Category Archives: Tax Month – June 2012

*Grattan Institute recommends widening GST net, cutting income taxes, replacing transaction taxes with property taxes and increasing age for super [114]

The Grattan Institute’s new report, Game-changers: Economic reform priorities for Australia, says if Australian governments “are serious about raising rates of economic growth, they must reform the tax mix and increase the workforce participation rates of women and older people”. This could contribute over $70bn per year to economic growth in the next decade, Grattan…

*Official interest rates cut to 3.50% [113]

At its meeting on Tue 5.6.2012, the Reserve Bank Board decided to cut official interest rates by 25 basis points to 3.50%, effective 6 June 2012. The Board said that “with modest domestic growth and a weaker and more uncertain international environment, the outlook for inflation afforded scope for a more accommodative stance of monetary…

FoFA – Government may shift policy on replacement to accountants’ exemption: ICAA [112]

The Institute of Chartered Accountants (the Institute) says that while discussions on a replacement for the accountants’ exemption have been underway for well over 2 years, it seems the Government may be getting closer to delivering a policy change which falls into line with the Institute’s long-held views. The Institute says that, on the back…

FoFA: ban on conflicted remuneration – draft regs released [111]

The Government has released its first package of FoFA exposure draft regulations to set out details in relation to the ban on conflicted remuneration proposed by the FoFA Bills. The draft regulations propose to amend the Corporations Regulation 2001 to: exclude “product fees” from the proposed definition of an “ongoing fee arrangement”; introduce a delayed…

Vic stamp duty: SRO forms under review [110]

The Victorian State Revenue Office (SRO) is conducting a review of various duties forms and is seeking comments to improve the following forms: Duties Form 1 (Goods statement for residential land); Duties Form 2 (Goods statutory declaration); Duties Form 3 (Real property value statutory declaration); Duties Form 4A (Off the plan sales statutory declaration); Duties…

Qld duty on transfer of prospecting and exploration permits and authorities [109]

The OSR has also advised that the Qld Government has confirmed the announcement made in the 2011-12 Mid-Year Fiscal and Economic Review, released on 13 January 2012, that duty will apply to the transfer of a prospecting permit, exploration permit or authority to prospect issued under resources legislation. Landholder duty may also apply. The OSR…

*NSW: interest penalties – rate decrease from 4.37% to 3.66% [108]

The NSW Office of State Revenue (OSR) has advised that the market rate of interest imposed on any tax default committed under various taxation and revenue laws administered by the OSR will change from 4.37% to 3.66%, with effect from 1 July 2012. [LTN 123, 28/6] [LTN 124, 29/6]

*NSW Budget 2012-13: deferred abolition of duties; home buyer concessions [107]

The 2012-13 NSW Budget was handed down on Tue 12.6.2012. Revenue measures announced include: – The proposed abolition of the following taxes has been deferred for 1 year Deferred abolition of various taxesto 1 July 2013: mortgage duty on business transactions, unquoted marketable securities duty, and duty on transfers of non-land business assets such as…

*ACT Budget 2012-13: long-term plan for tax reform – replace most Territory taxes with increased rates [106]

The 2012-13 ACT Budget was handed down on Tue 5.6.2012. The ACT Treasurer Andrew Barr revealed a 20-year plan to reform the Territory’s taxation system. The Budget contains the plan for the first 5 years. Mr Barr said many taxes will be reduced, some will rise, and several will be abolished. Tax measures announced included:…

WA stamp duty: valuations used by Commissioner [105]

The WA Office of State Revenue (OSR) has revised Commissioner’s Practice TAA 8.7 (Valuation of land for duties and stamp duty purposes). The OSR says the Commissioner’s Practice has been amended to increase the value cap from $400,000 to $2m for valuations that may be relied on in the assessment of a transaction between related…