Weekly Tax Highlights

Highlights to 5 October 2018

ATO documents

Class ruling

CR 2018/39 Income tax: Fermentum Pty Ltd – transfer of shares to custodian

ATO Interpretative Decisions - Withdrawals

ATO ID 2002/397W Deductions - cash shortages paid by an employee

ATO ID 2002/918W Stockbroker - Deductibility of amount incurred due to client bad debts

ATO ID 2007/219W Deduction for increased amount of superannuation lump sum death benefit

ATO ID 2010/5W Complying superannuation fund: deduction for increased amount of superannuation lump sum death benefit

Other news

Treasury discussion paper on digital economy and corporate tax system

On 2 October 2018, the Government released a discussion paper for consultation exploring options in relation to the tax system and the digitalised economy. For further details, refer to our Riposte here.

Progress of legislation

As at 05.10.18.

Bill

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

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.

Status

Introduced into House of Reps 20.09.18.

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.

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

Introduced into House of Reps 20.09.18.

Bill

Treasury Laws Amendment (Black Economy Taskforce Measures No 2) Bill 2018

Description

Denies income tax deduction for certain payments if associated withholding obligations have not been complied with; third party reporting for road freight, IT or security and investigation or surveillance services; tobacco excise.

Status

Received Royal Assent on 03.10.18. Act No 121 of 2018.

Bill

Treasury Laws Amendment (Supporting Australian Farmers) Bill 2018

Description

The Bill makes amendments to allow primary producers to immediately deduct (rather than depreciate over three years) the cost of fodder storage assets, such as silos and hay sheds, used to store grain and other animal feed.

Status

Received Royal Assent on 03.10.18. Act No 123 of 2018. 

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

Received Royal Assent on 21.08.2018. Act No 109 of 2018. 

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 (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

Received Royal Assent on 03.10.18, Act No 124 of 2018. 

 

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 25.06.18.

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 19.03.18.

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

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

Description

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

Status

Passed both Houses with amendment. Awaiting Royal Assent 18.09.18.

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.

Status

Introduced into Senate 22.6.17.

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package.

Status

Introduced into Senate 23.11.16.

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