The Tax and Superannuation Laws Amendment (2013 Measures No 1) Bill 2013 was introduced in the House of Reps on Wed 13.2.2013. It contains the following amendments:

  • : the Bill proposes to amend the income tax law to allow corporate tax entities that have paid tax in the past, but are now in a tax loss position, to carry their loss back to those past years to obtain a refund of some of the tax they previously paid. This will be done through the mechanism of a Company loss carry-backrefundable tax offset. The tax offset the entity will be able to get will be the lowest of: (i) the tax value of the amount of the loss the entity chooses to carry back; (ii) the tax payable on id=”mce_marker”m taxable income ($300,000 at the current corporate tax rate); (iii) the entity’s franking account balance at the end of the current year; and (iv) the tax liability for the year(s) the entity carries the loss back to. The operative rules for the loss carry-back regime would primarily be contained in proposed new Div 160 of the ITAA 1997. DATE OF EFFECT: These amendments would apply to assessments for the 2012-13 income year and later income years.
  • SMSFs – acquisitions and disposals of certain assets between related parties: the Bill proposes to amend the Superannuation Industry (Supervision) Act 1993 to prescribe requirements for acquisitions and disposals of certain assets between self-managed super funds (SMSFs) and related parties. These requirements ensure that these transactions are conducted with transparency and are not used to circumvent the requirements of the superannuation law [viz: through a market where there is one, and with a valuation where there is not]. DATE OF EFFECT: The changes would apply to transactions occurring on or after 1 July 2013.
  • FBT and airline transport fringe benefits: amends the Fringe Benefits Tax Assessment Act 1986 to align the special rules for calculating airline transport fringe benefits with the general provisions dealing with in-house property fringe benefits and in-house residual fringe benefits and will be calculated as 75% of the stand-by airline travel value of the benefit, less the employee contribution. The method for determining the taxable value of airline transport fringe benefits would also be updated to simplify the practical operation of the law and to better reflect the economic value of the benefit. DATE OF EFFECT: Will apply to benefits provided after 7:30 pm by legal time in the Australian Capital Territory on 8 May 2012.
  • Interest on unclaimed money: amends the income tax and superannuation law to ensure that income tax is generally not payable on the interest paid by the Commonwealth on unclaimed money from 1 July 2013. DATE OF EFFECT: 1 July 2013.
  • Sustainable Rural Water Use and Infrastructure Program: The Bill proposes to amend the ITAA 1997 to allow participants in the Sustainable Rural Water Use and Infrastructure Program (SRWUIP) to choose to make payments they derive under the program free of income tax (including CGT), with expenditure relating to the infrastructure improvements required under the program then being non-deductible. DATE OF EFFECT: Will apply to payments made by the Commonwealth under a SRWUIP program on or after 1 April 2010.
  • Miscellaneous amendments: include for example: amendments relating to resource rent taxation (including correcting minor technical errors in the mining tax and the PRRT); amending the definition of “tax preferred end user” in the ITAA 1997; simplifying the process for future changes to the phase-out thresholds in the Income Tax Rates Act 1986; correcting typographical errors; updating references.

[LTN 29, 13/2/13]

Bill referred to Joint Corporations Committee

The Tax and Superannuation Laws Amendment (2013 Measures No 1) Bill 2013 has been referred to the Parliamentary Joint Committee on Corporations and Financial Services for report.

[LTN 32, 18/2/13]