Category Archives: Tax Articles

Inquiry into the External Scrutiny of the Australian Taxation Office – a submission of the Inspector-General to the House of Representatives Standing Committee on Tax and Revenue (copy attached)

A submission of the Inspector-General to the House of Representatives Standing Committee on Tax and Revenue inquiring into the External Scrutiny of the Australian Taxation Office (copy attached) EXECUTIVE SUMMARY The IGT welcomes the opportunity to make submission to the House of Representatives Standing Committee on Tax and Revenue (the Committee) to assist in its Inquiry…

Forestry & Agricultural MIS – Senate Economics Committee’s report after the collapse of Timbercorp, Great Southern and others – 24 recommendations including tax issues

On 11 March 2016, the Senate Economics References Committee finally released its report into the structure and development of forestry (or agribusiness) managed investment schemes (MIS). It was originally due for release by 27 October 2014. The Preamble the Committee notes: “In 2009, two of Australia’s largest agribusiness managed investment schemes (MIS) failed—Timbercorp and Great Southern. In quick succession, a…

GST – Bill to tax digital imports (e.g. ‘Netflix’) and cross-border changes – Senate Committee’s report

report The Senate – Economics Legislation Committee – Report on Tax and Superannuation Laws Amendment (2016 Measures No. 1) Bill 2016 [Provisions]  Introduction and background to the bill  Referral and conduct of the inquiry  1.1 On 25 February 2016, the Senate referred the provisions of the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Bill 2016…

Legislating the objective of ‘superannuation’ – Treasury Discussion paper

Objective of Superannuation – Treasury Discussion Paper 9 March 2016   Notes to participants The principles outlined in this paper have not received Government approval and are obviously not yet law. As a consequence, this paper is merely a guide as to how the principles might operate.   Contents Objective of Superannuation. 1 Purpose. 1…

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…

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…

OECD report supports Australian Government action on multinational tax avoidance

The OECD final BEPS Report and Action Plan is back in the headlines and it is worth recounting what the Treasurer said about them at the time (on 6 October 2015). _____________________ The overnight release of the OECD’s Final Report on the Base Erosion and Profit Shifting (BEPS) Action Plan shows that Australia is firmly…

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…

Tax incentive for ‘early stage investors’ – 20% non-refundable off-set up to $200,000pa & CGT exemption after 3 year then uplift after 10 years

Treasury put up, on its website, the following explanation of the tax incentive for ‘early stage investors’ announced in the Innovation Statement on 7 December 2015. Tax incentive for ‘early stage investors’ – what is it? The Government has announced that it will introduce a tax incentive for startup investors which will provide concessional tax…

Summary of cross-border transaction GST changes in Tax and Superannuation Laws Amendment (2016 Measures No 1) Bill 2016 (as introduced)

The Tax and Superannuation Laws Amendment (2016 Measures No 1) Bill 2016 was introduced into Parliament on 10 February 2016 to give effect (amongst other things) to the previously announced measure that reduces the GST duties of non-residents and gives ‘Australian-based business recipients’ more responsibility under the ‘reverse charge’ provisions in Div 84 (Schedule 2).  These changes will…