Weekly Tax Highlights

Highlights to 5 July 2019

ATO Documents


Taxation Determinations
TD 2019/10 Income tax: can the debt and equity rules in Division 974 of the Income Tax Assessment Act 1997 limit the operation of the transfer pricing rules in Subdivision 815-B of the Income Tax Assessment Act 1997? This Taxation Determination finalises draft TD 2018/D6 which is detailed in our Riposte here.
TD 2019/11 Income tax: what are the reasonable travel and overtime meal allowance expense amounts for the 2019-20 income year?

Law Companion Ruling - Addendum
LCR 2018/5A1 First home super saver scheme

Other News


Tax measures in lapsed Bills reintroduced

The Government has reintroduced a number of tax measures contained in Bills which had lapsed following the dissolution of Parliament in April, including the thin capitalisation asset revaluation measure, anti-phoenixing measures including director penalty notices for GST (detailed in our Riposte here) and FinTech and venture capital tax concession amendments. 

Progress of legislation

As at 05.07.19

Bill

Treasury Laws Amendment (Tax Relief So Working Australians Keep of their Money) Bill 2019

Description  

This Bill implements the personal tax cuts measures announced in the 2019-2020 Federal Budget. The Bill increases the base and maximum amounts of low and middle income tax offset for the 2018-19, 2019-20, 2020-21 and 2021-22 income years, increases the amount of low income tax offset from 2022-23, and reduces the tax payable by individuals in 2022-23 and later income years by increasing income tax rate thresholds and in 2024-25 and later income years by reducing the 32.5% income tax rate to 30%.

Status

Received Royal Assent 05.07.2019. Act 52 of 2019.

Bill

Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019

Description

Reintroduces measures in lapsed Bill to 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 in the House of Reps 04.07.19.

Bill

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

Description

Reintroduces measures in lapsed Bill to amend the thin capitalisation asset valuation rules, change the GST Act in relation to online hotel bookings and removes the luxury car tax for re-imported cars refurbished overseas. The measures to broaden the SGE definition and better target the R&D Tax Incentive that were included in the lapsed Bill have not been included in this Bill.

Status

Introduced in the House of Reps 04.07.19.

Bill

Treasury Laws Amendment (2018 Measures No. 2) Bill 2019

Description

Reintroduces measures in lapsed Bill to establish 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 in the House of Reps 04.07.19.

 

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