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…

New Disaster Recovery Allowance Bill passes Reps – including provisions to make it taxable, but subject to rebates to keep the rate low [25]

The Social Security Legislation Amendment (Disaster Recovery Allowance) Bill 2013 was passed by the House of Reps on 15 May 2013 without amendment and then introduced in the Senate (it will be debated there after the Senate resumes on 17 June 2013). It proposes to create a new payment, the Disaster Recovery Allowance, a fortnightly income support payment for…

Shipping reform tax incentives – specification of kinds of vessels that are not exempt and thus eligible for incentives [22]

The Shipping Reform (Tax Incentives) Act 2012 – Subsection 10(5) specification of kinds of vessels was registered on the Federal Register of Legislative Instruments Wed 15.5.2013. It specifies 6 additional kinds of vessels which are not to be “excluded vessels”, and therefore would be eligible for tax concessions under the Shipping Reform (Tax Incentives) Act…

*Tax and Super Amendment (No 1) Bill amended re loss carry-back; SMSF related party acquisition measures deleted [15]

The Tax and Superannuation Laws Amendment (2013 Measures No 1) Bill 2013 was passed by the House of Reps late on Wed 29.5.2013 with 4 Government amendments concerning the loss carry-back measures and to delete the SMSF related party acquisition measures. It now moves to the Senate. Loss carry-back – The Bill proposes the insertion…

*General Anti-Avoidance Rules (Part IVA) and our ‘transfer pricing’ provisions – Bill passes House of Representatives [24]

The Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013 was passed by the House of Reps today on Thur 16.5.2013 without amendment and was then introduced in the Senate where debate was adjourned. The Bill proposes amendments to Pt IVA of the ITAA 1936 to ensure its effective operation as the…