The Minister for Revenue and Financial Services, the Hon Kelly O’Dwyer MP, has released two draft legislations related to taxation for public consultation.

The first draft legislation and its consultation paper is entitled ‘Superannuation Taxation Integrity Measures’.

This consultation paper covers two superannuation taxation measures that were announced in the 2017-18 Budget and support the integrity of the Government’s comprehensive suite of superannuation taxation reforms.

The first measure includes a member’s share of the outstanding balance of a Limited Recourse Borrowing Arrangement (LRBA) in their total superannuation balance (TSB). The second measure ensures that non-arm’s length expenditure is taken into account when determining whether the non-arm’s length income (NALI) taxation rules apply to a transaction.

These measures are intended to ensure that LRBAs or related party transactions cannot be used to circumvent contribution caps. They are not intended to prevent the use of LRBAs.

The consultation paper explains how the measures are intended to operate and seeks feedback on whether they meet their policy objectives; whether their objectives could be achieved in some other way; and what may be the unintended consequences of the measures.

The second draft legislation is on transparency of business tax debts and, if passed in Parliament, it will authorise the Australian Taxation Office (ATO) to disclose business tax debts to credit reporting bureaus where the businesses have not effectively engaged with the ATO to manage their debt.

The ATO will be required to consult with the Inspector General of Taxation before tax debt amounts are reported to credit reporting bureaus.

Stakeholders are invited to comment on the draft legislations by Friday 9 February 2018. The materials are available on the Treasury website:

Superannuation Taxation Integrity Measures

Transparency of Business Tax Debts

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