ATO documents

CR 2017/74: Income tax: Spicers Ltd - CGT treatment of disposal of PaperlinX Step-Up Preference Securities in exchange for Spicers ordinary shares

TD 2017/22: Income tax: where an Australian corporate tax entity is a beneficiary of a trust, can the trust 'hold' a direct control interest (within the meaning of section 350 of the Income Tax Assessment Act 1936) in a foreign company for the purpose of Subdivision 768-A of the Income Tax Assessment Act 1997?

LCG 2015/3: Subdivision 815-E of the Income Tax Assessment Act 1997: Country-by-Country reporting

Draft legislation released for FinTech tax incentive

On 31 October, the Government released draft legislation to amend the tax incentives under the Early Stage Innovation Companies (ESIC), Early Stage Venture Capital Limited Partnership (ESVCLP) and Venture Capital Limited Partnership (VCLP) regimes to support investment in FinTech companies. For further details, refer to our Riposte here.

ATO to revise and finalise draft Ruling on when a company carries on a business

On 2 November, the ATO updated its website guidance on the Government’s proposal to reduce the corporate tax rate to 27.5% and confirmed that following changes to the Bill as introduced on 18 October, TR 2017/D7 (which sets out the ATO’s view on when a company is “carrying on a business” to qualify for the 27.5% corporate tax rate) will be finalised in relation to section 23 of the Income Tax Rates Act 1986 (Rates of tax payable by companies) and section 328-110 of the Income Tax Assessment Act 1997 (Meaning of small business entity), rather than section 23AA of the Income Tax Rates Act 1986 (Meaning of base rate entity), as it is presently drafted.

Progress of legislation

As at 3.11.17

Bill

Treasury Laws Amendment (Junior Minerals Exploration Incentive) Bill 2017

Description

Replaces the former Exploration Development Incentive with the Junior Mineral Exploration Tax Credit.

Status

Introduced into House of Reps 19.10.17.

Bill

Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017

Description

Clarifies that certain corporate tax entities will not qualify for the lower corporate tax rate if, broadly, more than 80 per cent of their assessable income is income of a passive nature.

Status

Introduced into House of Reps 18.10.17.

Bill

Treasury Laws Amendment (2017 Measures No 6) Bill 2017

Description

Amends the GST Act to ensure that supplies of digital currency receive equivalent GST treatment to supplies of money.

Status

Act No. 118 of 2017.

Bill

Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 1) Bill 2017

Description

Part of Government Housing Affordability Package.

Status

Introduced into the Senate 18.10.17.

Bill

First Home Super Saver Tax Bill 2017

Description

Part of Government Housing Affordability Package.

Status

Introduced into the Senate 18.10.17.

Bill

Treasury Laws Amendment (Housing Tax Integrity) Bill 2017

Description

Part of Government Housing Affordability Package.

Status

Introduced into the Senate 19.10.17.

Bill

Foreign Acquisitions and Takeovers Fees Imposition Amendment (Vacancy Fees) Bill 2017

Description

Part of Government Housing Affordability Package.

Status

Introduced into the Senate 19.10.17.

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 (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.