ATO documents

Class Rulings 

CR 2017/55: Income tax: 'ENGIE Loy Yang Early Retirement Scheme 2017'

CR 2017/56: Income tax: the 'South East Water Corporation Early Retirement Scheme 2017'

CR 2017/57: Income tax: Scrip for scrip roll-over -Charter Hall Long WALE REIT

Simplification

CR 2017/58: Income tax: Arconic Inc. - Employee Share Scheme

CR 2017/59: Income tax: Alcoa Corporation - Separation from Alcoa Inc. (now Arconic Inc.) - Employee Share Scheme

Draft Practical Compliance Guidelines

PCG 2017/D16: Propagation arrangements adopted by registrable superannuation entities

Senate Economics References Committee inquiry into corporate tax avoidance

The Senate Economics References Committee inquiry into corporate tax avoidance held a public hearing in Sydney on 22 August 2017, hearing from representatives of IBM, Microsoft, Apple, Facebook and Google, among others. The Committee is due to report by 30 September 2017.

CbC Reporting

The text of the Competent Authority Arrangement that Australia signed on 1 August 2017 to exchange Country-by-Country (CbC) Reports with the US is now available on the ATO and IRS websites.

Global Forum tax transparency ratings

Australia has received an overall rating of “Largely Compliant” under the Global Forum on Transparency and Exchange of Information for Tax Purposes’ latest round of peer reviews which were aimed at assessing compliance with international standards for the exchange of information on request between tax authorities.

Asia Region Funds Passport and Corporate Collective Investment Vehicles

Treasury has released draft legislation to insert two new chapters to the Corporations Act 2001 to establish a regulatory framework for the Passport and CCIV regimes. Among other things, the draft Explanatory Memorandum to the draft Treasury Laws Amendment (Corporate Collective Investment Vehicle) Bill 2017 provides that the taxation arrangements applying to Attribution Managed Investment Trusts (AMITs) will be extended to CCIVs, subject to meeting certain eligibility criteria, and that exposure draft legislation addressing the taxation treatment of CCIVs will be released at a later date.

Commissioner of Taxation v Primary Health Care Limited [2017] FCAFC 131 (24 August 2017): The Full Federal Court has unanimously dismissed the Commissioner of Taxation’s appeal from the decision of the AAT. The AAT had set aside the Commissioner’s decision to refuse to treat the taxpayer’s out-of-time income tax objections as if they had been lodged within time and substituted it with a decision in favour of the taxpayer.

Progress of legislation

As at 25.8.17

Bill

Medicare Levy Amendment (National Disability Insurance Scheme Funding) Bill 2017

Description

Fund the NDIS by amending the Medicare Levy Act 1986 to increase the Medicare levy rate from 2 to 2.5% of taxable income for the 2019-20 income year and later income years.

Status

Introduced into House of Reps 17.8.17.

Bill

Treasury Laws Amendment (2017 Measures No. 4) Bill 2017

Description

Income tax relief for transfers within a fund to a MySuper product. Integrity changes to the wine equalisation tax producer rebate rules.

Status

Received Royal Assent 23.8.2017. Act No. 94 of 2017.

Bill

Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017

Description

Extends the reduction of the corporate tax rate to 25 per cent by 2026/27 to businesses with turnover of more than $50 million.

Status

Introduced into House of Reps 11.5.17.

Bill

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

Description

Similar business test; Effective life assessment on intellectual property.

Status

Introduced into Senate 22.6.17.

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package.

Status

Introduced into Senate 23.11.16. Awaiting passage by Senate.