Daily Archives: January 4, 2020

LCR 2019/5 – 27.5% corporate tax rate only for ‘base rate entities’ depending on ‘base rate passive income’ (s23AA & s23AB of Rates Act)

On Fri 13.12.19, the Commissioner released Law Companion Ruling LCR 2019/5, which addresses the operation of the Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Act 2018, which in turn, amended the Rates Act, to change access to the lower 27.5% corporate tax rate. See below for a summary of this Ruling. [Tax Month…

Law Institute of Victoria’s ‘Taxation & Revenue Committees’ very satisfying 2019 activities – Chair’s report

The Law Institute of Victoria’s (LIV’s) ‘Taxation and Revenue Committee’ reviewed it’s active calendar 2019, with a certain amount of pride. See below for a summary of those activities. [Tax Month – December 2019]

PS LA 2019/D2 – Draft Practice Statement on ATO staff applying ‘general anti-abuse rules’ (purpose tests) in Australia’s DTAs and the MLI

On Mon 16.12.2019, the Commissioner released Draft Practice Statement Law Administration PS LA 2019/D2 – Administering general anti-abuse rules, such as a principal or main purposes test, included in any of Australia’s tax treaties and in the Multi-Lateral Instrument (MLI). See below for a summary of this draft PSLA and the consultation process. [Tax Month –…

U.S.-China trade deal “totally done,” will expand U.S. exports – Lighthizer

WASHINGTON, Dec 15 (Reuters) – The “phase one” U.S.-China trade deal reached on Friday is “totally done” despite the need for translation and it will nearly double U.S. exports to China over the next two years, U.S. Trade Representative Robert Lighthizer said on Sunday. See below for more of the article. [Tax Month – December…

Customs Tariff Amendment (Peru-Australia Free Trade Agreement Implementation) Regulations 2019 – rules for granting preferential tariff rates for goods imported from Peru under FTA

The Customs Tariff Amendment (Peru-Australia Free Trade Agreement Implementation) Regulations 2019 were registered on 13 December 2019. They amend the Customs Tariff Regulations 2004 to prescribe goods, as required in new Sch 6A to the Customs Tariff Act 1995, inserted by Sch 1 to the Customs Tariff Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Act 2019. See related TT…

2019-20 MYEFO released – significant revenue write-downs, surpluses remain, 2.25% growth in 2019/20, black economy measures, mismatch measures, eligible rollover fund measures and more ‘tax clinic’ funding

On Monday 16.12.19, the Treasurer released the 2019-20 Mid-Year Economic and Fiscal Outlook (MYEFO). See below for a summary of the tax related issues in the MYEFO. [Tax Month – December 2019]

Legislation announced to progressively close down ‘eligible rollover funds’ by 30.6.21 – hastening the Productivity Commission’s recommendation that this be done in 3 years

In a joint media release, on 13.12.19, the Treasurer (Josh Frydenberg) and Assistant Minister for Superannuation, Financial Services and Financial Technology  (Jane Hume) announced that the Government would introduce legislation to facilitate the exit of eligible rollover funds (ERFs) from the industry by 30 June 2021 and allowing the Australian Taxation Office (ATO) to reunite amounts…