The Government will make minor amendments to the 2011-12 Budget measure to ensure the proper functioning of the CGT provisions relating to deceased estates. In particular, the proposed changes: reduce compliance costs involved with the integrity provisions by ensuring that the deceased’s tax return does not need to be amended as the taxing point will…
The Government will make minor extensions to the CGT exemptions for certain compensation payments and insurance policies. This measure will disregard CGT consequences where a taxpayer receives compensation, damages or certain insurance proceeds indirectly through a trust. This will ensure that the taxpayer has the same CGT outcome as a taxpayer who receives such proceeds…
The Government will broaden the revenue asset and trading stock roll-overs that apply to the exchange of interests in a company or unit trust for shares in another company. This measure ensures that these revenue asset and trading stock roll-overs will be available for all interests that qualify for the general conditions of each of…
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.…