Monthly Archives: February 2017

*FCT v Greenhatch – High Court refuses taxpayer’s application for leave to appeal – only the discounted portion of the capital gain is included in the beneficiary’s assessable income [35]

The High Court refused the taxpayer’s application for special leave to appeal on Fri 10.5.2013. The taxpayer was seeking leave to appeal against the decision of the Full Federal Court in FCT v Greenhatch [2012] FCAFC 84. The Full Federal Court had unanimously upheld the Commissioner’s appeal and overturned a decision of the AAT and…

*Protecting the corporate tax base from erosion and loopholes: Government releases discussion papers for consultation [32]

The Treasurer on Tues 14.5.2013, as part of the 2013 Federal Budget announced a package of reforms to protect the corporate tax base from erosion and loopholes. Treasury has released the following issues paper and proposals papers: – Removing the tax advantages available to multiple entry consolidated groupsthis Issues Paper outlines the process for developing…

*July 2015 increase in tax-free threshold to be [indefinitely] “deferred” [30]

The Minister for Climate Change, Industry and Innovation, Greg Combet, has announced that, due to the lower carbon price that is now expected to apply after 1 July 2015 [when Australia’s price would be determined by international markets], “there will be no additional anticipated increase in costs to households in 2015-16 with a lower carbon price forecast,…

Multinational profit shifting: Govt seeks comments on issues paper [27]

The Government on Fri 3.5.2013, released an Issues Paper – Implications of the Modern Global Economy for the Taxation of Multinational Enterprises seeking comments on the risks to the sustainability of Australia’s revenue base from multinational profit shifting and aggressive tax minimisation. The paper is available on the Treasury Website. The Assistant Treasurer said the…

*Baby Bonus changes: Bill amended [26]

The Family Assistance and Other Legislation Amendment Bill 2013 was passed by the House of Reps late on Wed 29.5.2013 with 8 Government amendments. Those amendments seek to implement the 2013-14 Budget announcement that the Government would replace the Baby Bonus from 1 March 2014 with the following arrangements: It will increase Family Tax Benefit Part A…

*Increase in Medicare levy and DisabilityCare Australia fund: draft legislation released [18]

The Government late on Mon 13.5.2013, released draft legislation proposing to implement the Government’s announcement to increase the Medicare levy from 1.5% to 2% of taxable income from 1 July 2014. The draft legislation will also establish the DisabilityCare Australia Fund. The Government said the draft legislation has been released so that it can be considered by…

*Medicare levy and DisabilityCare Bills [19]

Bills introduced The Medicare Levy Amendment (DisabilityCare Australia) Bill 2013 and the DisabilityCare Australia Fund Bill 2013 (along with a package of 10 other Bills) were introduced into the House of Reps on Wed 15.5.2013 [the morning after the Federal Budget]. On 1 May 2013, the Government announced that it would increase the Medicare levy by half…

New Disaster Recovery Allowance Bill passes Reps – including provisions to make it taxable, but subject to rebates to keep the rate low [25]

The Social Security Legislation Amendment (Disaster Recovery Allowance) Bill 2013 was passed by the House of Reps on 15 May 2013 without amendment and then introduced in the Senate (it will be debated there after the Senate resumes on 17 June 2013). It proposes to create a new payment, the Disaster Recovery Allowance, a fortnightly income support payment for…

Shipping reform tax incentives – specification of kinds of vessels that are not exempt and thus eligible for incentives [22]

The Shipping Reform (Tax Incentives) Act 2012 – Subsection 10(5) specification of kinds of vessels was registered on the Federal Register of Legislative Instruments Wed 15.5.2013. It specifies 6 additional kinds of vessels which are not to be “excluded vessels”, and therefore would be eligible for tax concessions under the Shipping Reform (Tax Incentives) Act…

*Tax and Super Amendment (No 1) Bill amended re loss carry-back; SMSF related party acquisition measures deleted [15]

The Tax and Superannuation Laws Amendment (2013 Measures No 1) Bill 2013 was passed by the House of Reps late on Wed 29.5.2013 with 4 Government amendments concerning the loss carry-back measures and to delete the SMSF related party acquisition measures. It now moves to the Senate. Loss carry-back – The Bill proposes the insertion…