Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2018 now law – lower tax rate (currently 27.5%) available to all companies under the turnover threshold unless they have at least 80% passive income (as defined)

Tax Month - August 2018

The Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017  began a long passage to become law, when it was introduced into the Lower House on 18.10.2017, passed the Lower House on 8.2.2018 (as a 2018 Bill), passed the Senate on 23.8.2018 and received Royal Assent, as Act No. 94 of 2018, on 31.8.2018.…

Board of Tax – August 2018 CEO Update of Adelaide Meeting – small business tax concessions; FBT compliance costs; residency rules for individuals; Tax Transparency developments; Sounding Board – ‘policy lite’, revenue neutral gains

Tax Month - August 2018

On 22 August 2018, the CEO of the Board of Taxation, Karen Payne, released her latest CEO update covering the Board’s recent meeting in Adelaide. The Board discussed the scope and direction of its current work program, including the following. A review of small business tax concessions. To date, the key themes emerging from the…

Gift Deductible Recipients (DGRs) – those not already registered with the ACNC will be required to do so by 1 July 2019 & certain ‘public fund’ requirements will be abolished (consultation paper released)

Tax Month - August 2018

Whilst still Minister for Revenue and Financial Services, Kelly O’Dwyer announced the Government was taking action to deliver its package of reforms (announced 5.12.17) for the administration and oversight of organisations with Deductible Gift Recipient (DGR) status – broadly by requiring them to all register with the Australian Charities and Not-for-profits Commission (ACNC). Treasury released a…

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]…

PCG 2018/D6 – CGT – extension of the 2-year period for main residence exemption in deceased estates – favourable and unfavourable factors and ‘safe harbour’ for 12 month extension

Tax Month - August 2018

On Wed 22.8.2018, the ATO issued Draft Practical Compliance Guideline PCG 2018/D6. This relates to the operation of the 2 year rule in s118-195(1)(b), item 1, column 3, of the ITAA97. This provision deals with a dwelling that was the deceased’s main residence, at the date of death, and gives some latitude for that exemption to,…

PCG 2018/4 – When an Court appointed Executor or Administrator of a Deceased Estate will be treated as having ‘notice’ of a tax liability – safe harbour guidelines for distribution of the Estate without personal liability for tax

Tax Month - August 2018

On Wed 22.8.2018, the ATO issued Practical Compliance Guideline PCG 2018/4, which one might be forgiven for thinking was about thepersonal liability of a legal personal representative (LPR), of a deceased person’s estate, for the tax liabilities of the deceased, at the time of death. In fact, it is only about when the Commissioner will…

Unexplained Wealth Legislation Amendment Bill 2018 – relies on States referring powers for National Co-operative Scheme on the Proceeds of Crime

Tax Month - August 2018

The Unexplained Wealth Legislation Amendment Bill 2018 was introduced into the Lower House on 20 June 2018; was referred to the Senate Legal and Constitutional Affairs Legislation Committee on 28 June 2018, which reported on 14 August 2018; and moved to the Senate on 21 August 2018. It will amend the Proceeds of Crime Act 2002 (POC…