On 20 September 2018, the Treasury Laws Amendment (Black Economy Taskforce Measures No 2) Bill 2018 (Bill) was introduced in the House of Representatives by the Hon. Stuart Robert MP.
According to the second reading speech, the Bill proposes to make amendments to the laws surrounding non-compliant payments, third party reporting and tobacco taxing to ensure that businesses and individuals who operate outside the tax and regulatory system do not avoid their withholding and reporting obligations.
The Bill proposes to amend the Income Tax Assessment Act 1997 (Cth) to deny an income tax deduction for certain payments if the associated withholding obligations have not been complied with. This will provide a greater incentive for employers and entities engaging contractors to comply with their withholding obligations.
These amendments are intended to apply on or after 1 July 2019.
Third party reporting
The Bill will amend the Taxation Administration Act 1953 (Cth) to require entities providing road freight, IT or security, investigation or surveillance services that have an ABN to report to the ATO information about transactions that involve engaging other entities to undertake those services for them.
The Bill will amend the Excise Act 1901 (Cth) to make excise duty payable on tobacco at time of manufacture which has been proposed together with the newly introduced Excise Tariff Amendment (Collecting Tobacco Duties at Manufacture) Bill 2018, which would establish a broader framework in respect of collecting tobacco duties at the time of manufacture.