Weekly Tax Highlights

Highlights to 28 June 2019

ATO Documents


Taxation Ruling
TR 2019/5 Income tax: effective life of depreciating assets (applicable from 1 July 2019)

Class Rulings
CR 2019/40 MyLogbook Solution - use for FBT car logbook and odometer records
CR 2019/41 YWCA Canberra Ltd - deductibility of donations under a Payment Direction Deed
CR 2019/42 Amcor Limited - scrip for scrip roll-over

Product Ruling
PR 2019/4 Income tax: Challenger Guaranteed Annuity (Liquid Lifetime) – 2019

Draft Law Companion Ruling
LCR 2019/D2 Non-concessional MIT income. For further details, refer to our Riposte here.

Draft Good and Services Taxation Ruling
GSTR 2019/D1 Goods and services tax: determining the creditable purpose of acquisitions in relation to transaction accounts

Practical Compliance Guidelines
PCG 2017/13 Division 7A - unpaid present entitlements under sub-trust arrangements maturing in the 2017, 2018, 2019 or 2020 income years
PCG 2019/5 The Commissioner's discretion to extend the two year period to dispose of dwellings acquired from a deceased estate

Progress of legislation


Federal Parliament resumed on Tuesday, 2 July 2019.
As at 28.06.19

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

Received Royal Assent 05.04.19. Act No 37 of 2019.

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

Lapsed at dissolution 11.04.19

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

Received Royal Assent 06.04.19. Act No 51 of 2019.

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

Received Royal Assent 05.04.19. Act No 34 of 2019.

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

Lapsed at dissolution 11.04.19

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

Lapsed at dissolution 11.04.19

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

Lapsed at dissolution 11.04.19

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

Lapsed at dissolution 11.04.19

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

Lapsed at dissolution 11.04.19

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package.

Status

Lapsed at dissolution 11.04.19

 

 

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