Federal Parliament has been in recess since 23 June 2017 and will resume for the Spring session of Parliament on 8 August 2017. Commonwealth revenue measures registered as legislative instruments or regulations since our previous TaxTalk Monthly update include:
- Income Tax (Effective Life of Depreciating Assets) Amendment Determination 2017 (No 1), which amends the Income Tax (Effective Life of Depreciating Assets) Determination 2015, provides the Commissioner of Taxation’s determination of effective life for certain depreciating assets, which can be used as a basis to calculate the decline in value (depreciation) of an asset for income tax purposes with effect from 1 July 2017.
- CRS committed jurisdiction list declares jurisdictions committed to the Common Reporting Standard (CRS). This will temporarily relieve Australian Financial Institutions from applying required due diligence procedures under Australia’s CRS law to accounts held by particular Investment Entities resident in the specific committed foreign jurisdictions during the period from 1 July 2017 to 31 December 2019.
· Foreign Acquisitions and Takeovers Amendment (Exemption and Other Measures) Regulations 2017, applicable from 1 July 2017, introduces a suite of changes to enhance and streamline the operation of the foreign investment framework, facilitating business investment and reducing red-tape. The changes include, among other things, introducing new exemption certificates for acquisitions of securities and residential land to avoid multiple approvals and recognising a greater range of commercial uses of land as acquisitions of commercial land. The Regulations also address a number of other unintended consequences of the significant reforms introduced in December 2015.
- Classes of Government Related Entities Exempt from Providing Third Party Reports Determination 2017 (which replaces Classes of Government Related Entities Exempt from providing Third Party Reports Determination 2016) exempts specified classes of government related entities from having to prepare and lodge reports in relation to the provision of a grant to an entity that has an Australian Business Number (ABN) or the provision of consideration wholly or partly for the supply of services (the third party reporting regime) with effect from 1 July 2017.
- Customs Tariff Amendment Regulations 2017 amends the Customs Tariff Regulations 2004 to prescribe the lists of countries and places that are eligible for preferential arrangements for customs duty. It also updates the preferential arrangements for certain countries to provide for Forum Island Countries to be subject to Developing Country rates of duty and removes redundant definitions and regulations from the Customs Tariff Regulations 2004 that relate to the preferential rates of duty that were imposed on certain goods imported from the United States of America.
- Excise Amendment (Refund Scheme for Alcohol Manufacturers) Regulations 2017 amends the Excise Regulation 2015 to extend the current brewery refund scheme to Australian-based distillers of beverages such as whisky, vodka, gin and liqueurs, and producers of low strength fermented beverages such as non-traditional cider with effect from 1 July 2017.