Category Archives: Tax Month – June 2018

LCR 2018/4 – purchasers’ obligation to pay GST amounts on taxable supplies of certain ‘new’ residential premises and potential residential land – including ‘clarification’ of wrongly withheld refunds

On 27 June 2018, the ATO issued Law Companion Ruling LCR 2018/4 on the recently enacted measure requiring purchasers of newly constructed residential premises (or new subdivisions) to remit GST directly to the ATO as part of the transaction (finalising LCR 2018/D1). For a fuller discussion about the operation of these provisions, and the draft…

Non-core Procurement Hubs – draft ‘Second Schedule’ to PCG 2017/1 – transfer pricing ‘green zone’ 25% markup or 100% attribution

On 27 June 2018, the ATO released a draft updated version of Practical Compliance Guideline PCG 2017/1, its guidance on transfer pricing issues related to centralised operating hubs (PCG 2017/1DC). PCG 2017/1 contains a hub risk assessment framework and one schedule covering offshore marketing hub arrangements. When PCG 2017/1 was first issued, the ATO indicated…

Super protection Bill – ‘exit fee’ prohibition; sub$6k small accounts: 3% fee cap, ‘opt-in’ insurance (under 25’s & ‘inactive’), transfer ‘inactive’ accounts to Commissioner; transfer ‘inactive’ to ‘active’ accounts

On 21 June 2018, the Minister for Revenue and Financial Services, Kelly O’Dwyer, introduced the Treasury Laws Amendment (Protecting Your Superannuation Package) Bill 2018 into the House of Representatives, which it passed on 28 June 2018. Also, on 21 June 2018, the Senate referred the provisions of this Bill to its Economics Legislation Committee for inquiry and…

Stapled Structures – Integrity Measures Proposal Paper – extend existing MIT ‘arm’s length rent rule’ and introduce ‘statutory caps’ on cross-staple rent etc.

On 28 June 2018, the Treasury released a proposal paper, Stapled Structures – Integrity conditions for transitional rules and infrastructure concession. The paper outlines the proposed conditions stapled entities must comply with to access the infrastructure concession and/or transitional arrangements. The conditions include: the extension of existing integrity rules, that apply to Managed Investment Trusts…

ATO Reportable Tax Position Schedule – ATO updates its website to encourage a wide interpretation of RTP questions

On 26 June 2018, the Australian Taxation Office (ATO) released an update on the Reportable Tax Position (RTP) Schedule clarifying how the information is used. The system applies to companies and is done through the Commissioner’s power to set out the information he wants in taxpayers’ annual tax returns. The ATO advised that the RTP…

Taxing digital business in Australia – Treasury discussion paper to be issued

In the 8 May 2018 Budget, the Treasurer, foreshadowed action on the digital economy. He said that “we need to do more” – referring to the Government’s crackdowns on multinationals (including the MAAL), which have prompted Multi-nationals to book and additional $7 billion a year in sales in Australia (but have resulted in way less…

Reduction of ‘private companies’ total income threshold, for public reporting of high level tax data – Private Senator’s Bill passes Senate and moves to Lower House

The Private Senator’s Taxation Administration Amendment (Corporate Tax Entity Information) Bill 2017, which was introduced in the Senate on 14 August 2017 by the former ALP Senator Katy Gallagher, was passed on Monday 25.6.2018, by the Senate with amendments from the Greens. This Bill would amend law, that requires the Commissioner to publicly disclose certain high level…

Treasury Laws Amendment (2018 Measures No. 4) Bill 2018 – strengthen SG Super contribution compliance, MySuper Core Provisions, Common Reporting Standard, off-shore information notices, disclose SCT information, update DGRs

Treasury Laws Amendment (2018 Measures No. 4) Bill 2018 was introduced into Parliament on 28 March 2018, was passed by the Lower House on 25 June 2018 and moved to the Senate on the same day. The Bill would amend: taxation legislation to: enable the Commissioner of Taxation to issue directions to employers to: pay…

Treasury Laws Amendment (Tax Integrity and Other Measures No 2) Bill 2018 – Hybrid Mismatch Rules; Film Producer Offset; Tax Exemption for World Twenty20 Cricket; Korean War Memorial DGR – passed Lower House

The Treasury Laws Amendment (Tax Integrity and Other Measures No 2) Bill 2018 was introduced in the House of Reps on Thursday, 24.5.2018 and was passed in that House on 25.6.2018. It proposes to introduce the following. HYBRID MISMATCH RULES: amend the ITAA 1997 and ITAA 1936 to implement OECD BEPS hybrid mismatch rules as…

Superannuation Integrity Measures Bill – SG Amnesty, SG Opt-out for certain high earning employees, NALI extended to non-arm’s length expenses, LRBA changes – passes Lower House 21 June 2018

On Thursday, 21 June 2018, the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018 passed the Lower House and moved to the Senate. Prior to that, on Monday, 18 June 2018, the Senate Economics Legislation Committee has released its report and recommended the Bill be passed. The Labor Senators on the Committee, however, opposed…