On Saturday, 14 December 2013, the Assistant Treasurer announced the outcome of consultations over the remainder of the 92 announced but unlegislated tax and superannuation measures.
The Government previously announced that 18 measures would proceed, 3 would be amended and 7 would not go ahead including FBT changes re cars and the cap on self-education expenses. Senator Sinodinos said of the 64 measures that were considered further, 16 will proceed and 48 measures will not proceed.
MEASURES TO PROCEED include:
- CGT treatment of earn-out arrangements.
- CGT – strengthening certain integrity provisions in the scrip for scrip roll-over.
- Income tax treatment of instalment warrants.
- Loss recoupment rules – multiple classes of shares.
- GST reverse charge for going concerns.
- GST and cross-border transactions – “connected with Australia” rules.
- Amendments announced last month to the thin capitalisation and offshore banking units measures.
- Debt/equity tax rules – limiting scope of integrity rule.
- Functional currency rules – extending the range of entities that can use a functional currency.
- TOFA – amendments to tax hedging rules.
MEASURES NOT PROCEEDING include:
- R&D tax incentive – quarterly credits.
- CGT relief for taxpayers affected by natural disasters.
- Bad debts – ensuring consistent treatment in related party financing arrangements (symmetric treatment of bad debts).
- Measure to “better target” not-for-profit tax concessions will not proceed at this stage, but the Government says it will explore simpler alternatives to address the risks to revenue.
- GST: Government response to Board of Taxation report: GST administration – changes in use adjustments; review treatment of vouchers; review multi-party transactions; pre-registration adjustments; adjustments on cessation of registration.
- Superannuation reforms:
- oSMSFs – acquisitions and disposals of certain assets between related parties [done on-market or with valuation]. Would have prescribed rules for the acquisition and disposal of certain assets between SMSFs and related parties.
- oencouraging the take-up of deferred lifetime annuities;
- oimplementation of SuperStream reforms (stronger super reforms – inter-fund consolidation of accounts less than id=”mce_marker”,000);
- oclarifying the operation of certain superannuation trust deed clauses. Would have ensured that trust deed clauses could not be used to prevent excess amounts from being counted as contributions;
- ounlawful payments from regulated superannuation funds – income tax rates amendment. Would have taxed super benefits received illegally at 45% plus Medicare levy.
- Securities lending arrangements tax rules – extending the scope to address insolvency issues.
- International tax – review of the foreign source income anti-tax-deferral (attribution) regimes.
- Taxation exemptions for foreign governments (sovereign immunity).
In addition, the Assistant Treasurer said the Government is developing a legislative measure to protect taxpayers who may have self-assessed on the basis of an announced measure that will no longer proceed.
The Government intends that the bulk of legislation should be passed by the Parliament during 2014.
[LTN 243, 16/12/13]