On 20.9.2018, the Government introduced the Treasury Laws Amendment (2018 Measures No 5) Bill 2018 in the House of Reps

It proposes the following amendments:

  • AMIT technical amendments – would amend the TAA, ITAA 1997, ITAA 1936, and other Acts to make a number of technical refinements to the income tax law so that the new tax system for MITs operates as intended. For example:
    • it would allow a MIT, with a single unitholder, that is a specified widely-held entity, to access the AMIT regime;
    • it would clarify that, in relation to an amount that is a discount capital gain, that is not attributed to members, the trustee of an AMIT is liable to pay income tax on the amount, as though it was not a discount capital gain.
    • DATE OF EFFECT: The amendments would generally apply in relation to the 2018-19 income year and later income years.
  • Deductible gift recipients – amends the ITAA 1997 to update the list of specifically listed DGRs. DATE OF EFFECT: Various.
  • Extending DGR status to entities promoting Indigenous languages – amendments provide that entities that promote Indigenous languages may be endorsed as a DGR. DATE OF EFFECT: would commence from 1 July 2019.
  • IP rights –  would repeal subsection 51(3) of the Competition and Consumer Act 2010 and subsection 51(3) of Schedule 1 to that Act (the Competition Code). The amendments would remove the exemption for conditional licensing or assignment of IP rights such as patents, registered designs, copyright or eligible circuit layout rights from prohibitions on restrictive trade practices. DATE OF EFFECT: The day after the end of the period of 6 months beginning on the day the Bill receives the Royal Assent.

FJM 22.9.18

[APH website: Bills Tracker, Bill, EM; LTN 182, 20/9/18; Tax Month – September 2018]

 

Comprehension questions (answers available)

  1. Would an MIT, with a single widely held unit holder, be able to access the AMIT regime?
  2. Will this start on 1 July 2019?
  3. Will ‘deductible gift recipient’ (DGR) status be extended to entities promoting indigenous languages?
  4. Will this commence from 1 July 2019?
  5. Is there a non-tax change, subjecting certain IP licensing to prohibitions on restrictive trade practices (ie. removing the exemption)?
  6. Will this commence from 1 July 2019?

[Answers:1.yes;2.no(2018/19year);3.yes;4.yes;5.yes;6.no(6monthsAfterRoyalAssent)]

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