The Tax and Superannuation Laws Amendment (2014 Measures No 7) Bill 2014 was introduced in the House of Reps on Thur 4.12.2014. It makes the following amendments:
- Super excess non-concessional contributions – option to withdraw – amends the ITAA 1997 and the TAA to allow individuals the option of withdrawing excess superannuation non-concessional contributions (plus 85% of associated earnings), with the full amount of the associated earnings to be taxed at the individual’s marginal tax rate (subject to a 15% tax offset). DATE OF EFFECT: 1 July 2013.
- Inspector-General of Taxation to hear tax complaints – amends the Inspector-General of Taxation Act 2003 by transferring the tax investigative and complaint handling function of the Commonwealth Ombudsman to the Inspector-General of Taxation and merging that function with the Inspector-General’s existing function of conducting systemic reviews. This provides taxpayers with a specialised complaint handling process for taxation matters and aligns the systemic review role of the Inspector-General with the correlative powers and functions of the Ombudsman. DATE OF EFFECT: commences the later of the 14th day after this Bill receives Royal Assent or 1 May 2015.
- CGT exemption for compensation and insurance – amends the ITAA 1997 to ensure that: (i) a CGT exemption is available to certain trustees and beneficiaries who receive compensation or damages; (ii) a CGT exemption is available to trustees of complying superannuation entities for insurance policies relating to illness or injury; and (iii) the CGT primary code rule applies to capital gains and capital losses that are disregarded by complying superannuation entities arising from injury and illness insurance policies, life insurance policies and annuity instruments. DATE OF EFFECT: apply to the 2005-06 income year and later income years.
- Super fund mergers – amends the ITAA 1997 and the Income Tax (Transitional Provisions) Act 1997 to ensure that individuals whose superannuation benefits are involuntarily transferred from one superannuation plan to another plan without their request or consent are not disadvantaged through the transfer. The Bill will also amend the TAA to remove the need for a roll-over benefit statement to be provided to an individual whose superannuation benefits are involuntarily transferred. DATE OF EFFECT: 1 July 2015.
- Proceeds of crime order – tax info disclosure – amends the TAA to allow ATO officers to record or disclose protected information to support or enforce a proceeds of crime order. It also clarifies that all orders relating to unexplained wealth made under a state or territory law are included in the definition of “proceeds of crime order”. DATE OF EFFECT: applies to disclosures made on or after the date of Royal Assent.
- Exploration development incentive – the amendments in the Bill, together with the Excess Exploration Credit Tax Bill 2014 (also introduced in the House of Reps on Thur 4.12.2014), introduce an exploration development incentive by amending the ITAA 1997 and other tax legislation to provide a tax incentive to encourage investment in small mineral exploration companies undertaking greenfields mineral exploration in Australia. Australian resident investors of these companies will receive a tax incentive where the companies choose to give up a portion of their losses relating to their exploration expenditure in an income year. The total value of the tax incentives available to taxpayers in respect of expenditure in an income year is restricted to $25m for greenfields minerals expenditure incurred by eligible companies in 2014-15, $35m for greenfields minerals expenditure incurred in 2015-16 and $40m for greenfields minerals expenditure incurred in 2016-17. DATE OF EFFECT: applies to expenditure in the 2014-15, 2015-16 and 2016-17 income years, allowing the distribution of exploration credits in the 2015-16, 2016-17 and 2017-18 income years.
- Miscellaneous amendments – makes a number of miscellaneous amendments to the taxation and superannuation laws. The amendments include style changes, the repeal of redundant provisions, the correction of anomalous outcomes and corrections to previous amending Acts. DATE OF EFFECT: varies depending on the amendment.
[LTN 235, 4/12/14]