Commonwealth revenue measures introduced into Parliament or registered as legislative instruments or regulations since our previous TaxTalk publication include the following:
- Superannuation (Objective) Bill 2016, introduced into Parliament on 9 November 2016, which proposes to enshrine the primary and subsidiary objectives of the superannuation system in legislation and introduce a requirement for statements of compatibility with these objectives to be prepared for every Bill or regulation relating to superannuation.
- Treasury Laws Amendment (Fair and Sustainable Superannuation) Bill 2016 and Superannuation (Excess Transfer Balance Tax) Imposition Bill 2016, which will implement the package of superannuation reforms intended to improve the sustainability, flexibility and integrity of the superannuation system from 1 July 2017, were introduced into Parliament on 9 November 2016 and have also completed their passage through Parliament without amendment (and have since been given Royal Assent on 29 November 2016).
- Customs Tariff Amendment (Expanded Information Technology Agreement Implementation and Other Measures) Bill 2016, introduced and passed both Houses of Parliament in November, will implement commitments made in the 2016-17 Australian Federal Budget to reduce customs duty on certain information technology products.
- Income Tax Rates Amendment (Working Holiday Maker Reform) Bill 2016 (No 2), introduced into Parliament on 28 November 2016, which proposes to change the rate of tax to apply to working holiday maker's taxable income (`backpacker tax') to a flat 15 per cent. This Bill replaced the Income Tax Rates Amendment (Working Holiday Maker Reform) Bill 2016 which failed to be passed (note that the other Bills in this package (i.e. Treasury Laws Amendment (Working Holiday Maker Reform) Bill 2016, and Superannuation (Departing Australia Superannuation Payments Tax) Amendment Bill 2016) completed their passage through Parliament as originally introduced).
With the Spring session of Parliament to end on Thursday 1 December 2016, as at 12 noon (AEST) 30 November 2016, the following key Bills (introduced in earlier months) remain in progress:
- Tax and Superannuation Laws Amendment (2016 Measures No 2) Bill 2016 which proposes several amendments, including the introduction of a statutory remedial power for the Commissioner of Taxation, changes to allow primary producers to access income tax averaging ten income years after they opt out, and relief from luxury car tax for certain public institutions that import or acquire luxury cars for public display.
- Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 which seeks to reduce the corporate tax rate to 25 per cent, increase the tax discount for unincorporated small businesses and increase the small business entity threshold for certain purposes.
- Income Tax Rates Amendment (Working Holiday Maker Reform) Bill 2016 (No 2) (as noted above).
- Superannuation (Objective) Bill 2016 (as noted above).
Federal Parliament will be in recess until commencing the Autumn 2017 sittings on 7 February 2017. For those who are looking ahead, the 2017-18 Australian Federal Budget has been flagged for 9 May 2017.