Treasury Consultations

The Government released draft legislation and accompanying explanatory material for public consultation on the following measures:

  • Enhancing the integrity of concessions in relation to partnerships

In the 2018-19 Budget as part of its tax integrity package, the Government announced that, from 7:30PM (AEST) on 8 May 2018, the tax law would be amended so that partners that alienate their income by creating, assigning or otherwise dealing in rights to the future income of a partnership will no longer be able to access the small business capital gains tax (CGT) concessions in relation to these rights.

You can submit responses to this consultation up until 31 October 2018.

  • Extending anti-avoidance rules for circular trust distributions

In the 2018-19 Budget, the Government announced that it will extend a specific anti-avoidance rule for closely held trusts engaging in circular trust distributions to family trusts.

Currently, where family trusts act as beneficiaries of each other in a ’round robin’ arrangement, a distribution can be ultimately returned to the original trustee in a way that avoids any tax being paid on that amount. The Government has prepared draft legislation giving effect to the Budget announcement, which will better enable the ATO to pursue taxpayers entering into these arrangements and impose tax on such distributions at a rate equal to the top personal tax rate plus Medicare Levy.

This change will apply from 1 July 2019.

You can submit responses to this consultation up until 31 October 2018.

  • Improving the integrity of the tax treatment of concessional loans between tax exempt entities

The Government announced in the 2018-19 Budget that it will improve the integrity of the tax treatment of concessional loans between tax exempt entities that are privatised.

Other associated integrity issues are also addressed, such as the tax treatment on disposal prior to maturity of an asset or liability by the privatised entity.

You can submit responses to this consultation up until 2 November 2018.

  • Extending Support for Craft Brewers and Distillers

The draft legislation will extend the concessional draught beer excise rates to 8 litre or greater individual containers, from 1 July 2019. Currently, draught beer sold in individual containers exceeding 48 litres is taxed at lower rates compared with beer sold in individual containers up to and including 48 litres. However, the lower rates mainly benefit large breweries. Extending the concessional draught beer excise rates to 8 litre or greater individual containers will allow craft brewers, which typically use smaller sized kegs, to also benefit from the lower excise rates.

You can submit responses to this consultation up until 31 October 2018.

 

Board of Taxation survey

The Board of Taxation has opened a Fringe Benefits Tax (FBT) Survey for Employers and Tax Agents.

The survey results will help determine what recommendations will most effectively reduce the time and money employers incur to comply with obligations imposed by FBT laws (compliance costs).

 

(Source: Treasury | Board of Taxation)

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