Commonwealth revenue measures introduced into Parliament, or registered as legislative instruments or regulations since the October edition of TaxTalk Monthly, include:
● (the Bill), which was introduced into Parliament on 18 October 2017. The Bill proposes to amend the to change the eligibility criteria for a corporate tax entity to qualify for the lower corporate tax rate. Specifically, the Bill removes the requirement that the entity be carrying on a business but introduces a new requirement that no more than 80 per cent of its assessable income is income of a certain passive nature. The amendments, once enacted, will apply from the 2017-18 income year.
● (the Bill), which was introduced into Parliament on 19 October 2017. The Bill proposes to introduce the Junior Minerals Exploration Incentive (JMEI). The JMEI, which is similar to the previous Exploration Development Incentive (EDI) that ceased to be available for expenditure incurred in the 2017-18 income year, provides a tax incentive for those who invest in small minerals exploration companies undertaking greenfields minerals exploration in Australia.
Specifically, Australian resident investors in such companies will receive a tax incentive in the form of a refundable tax offset (or where the investor is a corporate tax entity, franking credits) where the company chooses to give up a portion of their tax losses relating to their exploration expenditure in an income year. The JMEI will be available for expenditure incurred in the 2017-18, 2018-19, 2019-20 and 2020-21 income years, with the total value of incentives available for each year capped. Refer to our TaxTalk Alert: Welcome incentive for investors in greenfields mineral exploration[KAF1] for further information.
● (the Regulations) commenced on 1 October 2017, to remake and improve the Taxation Administration Regulations 1976 before they sunset, and to repeal redundant provisions, simplify language and restructure provisions for ease of navigation. These changes are not intended to affect the substantive meaning or operation of the provisions. Key changes include:
–The structure of the Regulations has been changed from that used in the Taxation Administration Regulations 1976, to follow the Act more closely.
–Certain provisions that deal with withholding payments to foreign residents have been restructured so that the provisions which prescribe what types of payments are covered are separate from the provisions for working out the amount of the payment.