*Preventing “dividend washing” and doubling up of franking credits [6]

In the Budget, the Government announced it would close a loophole that enables sophisticated investors to engage in “dividend washing” (although known as dividend double-dipping). Currently, sophisticated investors can engage in “dividend washing” to, in effect, trade franking credits. This can result in some shareholders receiving two sets of franking credits for the same parcel…

*Changes to Australia’s foreign resident CGT regime – the ‘principal asset’ test in the ‘Taxable Australian Real Property’ or TARP Test [4]

This involves changes to the ”principal asset” test in Subdiv 855-A of the ITAA 1997 to ensure that indirect Australian real property interests are taxable if disposed of by a foreign resident. This change consists of 2 components. First, intercompany dealings between entities in the same tax consolidated group will not form part of the…

*Confirmation that self-education expenses to be capped at $2,000 pa [9]

The Budget Papers confirmed the Treasurer’s 13 April 2013 announcement (see April 2013 Developments) that the Government would introduce a $2,000 cap on tax deduction claims for work-related self-education expenses per person from 1 July 2014. The announcement was made “as part of a package of reforms to make a down-payment on the National Plan for School Improvement”. Taxpayers…

*Further extension of monthly PAYG instalments to big non-corporate entities [10]

The Government will extend the requirement to make monthly PAYG income tax instalments to include all large entities in the PAYG instalment system, including trusts, superannuation funds, sole traders and large investors. The Government has already announced that corporate tax entities with turnover of more than id=”mce_marker”bn will move to monthly PAYG instalments from 1 January 2014;…

Opposition Budget Reply: Opposition may not oppose and may keep all of Labor’s ‘savings’ – but will keep current tax thresholds and delay SGC rise [12]

The Leader of the Federal Opposition Tony Abbott gave his Budget Reply speech in the House of Reps on Thur 16.5.2013. He confirmed that a Coalition Government if elected would abolish the carbon tax and the mining tax. Mr Abbott said a Coalition Government would: keep the current income tax thresholds and the current pension…