*R&D tax incentive changes – draft legislation to limit the non-refundable tax offset to companies with aggregate assessable income under $20bn [29]

The Government on Tue 7.5.2013, released draft legislation designed to better target access to the R&D tax incentive. The proposed change would target support to companies with aggregate assessable income of less than $20 billion. The change would add a third tier to the R&D tax incentive [see EM extract below] whereby companies with aggregate…

*Australia-Switzerland tax treaty to be revised – negotiations concluded and will be signed soon (including access to Swiss Bank details) [31]

The Government has announced that negotiations for a revised Australia-Switzerland tax treaty have recently been concluded and that the governments of both countries will sign the revised treaty at the earliest opportunity, subject to the completion of their respective domestic approval processes. The Assistant Treasurer David Bradbury said the revised treaty would strengthen administrative assistance…

*Government announces it will not to proceed with planned increase to the Family Tax Benefit, Part A – due to commence 1 July 2013 [28]

Finance Minister Senator Penny Wong on Tue 7.5.2013, announced that the Government would not proceed with its 2012-13 Budget announcement to increase the maximum payment rate of FTB (Family Tax Benefit) Part A by $300 pa for families with one child and $600 pa for families with 2 or more children. For families receiving the…

*FCT v Greenhatch – High Court refuses taxpayer’s application for leave to appeal – only the discounted portion of the capital gain is included in the beneficiary’s assessable income [35]

The High Court refused the taxpayer’s application for special leave to appeal on Fri 10.5.2013. The taxpayer was seeking leave to appeal against the decision of the Full Federal Court in FCT v Greenhatch [2012] FCAFC 84. The Full Federal Court had unanimously upheld the Commissioner’s appeal and overturned a decision of the AAT and…

*Protecting the corporate tax base from erosion and loopholes: Government releases discussion papers for consultation [32]

The Treasurer on Tues 14.5.2013, as part of the 2013 Federal Budget announced a package of reforms to protect the corporate tax base from erosion and loopholes. Treasury has released the following issues paper and proposals papers: – Removing the tax advantages available to multiple entry consolidated groupsthis Issues Paper outlines the process for developing…

*July 2015 increase in tax-free threshold to be [indefinitely] “deferred” [30]

The Minister for Climate Change, Industry and Innovation, Greg Combet, has announced that, due to the lower carbon price that is now expected to apply after 1 July 2015 [when Australia’s price would be determined by international markets], “there will be no additional anticipated increase in costs to households in 2015-16 with a lower carbon price forecast,…

Multinational profit shifting: Govt seeks comments on issues paper [27]

The Government on Fri 3.5.2013, released an Issues Paper – Implications of the Modern Global Economy for the Taxation of Multinational Enterprises seeking comments on the risks to the sustainability of Australia’s revenue base from multinational profit shifting and aggressive tax minimisation. The paper is available on the Treasury Website. The Assistant Treasurer said the…

*Baby Bonus changes: Bill amended [26]

The Family Assistance and Other Legislation Amendment Bill 2013 was passed by the House of Reps late on Wed 29.5.2013 with 8 Government amendments. Those amendments seek to implement the 2013-14 Budget announcement that the Government would replace the Baby Bonus from 1 March 2014 with the following arrangements: It will increase Family Tax Benefit Part A…

*Increase in Medicare levy and DisabilityCare Australia fund: draft legislation released [18]

The Government late on Mon 13.5.2013, released draft legislation proposing to implement the Government’s announcement to increase the Medicare levy from 1.5% to 2% of taxable income from 1 July 2014. The draft legislation will also establish the DisabilityCare Australia Fund. The Government said the draft legislation has been released so that it can be considered by…