Weekly Tax Highlights

Highlights to 24 May 2019

ATO Documents

Taxation Determination
TD 2019/8 Income tax: in the definition of 'financial intermediary business' what is meant by 'a business whose income is principally derived from the lending of money'?

Taxation Ruling
TR 2019/2 Income tax: whether penalty interest is deductible

Law Companion Ruling
LCR 2019/1 The business continuity test - carrying on a similar business

Class Ruling
CR 2019/33 Property Exchange Australia Limited - Employee Share Option Plan - Commissioner's discretion to reduce the minimum holding period in relation to options acquired

Product Ruling
PR 2019/2 Income tax: W.A. Blue Gum Project 2019

Taxation Ruling - Withdrawal
TR 93/7W Income tax: whether penalty interest payments are deductible 


Other News


Handsley and FCT [2019] AATA 917
The AAT held that a taxpayer who lived in a number of different countries was still a resident of Australia for tax purposes as he remained domiciled in Australia and had not established a permanent place of abode outside Australia.


Progress of legislation


As at 24.05.19

Bill

Treasury Laws Amendment (Mutual Reforms) Bill 2019

Description

Introduced by the Government into the Senate to reform the mutual sector including amendments to the Corporations Act and related tax amendments.

Status

Received Royal Assent 05.04.19. Act No 37 of 2019.

Bill

Treasury Laws Amendment (Combating Illegal Phoenixing) Bill 2019

Description

Prohibit creditor-defeating dispositions of company property; improve accountability of resigning directors; allow the Commissioner to collect estimates of anticipated GST liabilities; make company directors personally liable for GST; authorise the Commissioner to retain tax refunds.

Status

Lapsed at dissolution 11.04.19

Bill

Treasury Laws Amendment (Increasing the Instant Asset Write-Off for Small Business Entities) Bill 2019

Description  

Increases the threshold below which amounts can be immediately deducted by small businesses and extends the time period during which small business entities can access expanded accelerated depreciation rules.

Status

Received Royal Assent 06.04.19. Act No 51 of 2019.

Bill

Treasury Laws Amendment (Making Sure Foreign Investors Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2019

Description

Implements integrity measures in relation to stapled structures, thin capitalisation, withholding tax exemption for superannuation funds for foreign residents and the sovereign immunity tax exemption. The Bill was amended in relation to premises used primarily for the provision of disability accommodation and student accommodation.

Status

Received Royal Assent 05.04.19. Act No 34 of 2019.

Bill

Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018

Description

Broadens the SGE definition, amends the thin capitalisation asset valuation rules, better targets the R&D Tax Incentive, changes the GST Act in relation to online hotel bookings and removes the luxury car tax for re-imported cars refurbished overseas.

Status

Lapsed at dissolution 11.04.19

Bill

Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018

Description

Increased penalties and a one off amnesty for employers not meeting their superannuation obligations.

Status

Lapsed at dissolution 11.04.19

Bill

Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 2) Bill 2018

Description

Implements new rules for foreign residents owning Australian housing, technical amendments to streamline the foreign investment framework and introduces tax incentives to boost investment in affordable housing.

Status

Lapsed at dissolution 11.04.19

Bill

Treasury Laws Amendment (2018 Measures No. 2) Bill 2018

Description

Establishes the foundation for the Government's new Fintech framework. Makes a number of technical amendments to the Early Stage Venture Capital Limited Partnership, Venture Capital Limited Partnership and Tax Incentives for Early Stage Investor regimes.

Status

Lapsed at dissolution 11.04.19

Bill

Medicare Levy Amendment (National Disability Insurance Scheme Funding) Bill 2017

Description

Fund the NDIS by amending the Medicare Levy Act 1986 to increase the Medicare levy rate from 2 to 2.5% of taxable income for the 2019-20 income year and later income years. Given the Government’s announcement that the increase to the Medicare Levy will be scrapped, this Bill may not proceed

Status

Lapsed at dissolution 11.04.19

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package.

Status

Lapsed at dissolution 11.04.19

 

 

 

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