Tasmania: Duties Amendment (Motor Vehicle Industry Red Tape Reduction) Bill – broadening the exemption for ‘demonstrator’ and ‘courtesy’ cars

The Duties Amendment (Motor Vehicle Industry Red Tape Reduction) Bill 2016 (Tas) passed all stages without amendment on 15.9.2016 and awaits Royal Assent. The Bill will amend the Duties Act 2001 (Tas) to broaden the permitted use of demonstrator vehicles under the current duty exemption for new motor vehicles registered by licensed motor vehicle traders…

Budget Savings (Omnibus) Bill 2016 enacted (Act No. 55) – reduction in R&D offsets by 1.5% points: 45% to 43.5% and 40% to 38.5%

The Budget Savings (Omnibus) Bill 2016 received Royal Assent as Act No 55 of 2016 on 16.9.16, having passed the Senate without amendment the night before. The Bill implements measures announced in the 2016-17 Federal Budget and earlier Budget updates eg: introduces Single Touch Payroll (STP) reporting for substantial employers to automatically provide payroll and…

Victorian State Taxes – Objections lodged out of time – draft ruling on exercise of the Commissioner’s power (TAA.004v3)

The Taxation Administration Act 1997 (TAA) allows a taxpayer who is dissatisfied with an assessment (other than a compromise assessment) or certain decisions of the Commissioner of State Revenue (the Commissioner) to lodge a written objection with the Commissioner (see section 96 of the TAA). This includes an objection to an assessment of a tax liability…

TA 2016/11 –defeat the MAAL (s177DA) by inserting a partnership with an Australian minority partner (an ‘Australian entity’) as the distributor with the old foreign supplier as its agent (no change in operations)

On 15.9.16 the ATO issued a further Tax Alert: TA 2016/11 about arrangements is concerned will be ineffective to defeat the Multinational Anti-Avoidance Law (MAAL) in s177DA of the Income Tax Assessment Act 1936 (ITAA36). This is the third TA on MAAL avoidance this year, after TA 2016/2 about foreign and Australian entities swapping roles…

TA 2016/10 – Cross Border ‘Round Robin’ Financing Arrangements – funding an overseas entity which (indirectly) returns the funds with ‘debt deductions’

We are reviewing cross-border round robin type arrangements that involve funding of an overseas entity or operations by an Australian entity, where the funds are subsequently provided back to the Australian entity or its Australian associate in a manner, which purportedly generates Australian tax deductions while not generating corresponding Australian assessable income. One example of…

Taxation and Related Legislation (Miscellaneous Amendments) Bill 2016 – amendments to Payroll Tax (owner drivers); Duties (vesting of dutiable property); and Land Tax (nil thresholds for clubs etc.)

The Taxation and Related Legislation (Miscellaneous Amendments) Bill 2016 (Tas) on Wed 14.9.2016, passed the Tasmanian House of Assembly without amendment and now moves to the Legislative Council. It proposes to amend the following Tasmanian Acts: the Payroll Tax Act 2008; the Duties Act 2001; the Land Tax Act 2000; the First Home Owner Grant…

Tax and Superannuation Laws Amendment (2016 Measures No 2) Bill 2016 introduced – Statutory Remedial Power; Averaging; Luxury Car Tax

The Assistant Treasurer introduced the Tax and Superannuation Laws Amendment (2016 Measures No 2) Bill 2016 in the House of Reps on Wed 14.9.2016. It contains the following amendments: REMEDIAL POWER: proposes to establish a Remedial Power for the Commissioner of Taxation to allow for a more timely resolution of certain unforeseen or unintended outcomes…

Interest penalty rates for 1 October to 31 December 2016 – GIC: 8.75% and SIC: 4.76% (with summary of when they apply)

The ATO has advised that the general interest charge (GIC) rate, shortfall interest charge (SIC) and related rates, for the second quarter of the 2016-17 income tax year (1 October 2016 to 31 December 2016) is as follows: GIC rate is 8.76% ie 90 day BAB rate 1.76% + 7% uplift factor. GIC daily compounding rate is 0.02393443%. SIC…

Vic land tax: Vasiliades v Comr of State Revenue – PPR exemption refused – no jurisdictional error in assessing in and then reassessments

On Fri 9.9.2016, the Victorian Supreme Court held there was no jurisdictional error by the Commissioner in issuing land tax reassessments for the 2009 to 2011 assessments years. The taxpayer sought judicial review of assessments made by the Commissioner for land tax payable by her in respect of a property for the 2009, 2010 and…