Tax Laws Amendment (Small Business Restructure Roll-over) Bill 2016 – now law – sub-$2m turnover businesses can now roll from any structure to any structure with no tax consequences

The Tax Laws Amendment (Small Business Restructure Roll-over) Bill 2016 passed the House of Reps without amendment on 22 February 2016 and likewise the Senate on 29 February 2016. The Bill proposes to amend the ITAA 1997 to provide greater flexibility for small businesses to change their legal structure. The Bill effectively seeks to allow small businesses to…

National register of ‘Water Access Rights’ – Background from Treasury Consultation Document

On Monday 22 February 2016, Treasury issued a consultation paper on the proposed introduction of a national register of foreign ownership of ‘water access rights’. The following are extracts from this paper. Introduction to the register of foreign ownership of water access entitlements 1.1.  On 25 November 2015 the Australian Government passed reforms to strengthen the…

Water access entitlements – proposed national register of foreign ownership – Treasury consultation

On Mon 22.2.2016, Treasury issued a consultation paper seeking views on a proposed national register of foreign ownership of water access entitlements (WAEs). As part of the foreign investment framework reform package, the Government agreed to introduce legislation for the establishment of a register of foreign ownership of WAEs before 1 December 2016. The purpose of the proposed register is…

Standard tax compliance undertakings that Foreign investors must give as a condition of approval to make local acquisitions

On 22 February 2016, the Treasurer announced that foreign investors will have to give tax compliance undertakings as a condition of Foreign Investment Review Board (FIRB) approval. The standard conditions are set out below. Standard conditions to be met for an application not to be against the national interest The applicant must comply with Australia’s…

Foreign investors must now satisfy tax compliance obligations as a condition of FIRB approval: Treasurer

On 22 February 2016, the Treasurer issued a press release announcing tax compliance obligations would be a condition of applications of foreigners to make investments in Australia. The Turnbull Government will apply new requirements on foreign investment applications to ensure multinational companies investing in Australia pay tax here on what they earn, Treasurer the Hon.…

Tax and Superannuation Laws Amendment (2015 Measures No. 6) Bill 2015 – becomes law – CGT changes on earn outs and 10% non-final CGT withholding from non-resident vendors sale proceeds

The Tax and Superannuation Laws Amendment (2015 Measures No 6) Bill 2015 has, Mon 22.2.2016, passed the Senate without amendment and, on 25.2.2016, received Royal Assent as Act No 10 of 2016. The Bill contains the following amendments: Amends the ITAA 1997 to change the CGT treatment of the sale and purchase of businesses involving certain earnout rights – rights to…

GST and cross-border supplies including digital downloads – summary of Bill introduced

On 10 February 2016 the Treasurer introduced Tax and Superannuation Laws Amendment (2016 Measures No.1) Bill 2016 into Parliament. The Explanatory Memorandum to the Bill can be accessed here. The Bill contains measures initially flagged in the Budget. The measures have been the subject of a detailed consultation process and two forms of Exposure Draft have been published for…

Capital works (Div 43) deductions – proposed new ruling on ‘alteration, extension or improvement’ and its interaction with other deduction provisions

  The purpose of the new ruling is to assist taxpayers in understanding the meaning of the phrase ‘alteration, extension or improvement’ in the context of Division 43 of the Income Tax Assessment Act 1997 (ITAA 1997) to enable a taxpayer to determine whether there is an extension, alteration or improvement for the purposes of the capital works…

General purpose financial statements – significant global entities must lodge with ATO if not lodged with ASIC: ATO will consult on procedures

On 3 December 2015 the Senate amended the Tax Laws Amendment (Combating Multinational Tax Avoidance) Bill 2015 to require corporate tax entities that are significant global entities to give the Commissioner a general purpose financial statement if they do not lodge one with the Australian Securities and Investments Commission (ASIC). The financial statement must be for the…