Weekly Tax Highlights

Highlights to 1 March 2019

ATO Documents

Taxation determination

TD 2019/2 Income tax: value of goods taken from stock for private use for the 201819 income year

Class rulings - Errata

CR 2016/42ER1 Income tax: deductibility of donations to Launch Housing Limited under a Payment Direction Deed
CR 2018/28ER1 Income tax: deductibility of donations to Bridge Housing Limited under a Payment Direction Deed

Withdrawal notices

TD 2013/3W Income tax: value of goods taken from stock for private use for the 2012-13 income year
PR 2003/21W Income tax: Gunns Plantations Woodlot Project 2003
PR 2004/44W Income tax: Gunns Plantations Woodlot Project 2004
PR 2005/10W Income tax: Gunns Plantations Woodlot Project 2005 ‘2005 Growers’
PR 2005/11W Income tax: Gunns Plantations Woodlot Project 2005 ‘2006 Growers’
PR 2006/7W Income tax: Gunns Plantations Woodlot Project 2006 ‘2006 Growers’
PR 2006/8W Income tax: Gunns Plantations Woodlot Project 2006 ‘2007 Growers’

Tax Cases

Harding v Commissioner of Taxation [2019] FCAFC 29

The Full Federal Court has found that the taxpayer had a “permanent place of abode” in Bahrain, even though he lived in temporary accommodation, and therefore allowed his appeal against a decision that he was a resident of Australia. The Full Federal Court determined that “permanent place of abode” should not be construed by reference to a specific permanent dwelling but can include a geographic location such as a town or country.

Progress of legislation

As at 01.03.2019

Bill

Treasury Laws Amendment (Mutual Reforms) Bill 2019

Description

Introduced by the Government into the Senate to reform the mutual sector including amendments to the Corporations Act and related tax amendments.

Status

Introduced into Senate 13.02.19.

Bill

Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019

Description

Prohibit creditor-defeating dispositions of company property; improve accountability of resigning directors; allow the Commissioner to collect estimates of anticipated GST liabilities; make company directors personally liable for GST; authorise the Commissioner to retain tax refunds.

Status

Introduced into House of Reps 13.02.19.

Bill

Treasury Laws Amendment (Increasing the Instant Asset Write-Off for Small Business Entities) Bill 2019

Description

Increases the threshold below which amounts can be immediately deducted by small businesses and extends the time period during which small business entities can access expanded accelerated depreciation rules.

Status

Introduced into House of Reps 13.02.19.

Bill

Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2019

Description  

Implements integrity measures in relation to stapled structures, thin capitalisation, withholding tax exemption for superannuation funds for foreign residents and the sovereign immunity tax exemption. The Bill was amended in relation to premises used primarily for the provision of disability accommodation and student accommodation.

Status

Introduced into House of Reps 20.9.18.

Bill

Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018

Description

Broadens the SGE definition, amends the thin capitalisation asset valuation rules, better targets the R&D Tax Incentive, changes the GST Act in relation to online hotel bookings and removes the luxury car tax for re-imported cars refurbished overseas.

Status

Introduced into House of Reps 20.09.18. Report released.

Bill

Treasury Laws Amendment (2018 Measures No 5) Bill 2018

Description

Technical amendments to the AMIT regime; extending deductible gift recipient status to entities promoting Indigenous languages.

Status

Passed both Houses and awaits Royal Assent 18.02.19.

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 25.06.18.

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

Received Royal Assent 01.03.19. Act No. 8 of 2019.

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 19.03.18.

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 26.06.18.

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 (2017 Enterprise Incentives No. 1) Bill 2017

Description

Similar business test; Effective life assessment on intellectual property. The Government has announced that it will not be proceeding with the amendment to provide taxpayers with the choice to self-assess the effective life of certain intangible depreciating assets from 1 July 2016.

Status

Received Royal Assent 01.03.19. Act No.7 of 2019.

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package.

Status

Introduced into Senate 23.11.16.

 

 

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