The Tax Laws Amendment (2012 Measures No 6) Bill 2012 was introduced in the House of Reps Thur 29.11.2012. It contains the following amendments:
- : amends Sch 2 of the to extend the interim streaming rules for managed investment trusts until the commencement of the new tax system for managed investment trusts. DATE OF EFFECT: Royal Assent. These amendments will apply in relation to the 2012-13 and 2013-14 income years;MITsTax Laws Amendment (2011 Measures No 5) Act 2011
- medical expenses rebate slimmed and means tested: amends the ITAA 1936 to apply an income test to the rebate for medical expenses from 1 July 2012. For taxpayers with adjusted taxable income above the Medicare Levy Surcharge thresholds ($84,000 for singles or $168,000 for couples or families in 2012-13), the threshold above which they may claim the net medical expenses tax offset will increase to $5,000 and the rate of reimbursement will be reduced to 10%. The claim threshold will be indexed annually to the CPI. DATE OF EFFECT: 1 July 2012;
- limited recourse debts in substance: amends Div 243 of the ITAA 1997 (the limited recourse debt provisions) to clarify that the definition of “limited recourse debt” includes arrangements where, in substance or effect, the debtor is not fully at risk in relation to the debt. DATE OF EFFECT: apply in relation to debt arrangements terminated at or after 7.30 pm, AEST in the ACT, on 8 May 2012;
- FBT concession ends for in-house benefits taken under salary sacrifice: amends the Fringe Benefits Assessment Act 1986 to remove the concessional fringe benefits tax treatment for in-house fringe benefits accessed by way of salary packaging arrangements. DATE OF EFFECT: changes will generally apply to benefits provided on or after 22 October 2012;
- native title benefits: amends the ITAA 1997 and ITAA 1936 to make it clear that native title benefits are not subject to income tax (including CGT). DATE OF EFFECT: The amendments commence on the day the Bill receives Royal Assent. The amendments will apply in relation to income years starting on or after 1 July 2008, and, in relation to CGT, to events happening on or after 1 July 2008;
- exploration expenditure: amends the ITAA 1997 to extend the immediate deductibility of exploration expenditure provided to mining and petroleum explorers to geothermal energy explorers. Geothermal energy explorers will be entitled to equivalent treatment for their exploration or prospecting expenditure incurred on or after 1 July 2012 as that afforded to mining and petroleum explorers. This includes an immediate tax deduction for the cost of depreciating assets first used for exploration or prospecting on or after 1 July 2012, provided certain criteria are met. DATE OF EFFECT: Broadly, the changes will be effective from 1 July 2012;
- DGRs: amends ITAA 1997 to update the list of deductible gift recipients (DGRs) by adding 2 entities as DGRs and extending the listing of another 3 entities. DATE OF EFFECT: various;
- makes miscellaneous amendments to the taxation laws and regulations as part of the Government’s commitment to uphold the integrity of the taxation system eg amendments to ensure that the promoter penalty provisions in the tax laws are effective against conduct that takes place outside Australia. DATE OF EFFECT: various.
[LTN 232, 29/11]
Bill referred to House of Reps Committee
The Tax Laws Amendment (2012 Measures No 6) Bill 2012 has been referred to the House of Reps Standing Committee on Economics for report.
[LTN 233, 30/11]