Treasury Laws Amendment (OECD Multilateral Instrument) Bill 2018 – to give force of law to the MLI in Australia, which in turn defines when it comes into force and takes effect

On Wednesday, 28 March 2018, the Government introduced the Treasury Laws Amendment (OECD Multilateral Instrument) Bill 2018 House of Representatives. The effect of this Bill will be to amend the International Tax Agreements Act 1953, to give the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (‘Multilateral Convention‘ or ‘MLI‘)…

Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No 2) Bill 2018 – CGT changes – excluding non-residents from ‘main residence’ exemption; avoiding double counting for Div 855 ‘principal asset’ test; additional 5% discount for ‘low cost housing’

The Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No 2) Bill 2018 was introduced in the House of Reps on Thur 8.2.2018. On 15.2.18, the Bill was referred to the Senate Economics Committee, for report by 23 March 2018. On 1 March 2018, the Bill passed the Lower House, without amendment. It will…

Labor’s proposal to abolish refunds of unused franking tax off-sets & subsequent exemption for pensioners – protests from SMSFs and self-funded retirees continue

On  13 March 2018, the Opposition Leader: Bill Shorten announced that a Labor Government would, if elected (and the Senate permitted), abolish cash ‘refunds’ of excess dividend imputation credits for individuals and superannuation funds. On 27 March 2018, the Treasurer (Chris Bowen) ameliorated this measure by exempting pensioners and pensioner SMSFs (what they call the…

Treasury Laws Amendment (Enhancing Whistleblower Protections) Bill 2017 – Senate Economics Legislation Committee Report: pass it, review its operation later (and still no ‘bounty’)

On 22 March 2018 the Senate Economics Legislation Committee delivered its report on the Treasury Laws Amendment (Enhancing Whistleblower Protections) Bill 2017. Despite a diversity of views, the Committee cited a consensus that the Bill was a step forward and should be passed [Recommendation 3, para 3.93]. But also said that a review of the…

Treasury Laws Amendment (Income Tax Consolidation Integrity) Bill 2018 – proposing 6 measures: the ‘deductible liabilities measure’; the ‘deferred tax liabilities measure’; the ‘securitised assets measure’; the ‘churning measure’; the ‘TOFA measure’ and the ‘value shifting measure’

On 15 February 2018, the Government introduced the Treasury Laws Amendment (Income Tax Consolidation Integrity) Bill 2018 into the House of Representatives, it passed the Lower House, without amendment, on 28 February 2018 and passed all stages on 22 March 2018. There are around 12,000 tax consolidated groups in Australia, including the majority of the largest businesses.…

EU proposing to ‘go it alone’, in taxing ‘digital’ services, whilst waiting for OECD/G20 multi-lateral initiatives to tax these services

On 21.3.18, the European Commission proposed new rules to tax digital business activities – ‘going it alone’, ahead of any consensus from the OECD/G20. In response to this, the Australian Treasurer was reported as saying: ‘that Australia, like other G20 nations, might go it alone with measures to tax digital economy companies, like Uber, because…

DCT v Rennie Produce (Aust) Pty Ltd (in liq) – ATO s355-10 (old s264) notice to produce documents ‘trumps’ liquidator’s “Harman obligation” not to use documents produced, under other proceedings, for another purpose

On 20 March 2018, the Full Federal Court has held that the “Harman obligation” did not excuse a liquidator from complying with an ATO notice “to produce documents”, under  under s 353-10, Sch 1 TAA (which superseded the old s264 of the ITAA36). Failure to comply with such a notice, if not constrained by law, is an offence.…

Product Ruling PR 2018/4 – Perpetual WealthFocus Fund; on electing into the ‘Attribution Managed Investment Trust (AMIT) regime – ‘single unit’ structure respected for CGT purposes

On 21.3.2018, the ATO issued a product ruling and an addendum to a 2015 product ruling, for the Perpetual WealthFocus Investment Advantage Fund. This was prompted by the Fund electing into  the Attribution Managed Investment Trust (AMIT) regime from the 2017-18 income year under Part 3-25 of the ITAA97 (Divisions 275 & 276). The fund…