CR 2017/53 – Batlow Fruit Company Pty Ltd: a cooperative demutualised to take an injection of capital from a non-member – old membership interests can be rolled over and the new shares were not a dividend (deemed or otherwise)

Tax Month - August 2017

On Wed 16.8.2017, the Commissioner issued the following Class Ruling. CR 2017/53 – Batlow Fruit Company Pty Ltd: converted to a company registered under the Corporations Act 2001. It provides that members of Batlow Fruit Company Pty Ltd can choose the conversion roll-over under s124-520 of the ITAA 1997 (which is about a change of incorporation…

PAYG Withholding Variation for super beneficiaries who don’t quote their TFN (Final: F2017L01280) – rate on non-taxable component (NANE income) is varied to nil% – Commissioner registered instrument replacing 10 year old sunset predecessor

Tax Month - August 2017

On Wed 16.8.2017, the ATO released Draft PAYG Withholding Variation: Certain superannuation beneficiaries who have not quoted a tax file number (Draft OPS 2017/D5) and on Wed 27.9.2017, the Commissioner registered the final determination on the Federal Legislation Register as F2017L01280. It provides that the amount to withhold is varied to nil for that portion of…

BEPS Multilateral Tax Treaty Convention was tabled in Parliament together with a “National Interest Summary” (that provides an excellent summary of the effect and reasons for Australia’s position on this Convention)

Tax Month - August 2017

On Wed 16.8.17, the text, the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (signed by Australia in Paris on 7 June 2017) was tabled in both Houses of Federal Parliament, together with an assessment of Australia’s national interest in signing this Convention, together with the position it has taken in ‘reserving’…

SPR 2017/D – draft instrument setting out ‘Superannuation Providers Reporting’ (SPR) requirements relating to members’ $1.6m ‘Transfer Balance Cap’

Tax Month - August 2017

On Wed 16.8.2017, the ATO released Draft Reporting of event based transfer balance account information in accordance with the Taxation Administration Act 1953 – Draft SPR 2017/D2 (SPR = Superannuation Provider Reporting). It sets out the way in which superannuation providers in relation to superannuation plans, and life insurance companies in respect of certain life insurance…

Treasury Laws Amendment (2017 Measures No 4) Bill 2017 passes all stages – ITAA97 asset rollovers for mandatory transfers to a ‘MySuper’ fund

Tax Month - August 2017

The Treasury Laws Amendment (2017 Measures No 4) Bill 2017 passed the House of Representatives on Wed 16.8.2017, without amendment and similarly passed the Senate on Thursday 17.8.2017. It gained Royal Assent on 23 Aug 2017 as Federal Act No. 94 of 2017. The Bill contains the following amendments: Income tax relief for transfers within a fund…

Multi-Lateral Instrument (Treaty) – 8 Submissions made and released on the Treasury paper on Australia’s adoption of the OECD BEPS MLI

Tax Month - August 2017

Treasury received 8 submissions in relation to its December 2016 Consultation Paper on Australia’s adoption of the OECD BEPS Multilateral Instrument. The submissions, which have now been released by Treasury, were made by: Australian Private Equity & Venture Capital Association Limited Chartered Accountants Australia and New Zealand Corporate Tax Association Ernst & Young Insurance Council of Australia…

Labor’s bill to halve turnover threshold for public disclosure of private company tax information – it would reduce the $200m threshold to $100m (matching public companies)

Tax Month - August 2017

Labor Bill proposes lowering the turnover threshold, from $200,000 to $100,000 for public reporting of private company tax information (like public companies have their tax information reported by the Commissioner). On Monday 14.8.17, Senator Gallagher (ALP ACT, Manager of Opposition business in the Senate) introduced the Taxation Administration Amendment (Corporate Tax Entity Information) Bill 2017…

SA: Budget Measures Bill 2017 passes House of Assembly – 0.015% bank levy remains; some payroll tax rate reductions and Fed harmonisation; foreign ownership surcharge; ‘off the plan’ duty concessions extended but include a 5 year clawback and exclude foreign persons

Tax Month - August 2017

The Budget Measures Bill 2017 (SA) was passed by the SA House of Assembly on 10 August 2017 with 10 Government amendments and now moves to the Legislative Council. The amendments concern the foreign ownership surcharge. Where a resident person or trust acquires an interest in land only to later become a foreign person or trust within…