Yearly Archives: 2017

*Tax Laws Amendment (2012 Measures No 2) Bill 2012 introduced to enlarge directors’ liability for company debts; and changes to the consolidation and TOFA rules [A2]

The Tax Laws Amendment (2012 Measures No 2) Bill 2012 was introduced into the House of Reps on Thur 24.5.2012. It contains the following amendments: Directors’ penalty regime – strengthens directors’ obligations to cause their company to comply with its existing PAYG withholding and superannuation guarantee requirements by: ▪       extending the director…

*Tax Laws Amendment (2012 Measures No 1) Bill 2012 – passed House of Representatives [A1]

The following Bills were all passed by the House of Reps on Wed 9.5.2012, without amendment and now move to the Senate: Tax Laws Amendment (2012 Measures No 1) Bill 2012. The Bill contains amendments concerning: Anstis amendments; CGT trading stock exemption for super funds; phasing out dependent spouse tax offset; tax exemption for payments…

No GST on Government appropriations [B24]

The Government will insert a regulation-making power in the GST law to prescribe that certain payments between government-related entities are not subject to GST. This extends the earlier measure contained in the Mid-Year Economic and Fiscal Outlook 2011-12. It is anticipated that the change will have no revenue impact. Date of effect:            The change will…

Higher concessional contributions cap for over 50s deferred to 1 July 2014 [B23]

The proposed higher concessional contributions cap for individuals aged 50 and over with superannuation balances below $500,000 will be deferred from 1 July 2012 to 1 July 2014. Accordingly, all taxpayers, regardless of age, will be subject to a concessional contributions cap of $25,000 for the 2012-13 and 2013-14 income years. In 2014-15, the general…

Superannuation contributions tax to double to 30% for incomes above $300,000 [B22]

From 1 July 2012, individuals with income greater than $300,000 will have the tax concession on their concessional contributions reduced from 30% to 15% (excluding the Medicare levy). This means that the tax rate on concessional contributions will effectively double from 15% to 30% for very high income earners from 1 July 2012. Currently, the…

Minor changes to previously announced deceased estate amendments [B21]

The Government will make minor amendments to the 2011-12 Budget measure to ensure the proper functioning of the CGT provisions relating to deceased estates. In particular, the proposed changes: reduce compliance costs involved with the integrity provisions by ensuring that the deceased’s tax return does not need to be amended as the taxing point will…

Changes to compensation payments and insurance policy exemption [B20]

The Government will make minor extensions to the CGT exemptions for certain compensation payments and insurance policies. This measure will disregard CGT consequences where a taxpayer receives compensation, damages or certain insurance proceeds indirectly through a trust. This will ensure that the taxpayer has the same CGT outcome as a taxpayer who receives such proceeds…

Revenue asset and trading stock roll-overs for interposing a company [B19]

The Government will broaden the revenue asset and trading stock roll-overs that apply to the exchange of interests in a company or unit trust for shares in another company. This measure ensures that these revenue asset and trading stock roll-overs will be available for all interests that qualify for the general conditions of each of…

Application of scrip-for-scrip roll-over and Small Business Concessions to trusts, super funds etc [B18]

The Government will make changes to the 2011-12 Budget measure in relation to the application of the scrip-for-scrip roll-over and small business concessions to trusts, superannuation funds and life insurance companies. In particular, the measure will ensure that the provisions concerning absolutely entitled beneficiaries, bankrupt individuals, security providers and companies in liquidation interact appropriately with…

Removal of CGT discount for non-residents [B17]

The Government will remove the 50% CGT discount for non-residents on capital gains accrued after 7.30pm (AEST) on 8 May 2012. The CGT discount will remain available for capital gains that accrued prior to this time where non-residents choose to obtain a market valuation of assets as at 8 May 2012. Date of effect:            The…