Commonwealth revenue measures introduced into Parliament or registered as legislative instruments or regulations since our previous TaxTalk Monthly publication include the following:
Tax and Superannuation Laws Amendment (2016 measures No 1) Regulation 2016, registered on 15 April 2016, amends the A New Tax System (Goods and Services Tax) Regulations 1999 and the Superannuation Industry (Supervision) Regulations 1994 to make consequential amendments to account for changes to the tax law made by the Tax and Superannuation Laws Amendment (2015 Measures No.6) Act 2016 and the Tax and Superannuation Laws Amendment (2015 Measures No.1) Act 2016 (if enacted). Specifically, the Regulation:
- extends the definition of ‘financial supply’ in the goods and services tax (GST) Regulations so that it would include the supply of bank accounts and superannuation interests by foreign financial institutions in circumstances where an equivalent supply by an Australian entity is an ‘input taxed financial supply’ '
- creates an exception to the superannuation contribution restrictions, allowing funds to accept a contribution of an amount of the proceeds of the sale of a business to which the small business retirement concession applies. This is provided the sale involved an ‘earnout right’ and the contribution would not have been affected by the contribution restrictions had it been made during the financial year in which the business was sold. This amendment applies in relation to ‘look through earnout rights’ (within the meaning of the Income Tax Assessment Act 1997) created on or after 24 April 2015.
With the proroguing of Federal Parliament on Friday 15 April 2016, there has been no further consideration of tax-related Bills that were before the House of Representatives and the Senate.