Weekly Tax Highlights

Highlights to 9 November 2018

ATO documents

Law Companion Ruling

LCR 2018/9 Housing affordability measures: contributing the proceeds of downsizing to superannuation

Practical Compliance Guideline - Updates

PCG 2017/1DC2 ATO compliance approach to transfer pricing issues related to centralised operating models

Class Ruling

CR 2018/43 Income tax: ‘Sydney Water Corporation Networks Business Unit Retirement Scheme 2018/2019’

Class Ruling - Addendum

CR 2018/35A1 Income tax: CSL Limited Non‑Executive Director Rights Plan

Other news

ATO to provide guidance on CGT rollovers and demergers

The ATO has announced that it will provide guidance on two matters relevant to demerger relief: (1) sequential planned transactions where a CGT roll-over is claimed for each transaction and the first roll-over (i.e. the demerger) contains a 'nothing else' condition; and (2) for the purposes of applying the demerger provisions what is the scope of a "restructuring".  Refer to our Riposte here for further details.

Taxation of insurance companies: Treasury discussion paper

On 5 November 2018, the Government released a consultation paper on the tax impacts of implementing the new accounting standard for insurance contracts (AASB17) which will apply mandatorily for annual reporting periods beginning on or after 1 January 2021. Submissions are due by 31 January 2019.

Progress of legislation

As at 09.11.18.

Bill

Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018

Description  

The Bill implements the proposal to accelerate the reduction of the tax rate to 25% from the 2021-22 financial year for entities that derive no more than 80% of their income in passive forms and have an aggregated turnover of less than $50 million.

Status

Received Royal Assent 25.10.18. Act No 135 of 2018.

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 the Senate 18.10.18.

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 25.06.18.

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

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

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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