The Government will make changes to the 2011-12 Budget measure in relation to the application of the scrip-for-scrip roll-over and small business concessions to trusts, superannuation funds and life insurance companies. In particular, the measure will ensure that the provisions concerning absolutely entitled beneficiaries, bankrupt individuals, security providers and companies in liquidation interact appropriately with…
The Government will remove the 50% CGT discount for non-residents on capital gains accrued after 7.30pm (AEST) on 8 May 2012. The CGT discount will remain available for capital gains that accrued prior to this time where non-residents choose to obtain a market valuation of assets as at 8 May 2012. Date of effect: The…
The Government announced that it will not proceed with the Tax Breaks for Green Buildings program. The program would have driven significantly higher cost abatement than that delivered by the carbon price. The Government estimates that the discontinuance of the program would increase revenue by $390m over the forward estimates period. Funding for the Department…
The Government has announced that the managed investment trust (MIT) final withholding tax rate will increase from 7.5% to 15%. This measure will return the withholding tax for MITs to the original level. The Treasurer said that the 15% rate is competitive with current rates applying in other countries, including the USA and Japan. Date…
The Government will clarify that limited recourse debt includes arrangements where the creditor’s right to recover the debt is effectively limited to the financed asset or security provided. This measure will ensure that tax deductions are not available for capital expenditure on assets that have been financed by limited recourse debt, to the extent that…
The Government will ensure that, on commencement of the Basel III capital reforms, certain capital instruments issued by authorised deposit taking institutions (ADIs) can be treated as debt for income tax purposes. This change will apply to certain Tier 2 regulatory capital instruments issued by ADIs and certain other related entities regulated by the APRA.…
The Government will ensure a more consistent tax treatment for bad debts between related parties irrespective of whether they are members of a tax consolidated group. This will be achieved by denying a tax deduction for a bad debt written off where the debtor is a related party not in the same tax consolidated group.…
The method of determining the taxable value of airline transport fringe benefits will be changed from stand-by value to market value. An airline transport fringe benefit may arise when an employee of an airline or travel agent is provided with free or discounted travel on a stand-by basis. The taxable value is currently the stand-by…
The Government announced that it would further reform the tax concession for living away from home allowances (LAFHA) and benefits by “better targeting it at people who are legitimately maintaining a second home in addition to their actual home for an initial period”. The changes would: limit access to the tax concession to employees who…
The Budget confirmed the Treasurer’s announcement on 6 May 2012 that the Government would allow businesses to carry-back losses. Mr Swan said the proposed changes would “allow businesses to ‘carry back’ their losses, to offset past profits and get a refund of tax previously paid on that profit”. The carry-back will be available to companies…
