TR 2019/D7 – new draft ruling on deductions for employees’ transport expenses – overlapping TR 2018/D6 for FBT purposes (Comments due 28 Feb 2020)

On Fri 13.12.19, the ATO released Draft Rluning: TR 2019/D7, which  sets out when an employee can deduct transport expenses under s 8-1 of the Income Tax Assessment Act 1997 (ITAA97).  This includes the cost of travel by airline, train, taxi, car, bus, boat or other vehicle. See below for a summary of this draft ruling.…

LCR 2019/5 – 27.5% corporate tax rate only for ‘base rate entities’ depending on ‘base rate passive income’ (s23AA & s23AB of Rates Act)

On Fri 13.12.19, the Commissioner released Law Companion Ruling LCR 2019/5, which addresses the operation of the Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Act 2018, which in turn, amended the Rates Act, to change access to the lower 27.5% corporate tax rate. See below for a summary of this Ruling. [Tax Month…

PS LA 2019/D2 – Draft Practice Statement on ATO staff applying ‘general anti-abuse rules’ (purpose tests) in Australia’s DTAs and the MLI

On Mon 16.12.2019, the Commissioner released Draft Practice Statement Law Administration PS LA 2019/D2 – Administering general anti-abuse rules, such as a principal or main purposes test, included in any of Australia’s tax treaties and in the Multi-Lateral Instrument (MLI). See below for a summary of this draft PSLA and the consultation process. [Tax Month –…

Customs Tariff Amendment (Peru-Australia Free Trade Agreement Implementation) Regulations 2019 – rules for granting preferential tariff rates for goods imported from Peru under FTA

The Customs Tariff Amendment (Peru-Australia Free Trade Agreement Implementation) Regulations 2019 were registered on 13 December 2019. They amend the Customs Tariff Regulations 2004 to prescribe goods, as required in new Sch 6A to the Customs Tariff Act 1995, inserted by Sch 1 to the Customs Tariff Amendment (Growing Australian Export Opportunities Across the Asia-Pacific) Act 2019. See related TT…

Legislation announced to progressively close down ‘eligible rollover funds’ by 30.6.21 – hastening the Productivity Commission’s recommendation that this be done in 3 years

In a joint media release, on 13.12.19, the Treasurer (Josh Frydenberg) and Assistant Minister for Superannuation, Financial Services and Financial Technology  (Jane Hume) announced that the Government would introduce legislation to facilitate the exit of eligible rollover funds (ERFs) from the industry by 30 June 2021 and allowing the Australian Taxation Office (ATO) to reunite amounts…

Treasury Laws Amendment (Measures for Consultation) Bill 2019: hybrid mismatch rules – draft legislation for changes to ‘hybrid mismatch rules’ – Submissions by 24 Jan 2020

On Friday 13.12.19, Treasury released draft legislation and explanatory material for the announced changes to the ‘hybrid mismatch’ rules and 2 additional changes – called the Treasury Laws Amendment (Measures for Consultation) Bill 2019: hybrid mismatch rules.

See below for a summary of these drafts.

[Tax Month – December 2019]

ATO reminds taxpayers & agents that Partnership (‘Everett’) assignments since 8 May 2018, returned with ‘small business CGT relief’ will need amendment

On 16 December 2019, the ATO  reminded tax agents (and taxpayers) that they might have to amend their clients (their own) tax returns if they have claimed ‘small business CGT relief, under an ‘Everett’ assignment of a partnership interest, after amending legislation was past. See below for further details about the reminder. [Tax Month –…