Treasury

  • Targeted amendments to Division 7A

The purpose of this paper is to seek stakeholder views on the Government’s proposed implementation of the amendments to Division 7A of the Income Tax Assessment Act 1936.

The amendments draw on recommendations from the Board of Taxation and include:

  • simplified Division 7A loan rules to make it easier for taxpayers to comply;
  • a self-correction mechanism to assist taxpayers to promptly rectify breaches of Division 7A;
  • safe harbour rules for the use of assets to provide certainty and simplify compliance for taxpayers;
  • technical amendments to improve the integrity and operation of Division 7A while providing increased certainty for taxpayers; and
  • clarification that unpaid present entitlements (UPEs) come within the scope of Division 7A.

The outcomes of this consultation process will inform the development of legislation required to implement these measures.

You can submit responses to this consultation up until 21 November 2018.

  • Enhancing the integrity of tax deductions in relation to vacant land

In the 2018-19 Budget, the Government announced that it would improve the integrity of the tax system by denying certain deductions for expenses associated with holding vacant land. This is to address integrity concerns that deductions are being improperly claimed for holding vacant land where the land is not genuinely held for the purpose of earning assessable income.

The Government has released exposure draft legislation and explanatory material for amendments to give effect to this Budget announcement.

From 1 July 2019, the proposed legislation will limit deductions for expenses associated with holding vacant land. The measure does not apply to expenses associated with holding vacant land that is used by the owner or a related entity to carry on a business. For example, the measure will not apply to a business of primary production or to a property developer that is carrying on a business and is holding land for the purpose of that business.

The measure also does not apply to corporate tax entities, managed investment trusts, public unit trusts and unit trusts.

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

Senate Economics Legislation Committee

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

On 18 October 2018, the Senate referred the provisions of the Treasury Laws Amendment (Making Sure Multinationals Pay Their Fair Share of Tax in Australia and Other Measures) Bill 2018 to the Economics Legislation Committee for inquiry and report by 3 December 2018.

You can submit responses to this consultation up until 5 November 2018.

House Standing Committee on Social Policy and Legal Affairs

  • Review of the Social Security Commission Bill 2018

On Wednesday, 19 September 2018 the Selection Committee referred the Social Security Commission Bill 2018 to the Committee for an advisory report.

You can submit responses to this consultation up until 1 March 2019.

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