John Morgan is a tax specialist lawyer of more than three decades experience now practicing at the Victorian Bar - w: www.FJMtax.com e: f.john.morgan@vicbar.com.au

Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2017 – 12 month extension of period for 100% depreciation deduction of $20,000 1st element or 2nd element asset cost amounts, in any one year – to 30 June 2018

Tax Month - June 2017

The Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2017 passed all stages without amendment and effectively await Royal Assent, after having been passed by the Senate 15.6.2017. The Bill amends the $20,000 accelerated depreciation rules, for 12 months to 30 June 2018 (s328-180 ITAA 1997 & s328-180 Transitional Act). Section 328-180 provides a 100%…

TD 2017/16 – Commissioner publishes the next indexed ‘CGT improvement threshold’ for the purposes of post-CGT improvements to pre-CGT land being a separate asset under s108-70 & s108-75

Tax Month - June 2017

The ATO issued a Determination: TD 2017/16 on Wed 14.6.2017, advises that the CGT improvement threshold for the 2017-18 income year is $147,582 (up from $145,401 in 2016-17). The threshold is changed to take account of inflation. The improvement threshold is relevant to s 108-70 of the ITAA 1997, which treats an improvement to a pre-CGT asset,…

Country by Country (CbC) Reporting – EU Parliamentary Committee resolves that Big Multinationals (750m Euro plus global turnover) must PUBLICLY report tax affairs in each country – including countries outside the EU

Tax Month - June 2017

The Economics and Legal Affairs Committees of the European Parliament on 12 June 2017 voted to make multinational companies, with an annual net turnover of €750 million and above, publicly report their activities, structures and tax payments on a country-by-country basis. The draft report was approved by 38 votes to 9 votes, with 36 abstentions. The result, if…

Privately owned and wealthy groups – the ATO lists the features that attract its audit and investigation interest

Tax Month - June 2017

Many advisers might have some idea what attracts the ATO’s attention to privately owned and wealthy groups, but now it has uploaded its own list of features on its, website, which comprise the following behaviours and characteristics may attract its attention: tax or economic performance is not comparable to similar businesses; low transparency of tax affairs; large,…

Treasury Laws Amendment (GST Low Value Goods) Bill 2017 – Bill to impose Australian GST on foreign vendors of sub-$1,000 goods passes Lower House but Labor flags amendments to delay its introduction 1 year whilst the Productivity Commission investigates other methods of levelling the GST playing field

Tax Month - June 2017

On Wed 14.6.17, the Treasury Laws Amendment (GST Low Value Goods) Bill 2017  passed by the House of Reps without amendment and now moves to the Senate. The Bill proposes to impose GST on supplies of imported low-value goods, ie those worth less than A$1,000. On the same day, the Labor Party flagged it will…

Hacon v C of T (Cwth) – the Court held that the Commissioner’s decision not to rule because he needed more information (which he did not go on and ask for) was an error of law and was quashed

Tax Month - June 2017

On Thur 13.6.2017, the Federal Court held that the Commissioner’s decision to decline to make a private ruling, requested by the taxpayers, be quashed. The case essentially involved the inter-generational transfer of a family grazing business. The taxpayers were a company and 3 related individuals. The individuals were the sons of the late Mr Walter Hacon.…

Multilateral Treaty Convention – signed by Australian Minister and 67 other jurisdictions, 30 of which will modify Australia’s DTT’s with them – Treasury summarises Australia’s position

Tax Month - June 2017

Australia has signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the Convention). The Minister for Trade, Tourism and Investment, the Hon Steven Ciobo MP, signed the Convention for Australia at a ceremony hosted by the Organisation for Economic Cooperation and Development (OECD) in Paris on 7…

LCG 2017/D5 – when ‘re-deliverers’ (and which re-deliverers) are liable for Australian GST on the supply of low-value imported goods

Tax Month - June 2017

This draft Law Companion Guide: LCG 2017/D5 was released by the ATO on Thur 8.6.2017. It explains the measures in the Treasury Laws Amendment (GST Low Value Goods) Bill 2017 that seek to make redeliverers responsible for GST on offshore supplies of low-value goods. This Bill, which is still before the House of Reps, imposes…

LCG 2017/D4 – when an ‘electronic distribution platforms’ operator is liable for Australian GST under the ‘Netflix’ intangible supplies laws and the low value import laws

Tax Month - June 2017

This draft Law Companion Guide LCG, 2017/D4 was released on Thur 8.6.2017. It  describes how the Commissioner intends to apply: the “Netflix tax” rules in the Tax and Superannuation Laws Amendment (2016 Measures No 1) Act 2016 (applicable from 1 July 2017) and the imported low-value goods measures in the Treasury Laws Amendment (GST Low Value Goods) Bill…