ATO documents

Taxation Ruling

TR 2017/D4: Income tax: when does a corporate limited partnership 'credit' an amount to a partner in that partnership?

Class Ruling

CR 2017/30: Income tax: Tasmania Mines Limited - selective capital reduction and cancellation of shares

Practical Compliance Guideline

PCG 2017/6: Superannuation reform: commutation of a death benefit income stream before 1 July 2017

Draft Practical Compliance Guidelines

PCG 2017/D4: ATO compliance approach to taxation issues associated with cross-border related party financing arrangements and related transactions PCG 2017/D7: Enterprise Tax Plan: small business over-franking in 2016-17 income year because of tax rate change

Taxation Determinations

TD 2017/13: Income tax: capital gains: if you build a dwelling on land that you acquired before 20 September 1985 ('pre-CGT'), are you required to make a choice under section 118-150 of the Income Tax Assessment Act 1997 (ITAA 1997) to get the main residence exemption? TD 2017/14: Fringe benefits tax: for the purposes of section 39A of the Fringe Benefits Tax Assessment Act 1986 what is the car parking threshold for the fringe benefits tax year commencing on 1 April 2017?

Notices of Withdrawal

TD 44: Capital Gains: How do sections 160ZL and 160ZM interact with section 308? TD 59: Capital Gains: Where a dwelling is erected on pre-CGT land, is an election required under subsection 160ZZQ(5) to get the principal residence exemption for the time during which construction takes place? TR 2013/D7: Income tax: apportionment of expenses incurred by a superannuation entity only partly in gaining its assessable income IT 2672: Income tax: deductibility of costs of amending a superannuation fund trust deed TR 2003/5: Income tax and fringe benefits tax: public benevolent institutions

Addenda – Taxation Ruling

TR 93/17: Income tax: income tax deductions available to superannuation funds

Legislative Determinations

TPAL 2017/1: Requirement to lodge a return for the year of income ended 30 June 2017 under the Income Tax Assessment Act 1936, the Income Tax Assessment Act 1997, the Income Tax (Transitional Provisions) Act 1997, the Taxation Administration Act 1953 , the Superannuation Industry (Supervision) Act 1993, the Higher Education Support Act 2003 and the Trade Support Loans Act 2014 TPAL 2017/2: Requirement to lodge a return for the year of income ended 30 June 2017 under the Income Tax Assessment Act 1936 and the Taxation Administration Act 1953 - Department of Human Services - parents with a child support assessment

Related party debt – ATO risk ratings

The ATO has released draft Practical Compliance Guideline PCG 2017/D4 on the ATO’s compliance approach to taxation issues associated with cross-border related party debt. Refer to our Riposte here for further details.

Bank levy

The Treasurer has advised that legislation for the implementation of the ‘major bank levy’ that was announced in the 2017/2018 Federal Budget will be introduced in the next sitting fortnight of Parliament (ie. between 22 May and 1 June 2017). Refer to our Tax Brief on the Budget here for further details on the levy.

Corporate tax rate

The Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 received Royal Assent on 19 May 2017. The Bill reduces the corporate tax rate for businesses with an aggregated turnover of less than $50m to 25 per cent by the 2026/27 income year.

Tax cases

Thomas v Commissioner of Taxation [2017] FCAFC 57 (12 April 2017): The Commissioner has applied for special leave to appeal to the High Court against the decision of the Full Federal Court. The Full Federal Court had unanimously allowed the taxpayers’ appeals and held that they were entitled to franking credits allocated differently from the net income of a trust.

Denmark Community Windfarm Ltd v Commissioner of Taxation [2017] FCA 478 (10 May 2017): The Federal Court has held that a grant paid to the taxpayer under the Commonwealth’s Renewable Remote Power Generation Program in relation to the construction of windfarms was an “assessable recoupment” for the purpose of Subdivision 20-A.

Progress of legislation

As at 19.5.17

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 House of Reps 30.3.17.

Bill

Treasury Laws Amendment (GST Low Value Goods) Bill 2017

Description

GST imposed on low cost imported goods

Status

Introduced into House of Reps 16.2.17.

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package

Status

Introduced into Senate 23.11.16. Awaiting passage by Senate.

Bill

Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016

Description

Immediately reduces the tax rate for businesses with turnover of up to $10 million. Reduces the corporate tax rate for all businesses with an aggregated turnover of less than $50m to 25 per cent by 2026/27. Increases the unincorporated tax discount for small business.

Status

Received Royal Assent on 19.5.17 as Act No. 41 of 2017.