, as at 26 November 2015
  • Update: ATO Matters under consultation, as at 27 November 2015, including one new matter relating to the revision of PS LA 2005/24 Application of the General Anti-Avoidance Rules (adraft of the revised practice statement was issued in August 2015)


Treasurer Scott Morrison gave a speech on Friday to the Association of Superannuation Funds of Australia (ASFA) conference in Brisbane where he discussed:

  • the Turnbull Government's core superannuation principles - greater choice, stronger governance, better information and more targeted incentives
  • the recommendations of the Financial System Inquiry relating to superannuation, and
  • the future of superannuation tax reform and tax concessions for superannuation, noting that "while superannuation should ensure adequate retirement incomes, it should not be seen as an open-ended savings vehicle for wealthy Australians to accumulate large balances in a tax-preferred environment, well in excess of what is required for an adequate retirement."

Child care

The Government has announced a new Jobs for Families child care package that includes support for grandparents that are the primary carer of their grandchildren through access to subsidised child care under the new Child Care Safety Net. Legislation for the new package is expected to be introduced into Parliament this week.

Exploration Development Incentive

Income Tax Assessment Act 1997 – Exploration Development Incentive Modulation Factor – Declaration Instrument (No. 1) 2015, registered on Friday, declares the modulation factor for the exploration development incentive for the 2015-16 income year to be 1. The modulation factor ensures that the total amount of exploration credits created by entities cannot exceed the exploration credit cap for the relevant income year ($25 million for 2015-16).

Goods and Services Tax (GST)

A New Tax System (Goods and Services Tax) (Particular Attribution Rules for Certain Motor Vehicle Incentive Payments Made to Motor Vehicle Dealers) Legislative Instrument 2015, registered today, overrides the basic attribution rules (under section 29-5 of the GST Act), by specifying different rules that apply to attribute GST payable on an intended taxable supply of a motor vehicle by a dealer.

Foreign acquisitions and takeovers

  • Foreign Acquisitions and Takeovers Regulation 2015, registered on Friday, prescribes definitions for section 4 of the Foreign Acquisitions and Takeovers Act 1975 (the Act), provides for exemptions from the Act, specifies the threshold values (that is, monetary amounts) that apply to certain actions, and prescribes certain actions to be significant actions and notifiable actions.
  • Foreign Acquisitions and Takeovers Fees Imposition Regulation 2015, registered on Friday, prescribes the amount of the fee payable for actions or applications which are prescribed under the Foreign Acquisitions and Takeovers Regulation 2015.
  • Foreign Acquisitions and Takeovers Legislation Amendment Regulation 2015, registered on Friday, amends the Electoral and Referendum Regulations 1940 by allowing the Australian Electoral Commission (AEC) to disclose information from an Electoral Roll to the ATO or Treasury for the purposes of administering specified statutes that regulate foreign investment in Australia. It repeals the Foreign Acquisitions and Takeovers (Notices) Regulations 1975 and the Foreign Acquisitions and Takeovers Regulations 1989.
  • Register of Foreign Ownership of Agricultural Land Rule 2015, registered on Friday, specifies that certain land is not agricultural land for the purposes of the Register of Foreign Ownership of Agricultural Land Act 2015.
  • Treasury Legislation Amendment (China-Australia Free Trade Agreement) Regulation 2015, registered on Friday, amends the Foreign Acquisitions and Takeovers Regulation 2015 and the Life Insurance Regulations 1995 to give effect to Australia’s obligations under the Free Trade Agreement between the Government of Australia and the Government of the People’s Republic of China (ChAFTA).


Customs (Chinese Rules of Origin) Regulation 2015, registered on Friday, prescribes matters relating to the rules of origin that will be required to be prescribed under new Division 1L of the Customs Act 1901 (Chinese originating goods).