As a result of the release of Reserve Bank data, the benchmark interest rate for the 2012-13 income year, for the purposes of the deemed dividend provisions of Div 7A of the ITAA 1936, can now be calculated to be 7.05% (down from 7.80% for 2011-12). The benchmark interest rate is the same as the…
The Government announced in the 2012-13 Budget that it would make several changes to support the effective operation of the 2011-12 Budget measure providing greater consistency in the application of the scrip-for-scrip roll-over and small business concessions. In particular, the 2012-13 Budget announcement is designed to ensure that the provisions concerning absolutely entitled beneficiaries, security…
The Prime Minister has ruled out abolishing negative gearing. Speaking on the ABC’s Q&A Program on Mon 11.6.2012, she said the Government did not agree with the Henry Tax Review and that abolition of negative gearing “would cause distortions to the property market that we didn’t want to see”. [LTN 111, 12/6]
Greens Deputy Leader Adam Bandt has announced the Greens will move to scrap the State royalty credit contained in the mining tax legislation. Mr Bandt said that the Greiner/Brumby review of the mining royalties had confirmed “the inherently flawed nature of the Government’s royalty deal with the big miners”. If the rebate was retained, it…
The Australian Charities and Not-for-profits Commission (ACNC) on Tue 12.6.2012, released the ACNC Taskforce Implementation Report. The report outlines various key actions that will underline the ACNC’s functions, including: registering entities; developing a reporting framework, which will incorporate a “report-once, use-often charity passport”; and providing guidance and education for charities and the public. Source: ACNC…
The House of Reps Economics Committee will hold a public hearing in Canberra on Monday, 4 June 2012 on the Tax Laws Amendment (2012 Measures No 2) Bill 2012 and 2 closely related Bills, the Pay As You Go Withholding Non-compliance Tax Bill 2012 and the Income Tax (Managed Investment Trust Withholding Tax) Amendment Bill…
The Tax Laws Amendment (2012 Measures No 4) Bill 2012 was introduced in the House of Reps on Thurs 28.6.2012. It contains the following amendments: amends the and the ITAA 1997 to reform the taxation treatment of living-away-from-home (LAFH) allowances and benefits (note the – see below). For example, the amendments would:Fringe Benefits Tax Assessment…
The Legislative Instruments Amendment (Sunsetting Measures) Bill 2012 was passed by the House of Reps on Tue 26.6.2012, without amendment and now moves to the Senate. The Bill seeks to, among other things, repeal spent and redundant instruments and provisions up to 10 years earlier than is provided for under the existing sunsetting regime. [LTN…
The Veterans’ Affairs Legislation Amendment Bill 2012 was introduced in the House of Reps on Wed 27.6.2012. It proposes to amend Veterans’ Affairs and other legislation to, among other things: amend the ITAA 1997 to exempt from income tax, reimbursements made under the Repatriation Pharmaceutical Benefits Scheme and the Military Rehabilitation and Compensation Act Pharmaceutical…
The Tax Laws Amendment (2012 Measures No 2) Bill 2012 and Pay As You Go Withholding Non-compliance Tax Bill 2012 were both passed by the Senate on Wed 27.6.2012 without amendment and effectively await Royal Assent. The Bills will: (i) extend the director penalty regime to, among other things, make directors personally liable for…