The Tax and Superannuation Laws Amendment (2016 Measures No 1) Regulation 2016 was registered on 15.4.2016. It makes consequential amendments the GST regs and the SIS regs to account for changes to the tax law to be made by the Tax and Superannuation Laws Amendment (2016 Measures No 1) Bill 2016 and already made the Tax and Superannuation Laws Amendment (2015 Measures No 6) Act 2016. Specifically:
- Schedule 1 to the Regulation extends the definition of “financial supply” in the GST regs so that it includes the supplies of bank accounts and superannuation interests by foreign financial institutions in circumstances where an equivalent supply by an Australian entity is an input taxed financial supply. These amendments will apply to tax periods commencing on or after 1 July 2017, but only if Sch 1 to the Tax and Superannuation Laws Amendment (2016 Measures No 1) Bill 2016 commences.
- Schedule 2 to the Regulation creates an exception to the superannuation contribution restrictions, allowing funds to accept a contribution of an amount of the proceeds of the sale of a business to which the small business CGT retirement concession applies. This is provided the sale involved an earnout right and the contribution would not have been affected by the contribution restrictions had it been made during the financial year in which the business was sold. These amendments apply in relation to look-through earnout rights created on or after 24 April 2015, consistent with the application of Sch 1 to the Tax and Superannuation Laws Amendment (2015 Measures No 6) Act 2016.
These changes address anomalies that would otherwise arise from the operation of the primary legislation.
[LTN 71, 15/4/16]