ATO documents

Tax Determination

TD 2018/14 Income tax: what is the benchmark interest rate applicable for the year of income that commenced on 1 July 2018 for the purposes of Division 7A of Part III of the Income Tax Assessment Act 1936 and how is it used?

Class Ruling

CR 2018/33 Income tax: LifeHealthcare Group Limited – Scheme of Arrangement and payment of Interim Dividend and Special Dividend

Class Ruling - Addenda

CR 2018/31 Income tax: sale of Westfield Group stapled securities to Unibail-Rodamco SE – capital gains consequences

Draft Practical Compliance Guideline

PCG 2018/D5 Enterprise Tax Plan: small business company tax rate change: compliance and administrative approaches for the 2015–16, 2016–17 and 2017–18 income years

Practical Compliance Guideline Update

PCG 2017/2 Simplified Transfer Pricing Record Keeping Options (updated)

Decision Impact Statement

2012/1228; 2012/1265 MSAUS Pty Ltd v. Commissioner of Taxation

Other news

Revised draft legislation released on stapled structures

On 26 July 2018, Treasury released revised draft legislation on the stapled structures integrity measures to reflect feedback from public consultation on the first tranche of the draft legislation released on 17 May 2018 and also to include draft legislation to prevent foreign investors from accessing concessional MIT tax rates on agricultural land. Submissions on the revised draft legislation are due by 10 August 2018. Refer to our Tax Brief here for further details.

Draft legislation to expand reportable payment system to security, IT and road freight providers

On 23 July 2018, Treasury released draft legislation to further expand the taxable payment reporting system (TPRS) to three new industries: ‘road freight’, ‘information technology’, and ‘security, investigation or surveillance’, to ensure payments made to contractors in these industries are reported to the Australian Taxation Office. Submissions on the draft legislation are due by 17 August 2018.

Tax cases

Greig v FCT [2018] FCA 1084

The Federal Court held that a taxpayer who made significant investments in shares did not acquire his shares in a business operation or commercial transaction within the Myer principle and was not engaged in the business of dealing in shares. Accordingly, the share losses and legal fees incurred were not deductible under section 8-1 of the Income Tax Assessment Act 1997.

Progress of legislation

As at 27.07.18

Bill

Treasury Laws Amendment (Tax Integrity and Other Measures No. 2) Bill 2018

Description

Amends the ITAA 1997 to implement part of the OECD hybrid mismatch rules. Amends the Film Producer Offset, introduces exemptions for the ICC Twenty Twenty World Cup and changes the list of Deductible Gift Recipients.

Status

Introduced into Senate 27.6.18.

Bill

Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2018

Description

Small business entities can access expanded accelerated depreciation rules until June 30 2019.

Status

Introduced into Senate 25.6.18.

Bill

Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018

Description

Increased penalties and a one off amnesty for employers not meeting their superannuation obligations.

Status

Introduced into Senate 25.6.18.

Bill

Treasury Laws Amendment (Personal Income Tax Plan) Bill 2018

Description

Implements the Government’s Income Tax cuts.

Status

Received Assent 21.06.18. Act No.47 of 2018.

Bill

Treasury Laws Amendment (Tax Integrity and Other Measures) Bill 2018

Description

The Bill makes amendments to the Multinational Anti-Avoidance Law, the Small Business CGT Concessions, and Fintech and Venture Capital.

Status

Introduced into Senate 18.6.18

Bill

Treasury Laws Amendment (OECD Multilateral Instrument) Bill 2018

Description

The Bill gives the force of law in Australia to the OECD Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).

Status

Introduced into House of Reps 28.3.18.

Bill

Treasury Laws Amendment (2018 Measures No. 4) Bill 2018

Description

Implements the Government’s Superannuation Guarantee (SG) integrity package, extends Single Touch Payroll, and changes Super Fund reporting requirements.

Status

Introduced into Senate 25.6.18.

Bill

Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 2) Bill 2018

Description

Implements new rules for foreign residents owning Australian housing, technical amendments to streamline the foreign investment framework and introduces tax incentives to boost investment in affordable housing.

Status

Introduced into Senate 19.3.2018.

Bill

Treasury Laws Amendment (2018 Measures No. 2) Bill 2018

Description

Establishes the foundation for the Government's new Fintech framework. Makes a number of technical amendments to the Early Stage Venture Capital Limited Partnership, Venture Capital Limited Partnership and Tax Incentives for Early Stage Investor regimes.

Status

Introduced into Senate 26.6.18.

Bill

Treasury Laws Amendment (Black Economy Taskforce Measures No. 1) Bill 2018

Description

Introduces various measures aimed at curbing participation in the "Black economy".

Status

Introduced into Senate 18.6.18

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 Senate 12.2.18.

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. Given the Government’s announcement that the increase to the Medicare Levy will be scrapped, this Bill may not proceed

Status

Introduced into 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 Senate 12.2.18. On 28 June 2018, the Government announced that it will not proceed with this second stage of company tax cuts to extend the lower corporate tax rate to all corporate tax entities.

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.