ATO documents 

CR 2017/75: Income tax: Special Dividend, rebalancing of stapled security structure: 360 Capital Group Limited

CR 2017/76: Fringe benefits tax: employers who use the EZY2C telematics system (EZY2C GPS Tracking System) for car log book record and odometer record keeping requirements

CR 2017/77: Income tax: Dexus Funds Management Limited Capital Reallocation

Draft legislation released for purchasers of new residential property to remit GST

The Government has released draft legislation to give effect to the 2017-18 Budget announcement that from 1 July 2018, purchasers of new residential premises or new residential subdivisions will pay the GST on the purchase price directly to the ATO as part of the settlement rather than developers. The consultation period ends on 20 November 2017. For further details, refer to our Riposte here.

US Tax Reform

On 2 November the Republicans in the US House of Representatives released the text of the tax reform Bill, the Tax Cuts and Jobs Act. This Bill includes a proposal for a 20% gross-basis tax imposed on a US company making payments to a related foreign company from 1 January 2018, as well as rules limiting the deductible interest of US subsidiaries which could affect Australian businesses with US operations. For further details of the Bill, refer to our Riposte here.

Further, on 7 November, the Australian Treasury published a working paper examining the likely impacts of the framework for US tax reform released by the US Administration and Republican Congressional leadership on 27 September, in the context of the global trend toward lower corporate taxes.

Progress of legislation

As at 10.11.17

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.