ASIC appoints liquidators to 17 abandoned companies, assisting 32 employees access up to $570k in unpaid entitlements (and to investigate reasons for their failure and redress)

ASIC has assisted employees gain access to the Government’s ‘Fair Entitlements Guarantee scheme (Entitlements Scheme) by exercising its wind-up powers and appointing liquidators to 17 abandoned companies in the 12 months to 30 September 2018. Because ASIC appointed the liquidators, employees of these 17 companies can now apply to recover owed unpaid employee entitlements. The 17 abandoned…

Treasury Laws Amendment (2018 Measures No. 5) Bill 2018 progresses – AMIT technical changes; update the list of DGRs and add indigenous language promotion; IP licensing subject to restrictive trade practices law

On 20.9.2018, the Government introduced the Treasury Laws Amendment (2018 Measures No. 5) Bill 2018 in the House of Representatives, where it sat until debated and passed on 17 October 2018 (and it moved to the Senate the next day). It proposes the following amendments: AMIT technical amendments – would amend the TAA, ITAA 1997, ITAA…

Treasury Laws Amendment (Black Economy Taskforce Measures No 2) Bill 2018 – new s26-105 to deny deductions for wages etc if PAYG amounts not withheld; amendments to s396-55 extend reporting obligations to contractor payments in the road freight, IT, security & investigation or surveillance industries

On 20.9.18, the Government introduced the Treasury Laws Amendment (Black Economy Taskforce Measures No 2) Bill 2018 in the House of Representatives and on 17 Oct 2018, it the Lower House and moved (the next day) to the Senate. The Bill proposes: to insert a new s26-105 into the ITAA 1997 that will deny an income tax…

Super fund ‘downsizer’ contributions – industry asks ATO what to do with ‘ineligible’ contributions received since the 1 July 2018 start to this regime

In a recent meeting of the Superannuation Administration Stakeholders Group, the industry representatives requested further advice, from the ATO, on the action required for ‘downsizer’ contributions that are subsequently found to be ineligible contributions. Currently there is a 13 month turnaround period for the ATO to determine whether the contributed amounts are ‘ineligible’, and this delay…

Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018 becomes law accelerating 25% company tax rate by 5 years for ‘base rate entities’ (Sub-$50m turnover & no more than 80% passive income)

The Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018 received Royal Assent on 25.10.2018, as Act 135 of 2018 and becomes law. The Government introduced the Bill into Parliament on 16.10.18 and passed both houses on 18.10.18. It implements the proposal to accelerate the reduction of the tax rate for corporate tax…

Regime to centralise ‘business registers’; starting with ASIC transferring 34 registers to the ABR (ATO); ‘Director Identification Number’ requirement to be created – draft legislation released

On 1 October 2018, Treasury released draft legislation proposing to implement its 2018-19 Federal Budget measures to modernise business registers and introduce Director Identification Numbers (DIN). SUBMISSIONS were due by 26 October 2018 (and are now closed). The legislative package, includes: The draft Commonwealth Registers Bill 2018 (Bill 1) – which establishes a statutory regime by which Commonwealth agencies…

New Regulation giving business names not registered on ASIC’s national register another 5 years to continue being registered on the ABR (and have an ABN)

The A New Tax System (Australian Business Number) Amendment (Display of Trading Names) Regulations 2018 provides a further 5 year extension of the time, from 1 November 2018 to 31 October 2023, that unregistered  trading names, can remain on the on the Australian Business Register (ABR). These are business names that were on the ABR…

Draft legislation to prevent deductions for repayment of principal on ‘concessional loans’ owed by previously exempt State and Territory Bodies on becoming taxable (eg. privatised)

On 12 October 2018, Treasury draft legislation to progress a measure announced in the 2018-19 Budget, that relates to State and Territory tax exempt entities, that become taxable, after 8 May 2018. This is described as an ‘integrity’ measure and is designed to stop such entities getting tax deductions on repayment of pre-privatising concessional loans. The deductions…

Draft Legislation – Assignments of Partnership Interests precluded from getting Div 152 ‘small business CGT relief – only assignments when the assignee becomes a partner will remain eligible

ON Monday 15.10.2018, Treasury released draft legislation to give effect to its 2018-19 Budget measure to remove access to the small business CGT measures for partners that (in the main case) assign part, or all of their interest in the partnership – which was done in the well known Everett [1980] HCA 6 and Galland [1984]…

Draft legislation to disallow certain deductions in relation to vacant land – unless used in carrying on a business or incurred by a company etc (unintended consequences for ‘residential premises?)

On Monday 15.10. 2018, Treasury released draft legislation to give effect to its 2018-19 Federal Budget measure to disallow deductions for expenses associated with holding vacant land, except in specified circumstances. Treasury’s explanation for the measure is [para 1.6 of the Draft EM] is: 1.6 As the land is vacant, there is often limited evidence…