In response to the Board of Taxation’s report into the tax arrangements applying to managed investment trusts (MITs), the Government is to put in place a new tax system for MITs, to commence on 1 July 2011. The key features of the proposed new MIT tax system are: ● the provision of an elective “attribution” [...]
As part of the 2010-11 Budget, the Assistant Treasurer announced that the Government will introduce CGT amendments to improve the ability for businesses to restructure. In particular, the Government will: ● extend the CGT roll-over for the conversion of a body to an incorporated company; ● broaden the range of CGT roll-overs where entities can [...]
In a media release of 12 May 2010, the Assistant Treasurer announced that amending legislation will be introduced to apply look-through CGT treatment for qualifying earnout arrangements in the sale of business assets. Earnout arrangements are a common and efficient way of structuring the sale of a business or business assets to deal with uncertainty [...]
In a statement issued on 14 September 2009, the Assistant Treasurer released the post-consultation details of the 2009-10 Budget measure to tighten the non-commercial loan rules in Div 7A ITAA 1997. Submissions were received in the consultation process to the effect that genuine farming businesses and those small businesses that include a residence located at [...]
An exposure draft bill (and explanatory memorandum) to overcome the effect of the Federal Court’s decision in DFCT v PM Developments Pty Ltd [2008] FCA 1886; 2008 ATC ¶20-078 was released by the Assistant Treasurer on 13 July 2009. In that case, Logan J held that the GST liability for transactions occurring during the period [...]
The Board will also undertake a post implementation review of certain aspects of the consolidation regime, namely: the operation of the single entity rule; the interaction between the consolidation provisions and other parts of the income tax law; and the operation of the entry history rule in acquisition cases. The Assistant Treasurer pointed out that [...]
The Alienation of Personal Services Income provisions are integrity rules designed to address both the alienation of personal services income through interposing an entity and the capacity of individuals and interposed entities to claim higher deductions than employees providing the same or similar services. The provisions were introduced in 2000 and their effectiveness has not [...]
The Assistant Treasurer announced on 3 June 2009 that the Board of Taxation is to undertake post-implementation reviews of certain aspects of the consolidation regime and the provisions relating to the alienation of personal services income.
The Assistant Treasurer announced that, in the context of the 2009-10 Budget, following consultation on the abolition of the trust cloning exception, the Government will provide a CGT roll-over for assets transferred between trusts with no material discretionary elements (sometimes referred to as fixed assets) and with the same beneficiaries. This will defer the [...]
The Government has announced its response to the Board of Taxation’s review of the legal framework for the administration of GST. The Board made 46 recommendations and the Government will implement 41 of these recommendations. Most of the recommendations with substantial changes to the GST law will apply from 1 July 2010, with one recommendation [...]
It was announced in the context of the 2009-10 Budget that amendments would be made to improve the integrity of the tax system in the following respects: closing (from and including the 2009-10 income year) a tax loophole that allows a relatively small number of mostly high wealth individuals to exploit parts of the tax [...]
The Government has announced a range of measures in the 2009-10 Budget as part of its ongoing efforts to improve the operation of the tax law. The following measures were announced to cut compliance costs for business, strengthen the integrity of the tax system and further streamline the tax law design process: amendments to the [...]
The Government has announced in the 2009-10 Budget its interim response to the High Court’s decision in FCT v Word Investments Ltd. The “in Australia” requirements in Div 50 ITAA 1997 are to be amended to ensure that Parliament retains the ability to fully scrutinise those organisations seeking to pass money to overseas charities and [...]
It was announced in the 2009-10 Budget that for small business entities the investment tax break rate is to be increased to 50% (instead of the 30% and 10% rates). All other businesses can continue to access the investment tax break at the 30% and 10% rates. Small business entities only need to invest a [...]
On 29 April 2009, the Minister for Superannuation and Corporate Law announced that the optional CGT roll-over for capital losses for mergers of complying superannuation funds with APRA-regulated superannuation funds with at least five members is to be expanded following consultation with industry. The details of the expansion are as follows: the scope of the [...]
Consolidation regime On 28 April 2009 the Assistant Treasurer released exposure draft legislation and associated explanatory material to improve the income tax consolidation regime. The exposure draft implements the majority of the changes announced in the 2008-09 Budget to enhance the operation of the consolidation regime and improve interactions with other parts of the law. [...]
In a joint media release issued on 28 March 2009 the Minister for Small Business and the Treasurer announced that the quarterly PAYG instalments for the 2009-10 income year will be reduced for taxpayers whose quarterly tax instalments are adjusted for previous years’ Gross Domestic Product (“GDP”) growth. The expected increase in the Consumer Price [...]
On 19 March 2009 the Assistant Treasurer announced that the CGT main residence exemption will be extended to compulsory acquisitions (and certain other involuntary events) relating to part of a taxpayer’s main residence. This will ensure that taxpayers do not pay CGT on compulsory acquisitions of part of their main residence and that taxpayers are [...]
On 13 March 2009 the Assistant Treasurer released for public comment an exposure draft Tax Laws Amendment (Confidentiality of Taxpayer Information) Bill 2009 and explanatory materials. The exposure draft Bill proposes to implement the single and consolidated framework, outlined in a Treasury discussion paper released in 2006, to govern the protection and disclosure of taxpayer [...]
The Assistant Treasurer announced on 27 February 2009 that CGT roll-over relief is to be provided for irrigators who transform their entitlement to water under an irrigation right held against an irrigation infrastructure operator into an individual water entitlement. The roll-over is to apply to CGT events that happen on and after 1 July 2008 [...]
On 25 February 2009, the Treasurer announced the release for public comment of draft legislation and explanatory materials for the temporary 30% (reducing to 10%) investment allowance available to small businesses for eligible capital investments of $1,000 or over, and for other businesses for eligible capital investments of $10,000 or more. Also released were a [...]
On 12 February 2009 the Assistant Treasurer released for public comment the transitional and consequential provisions and associated explanatory material to complement the Tax Agent Services Bill 2008, which was introduced into Parliament on 13 November 2008. Together, these Bills give effect to the new regulatory regime for the provision of tax agent services. The [...]
The Government’s forward work program, setting out the consultation it plans for announced tax measures and indicating the legislation it plans to introduce in the 2009 Autumn sittings, was released by the Assistant Treasurer on 12 February 2009. The Government is to publish a forward work program for announced tax measures at the start of [...]
On 6 February 2009 the Assistant Treasurer announced that the Government proposes to amend the GST law, with retrospective effect from 1 July 2000, to ensure that representatives of incapacitated entities are liable for GST on post-appointment transactions. These amendments will reverse the decision of the Federal Court in DFCT v PM Developments Pty Ltd [...]
One element of the Government’s National Building and Jobs Plan announced by the Prime Minister and the Treasurer on 3 February 2009 is an investment allowance regime that increases and extends the investment allowance announced on 12 December 2008. The known details of the new investment allowance regime are summarised below. Time periods There are [...]
On 30 January 2009, the Assistant Treasurer announced the signing of a Tax Information Exchange Agreement (“TIEA”) and an agreement for the allocation of taxing rights over certain income of individuals between Australia and the Isle of Man. The TIEA will provide for exchange of information, on request, for both civil and criminal tax matters. [...]
The Minister for Superannuation and Corporate Law has released the Treasury discussion paper on the Government’s measure to provide an optional CGT roll-over for superannuation funds that merge with other complying funds. Under the measure (which was announced by the Minister on 23 December 2008), optional CGT roll-over will be available for capital losses [...]
On 18 December 2008, the Assistant Treasurer announced that the GST law will be changed to ensure that no customers will be charged GST on automatic teller machine transaction fees when ATM owners start charging ATM users directly for withdrawals from 3 March 2009. ATM transactions will be input taxed supplies for all ATM owners. [...]
On 12 December 2008, the Treasurer announced the Government’s decision to introduce a 10% temporary investment allowance. The investment allowance will be available for businesses which start to hold an asset under a contract entered into after 12.01 am AEDT 13 December 2008 and before the end of June 2009 or start to construct [...]
On 12 December 2008, the Treasurer announced that the quarterly PAYG instalment payable by small business entities on 21 January 2009 or 28 February 2009 will be reduced by 20%. The reduction does not apply to taxpayers who calculate their instalments based on the instalment rate notified by the ATO. Their payments will automatically [...]
On 26 November 2008, the Assistant Treasurer released a discussion paper to provide a point of reference for public submission on the Government’s 2008 Budget commitment to improve the integrity of prescribed private funds (PPFs). It was announced in the Budget that the Government would legislate guidelines to improve the integrity of PPFs and to [...]
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29 Sep 2010
Amending Bills reintroduced
Several amending Bills, including the Tax Laws Amendment (2010 Measures No 4) Bill 2010, were reintroduced into Federal ..
15 Sep 2010
Freezing orders continued
The Federal Court has continued freezing orders against five foreign corporations which had never filed tax returns in A..
31 Aug 2010
Penalty for recklessness
The Federal Court has allowed the Commissioner's appeal against a decision of the AAT and held that the taxpayer had fai.. |