HIGHLIGHTS TO 26 JANUARY 2018

ATO documents

TR 2018/1: Petroleum resource rent tax: character of expenditure incurred in relation to abandonment, decommissioning and rehabilitation activities undertaken on a part of a petroleum project

CR 2018/4: Income tax: Australian Government Bond holders electing to exchange bonds for CHESS Depository Interests (CDIs) CR 2018/5: Income tax: scrip for scrip roll-over: acquisition of units in EQT Emerging Companies Fund by SGH Professional Investor Emerging Companies Trust CR 2018/6: Income tax: Tatts Group Limited Scheme of Arrangement and payment of Special Dividend

Practical compliance guideline

PCG 2018/1: ATO compliance approach - attribution of ADI equity capital and controlled foreign entity equity

PR 2017/2A1: Income tax: deductibility of interest in relation to investment in units in the Macquarie Flexi 100 Trust issued on or before 30 June 2020

De Figueiredo and Commissioner of Taxation (Taxation) [2018] AATA 62 (23 January 2018): The Tribunal affirmed the objection decision made by the Commissioner and held that the issue of shares in the course of a restructure and initial public offering to a taxpayer in exchange for their entitlements under a profit participation plan was assessable as income under ordinary concepts, having regard to the High Court’s decision in Blank v Commissioner of Taxation [2016] HCA 42.

Progress of legislation

As at 26.1.18

Parliament resumes on 5 February 2018.

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

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 the Senate 13.11.17.

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.