Daily Archives: November 6, 2022

Australian Labor Budget (25.10.22) – ABUMs & DGR – AXED: TOFA changes; limited partnership CIVs; 3 yearly SMSF audit; $10k cash payments limit; no DGR for Chaplains – DEFERRED: SMSF relaxed residency – DGR for Indigenous constitutional recognition

Providing certainty on unlegislated tax and superannuation measures announced by the previous Government The Government announced that it will not proceed with the following ones of the previous Government’s ‘Announced But Un-enacted [tax and superannuation] Measures’ (ABUMs): The MYEFO 2013–14 measure that proposed to amend the debt/equity tax rules. The Federal Budget 2016–17 measure that…

Australian Labor Budget (25.10.22) – Tax Administration – added scrutiny: multinationals, large public businesses, private businesses, black economy, personal income tax, tax agents, business registers, directors identification numbers

Extend ATO compliance programs – Tax Avoidance Taskforce The Government will extend funding for the ATO Tax Avoidance Taskforce by around $200 million per year over a 4-year period from 1 July 2022. The Government will also extend the taskforce for a further year from 1 July 2025. Since 2016, the Government has provided the…

Australian Labor Budget (25.10.22) – International Tax – Thin cap (EBITDA); low tax intangibles; multinational transparency; crypto tax treatment; Iceland Treaty; Bhutan diplomatic exemptions

Multinational Tax Integrity Package – amending Australia’s interest limitation (thin capitalisation) rules The Government announced that it will amend the thin capitalisation rules to address risks to the corporate tax base arising from the use of excessive debt deductions. This measure will apply to income years commencing on or after 1 July 2023. The current…