Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017 – progressive reduction in corporate tax rate (to 25%) for $50m+ turnover companies, finally ‘scuttled’ in the Senate

Tax Month - August 2018

On Wednesday 22 August 2018, the Senate (Pauline Hanson, in particular) refused to pass the Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017. This is the Bill that would have progressively increased the turnover threshold, to apply the lower 27.5% corporate tax rate to all companies, and then to step down the 27.5%…

PR 2018/9 & 10 – [9] Tax consequences for an Owner entering into a concurrent lease with Future Rent Pty Ltd; [10] Tax consequences for a Participant in an urBau joint venture project

Tax Month - August 2018

The ATO issued two Product Rulings on Wed 22.8.2018: PR 2018/9 – Tax consequences for an Owner entering into a concurrent lease with Future Rent Pty Ltd. This scheme involves a concurrent lease with Future Rent Pty Ltd over a property that is subject to a residential tenancy agreement. The ruling treats the rental prepayments…

CR 2018/36 & 37 – [36] St George channel scheme – receipt of membership interests in Mallawa Irrigation Limited; [37] FBT: employers using the eROAD System for car log book and odometer records car records

Tax Month - August 2018

The ATO issued two Class Rulings on Wed 22.8.2018: CR 2018/36 – St George channel scheme – receipt of membership interests in Mallawa Irrigation Limited. It states that these interests are received on capital account and that the first element of their cost base is nil. DATE OF EFFECT: 1 July 2017 to 30 June 2019; and CR 2018/37…

GSTR 2018/1 – GST: supplies of real property that are ‘connected with’ Australia – including rights to occupy a hotel in Australia, created by a foreign tour operator (via the local hotel operator)

Tax Month - August 2018

On Wed 22.8.18, the ATO issued GST Ruling GSTR 2018/1, which sets out the ATO view on when supplies of ‘real property’ are ‘connected with the indirect tax zone’ (ie Australia) under s 9-25(4) of the GST Act. GSTR 2018/1 states that a supply of real property ‘is connected with the indirect tax zone’ [broadly Australia]…