Tax in Progress
| Proposed amendment | Refer to | Proposed application date | Announcement | Consultation | Before Parliament | Waiting Royal Assent |
|---|---|---|---|---|---|---|
| Individuals with income greater than $300,000 will have the contributions tax concession reduced from 30% to 15% | Tax and Superannuation Laws Amendment (Increased Concessional Contributions Cap and Other Measures) Bill 2013 | 1 July 2012 | 1 | |||
| New requirements relating to the acquisition and disposal of certain assets to related parties | Tax and Superannuation Laws Amendment (2013 Measures No. 1) Bill 2013 | 1 July 2013 | 1 | |||
| Penalties for promoters of illegal early release schemes and taxing benefits released at 45% | Unlawful payments from regulated superannuation funds - ED | Penalties – Royal Assent Taxing benefits – 2013-14 year and later years | 1 | |||
| Provide the Commissioner with additional tools and more flexibility to deal will SMSF non-compliance | Stronger Super self-managed superannuation funds - administrative penalties - ED | Contraventions - 1 July 2013 | 1 | |||
| Greater certainty in relation to fund mergers – ensure that the proportioning rule does not apply to transactions that are beyond the control of the individual members | MYEFO 2012-13 | 1 July 2013 | 1 | |||
| Allow the tax exemption for earnings on assets supporting superannuation pensions to continue following the death of a fund member in the pension phase until the deceased member’s benefits have been paid out of the fund | Income Tax Assessment Amendment Regulation 2013 - Draft Regulation | 1 July 2012 | 1 | |||
| Increase concessional contributions cap to $50,000 for individuals ages 50 and over with total super balances below $500,000 | Concessional superannuation contributions cap for individuals ages 50 years and over | 1 July 2014 | 1 | |||
| Bring forward the SMSF levy such that it is levied and collected in the same income year and increase the SMSF levy | Superannuation Legislation Amendment (Reform of Self Managed Superannuation Funds Supervisory Levy Arrangements) Bill 2013 | Increase levy – 2013-14 Other – phase in over 2013-14 and 2014-15 | 1 | |||
| Continue to freeze indexation applied to income threshold above which maximum super co-contribution begins to phase down | 2011-12 Budget Paper No. 2 | Frozen until 2012-13 | 1 | |||
| Phase out of pension drawdown relief provided over the last 3 years to be delayed until 1 July 2013 | 2011-12 Budget Paper No. 2 Assistant Treasurer's Media Release No. 162 2011 | Reduced from 2011-12 and 2012-13 Return to normal in 2013-14 | 1 | |||
| Super co-contribution - Reduce matching rate to 50%, reduce maximum payment to $500, reduce higher income threshold to $46,920 | Tax and Superannuation Laws Amendment (2013 Measures No. 2) Bill 2013 | 1 July 2012 | 1 | |||
| Remove the member protection standards which protect members with balances of less than $1,000 having balance reduced by fees | Superannuation Industry (Supervision) Amendment Regulation 2012 (No.) 1 - Draft Regulations | 1 July 2013 | 1 | |||
| Ensure that certain trust deed clauses cannot be used to avoid excess contributions from being counted against superannuation contribution caps | 2011-12 Mid Year Economic and Fiscal Outcome | Not known | 1 | |||
| Concessional contributions cap increased to $35,000 | Tax and Superannuation Laws Amendment (Increased Concessional Contributions Cap and Other Measures) Bill 2013 | 1 July 2013 for people 60 and over, 1 July 2014 for people 50 and over | 1 | |||
| Allow individuals to withdraw excess concessional contributions from the superannuation fund and tax excess concessional contributions at the marginal tax rate, plus an interest charge | Treasurer's Media Release No 39, 5 April 2013 | Excess concessional contributions made from 1 July 2013 | 1 | |||
| Standard pension deeming arrangement to apply to new superannuation account-based income streams assessed under the pension income test rules | Treasurer's Media Release No 39, 5 April 2013 | 1 January 2015 | 1 | |||
| Deferred lifetime annuities to receive same concessional tax treatment as superannuation assets supporting income streams | Treasurer's Media Release No 39, 5 April 2013 | 1 July 2014 | 1 | |||
| Tax exemption for earnings on super assets supporting income streams to be capped to the first $100,000 of future earnings, anything above that taxed at 15% | Treasurer's Media Release No 40, 5 April 2013 | 1 July 2014 | 1 |
| Proposed amendment | Refer to | Proposed application date | Announcement | Consultation | Before Parliament | Waiting Royal Assent |
|---|---|---|---|---|---|---|
| Qualifying water infrastructure improvement payments will be exempt from capital gains tax | Tax and Superannuation Laws Amendment (2013 Measures No. 1) Bill 2013 | Payments made on or after 1 April 2010 | 1 | |||
| Remove CGT discount for non-residents on taxable Australian property | Removing Capital Gains Tax Discount for Foreign Individuals - ED | 7.30pm (AEST) on 8 May 2012 | 1 | |||
| Ensure that absolutely entitled beneficiaries, bankrupt individuals, companies in liquidation and security providers are treated as the owners of an asset for the purpose of the CGT provisions and the connected entity test | Strengthening scrip for scrip roll over, small business and other concessions - Exposure Draft | Royal Assent | 1 | |||
| Small business CGT concessions - Ensure that the connected entity and stakeholder tests apply having regard only to the ownership of relevant interests, rather than to who benefits from the ownership | Strengthening scrip for scrip roll over, small business and other concessions – Exposure Draft | 7:30pm (AEST) on 10 May 2011 | 1 | |||
| Provide CGT exemption for taxpayers that obtain right to financial incentive (from Gov.) for assets with environmental benefits | Minor Amendments to the Capital Gains Tax Law | Assessments - 2007-08 year and later years | 1 | |||
| Ensure CGT rollovers operate as intended-exchange of shares, disposal of assets trust to company, transfer assets between trusts | Tax Laws Amendment (2012 Miscellaneous Measures No. 1) Bill 2012: Removing tax impediments to certain business restructures - ED | Subdiv 124-N - 7:30pm (AEST) 10 May 2011 Subdiv 124-G - 1 November 2008 | 1 | |||
| Provide a CGT exemption for certain compensation, damages on insurance policies | Minor Amendments to the Capital Gains Tax Law | Generally - 2005-06 year and later years | 1 | |||
| Rewrite the CGT provisions relating to deceased estates (Div 128) | Minor Amendments to the Capital Gains Tax Law | Royal Assent | 1 | |||
| Improve the treatment of off-market share buybacks | Tax Laws Amendment (2011 Measures No. 9) Bill 2011: Buy-backs - ED | Royal Assent | 1 | |||
| Improve the CGT treatment of earnout agreements | Capital Gains Tax Treatment of Earnout Arrangements | Royal Assent | 1 | |||
| Alleviate tax consequences that arise when a consolidated group or MEC group restructures by undertaking a demerger | Consolidated groups that undertake demergers | 9 November 2010 | 1 | |||
| Broaden the CGT relief for taxpayers affected by natural disasters | Minor Amendments to the Capital Gains Tax Law | 1 July 2011 | 1 | |||
| Relief where reforms streamline governance arrangements applying to private water supply and drainage systems – CGT rollover | Income Tax Relief for Improvements to the Governance and Efficiency of Water Supply Entities | Assessments for the 2009-10 year and later years | 1 | |||
| Amendments to the revenue asset and trading stock roll-overs for interposing a company | Removing income tax impediments for business restructures - ED | Subdiv 124-H – 7.30pm (AEST) on 10 May 2011 Subdiv 124-G - 7.30pm (AEST) on 8 May 2012 | 1 | |||
| Amend the principal asset asset to ensure that indirect Australian real property interests are taxable if disposed by foreign resident | Commonwealth Budget 2013-14 | 7.30pm (AEST) on 14 May 2013 | 1 | |||
| Introduce a 10% non-final withholding tax to the disposal by foreign residents of certain taxable Australian property | Commonwealth Budget 2013-14 | 1 July 2016 | 1 |
| Proposed amendment | Refer to | Proposed application date | Announcement | Consultation | Before Parliament | Waiting Royal Assent |
|---|---|---|---|---|---|---|
| Restatement of the 'in Australia' special conditions for tax concession entities and standardises other special conditions | Tax Laws Amendment (Special Conditions for Not-for-profit Concessions) Bill 2012 | New arrangements - 1 July 2014 | 1 | |||
| Extend look-through treatment to instalment warrants and receipts over direct and indirect interests in listed securities | Assistant Treasurer’s Media Release No.08 of 2011 | 1 July 2007 | 1 | |||
| Introduce a statutory definition of ‘charity’ | Charities (Consequential Amendments and Transitional Provisions) Bill 2013 - ED | 1 January 2014 | 1 | |||
| Rules to better target not-for-profit tax concessions for unrelated commercial entities | Tax Laws Amendment (Special Conditions for Not-for-profit Concessions) 2012 | New arrangements - 1 July 2014 | 1 | |||
| Relief where reforms streamline governance arrangements applying to private water supply and drainage systems -capital allowance | Income tax relief for Improvements to the Governance and Efficiency of Water Supply Entities | Assessments for the 2009-10 year and later years | 1 | |||
| Qualifying water infrastructure improvement payments will be free from income tax | Tax and Superannuation Laws Amendment (2013 Measures No. 1) Bill 2013 | Payments made on or after 1 April 2010 | 1 | |||
| Simplifying the continuity of ownership test in certain circumstances and removing minor technical defects | Losses that a company seeks to deduct or apply in the 2011‐12 year or later years | 1 | ||||
| Technical amendments to the uniform capital allowances regime | Assistant Treasurer’s Media Release No.048 of 2011 | 1 July 2001 or 1 July 2009 | 1 | |||
| Reforms to the Corporations Act in relation to the test for the payment of dividends | Proposed amendments to the Corporations Act | Not known | 1 | |||
| Deny a tax deduction and corresponding gain for bad debts written off with related parties | Bad debts – ensuring consistent treatment in related party financing arrangements | 7.30pm (AEST) on 8 May 2012 | 1 | |||
| Availability of carry-back tax losses for companies of up to $1 million losses each year | Tax and Superannuation Laws Amendment (2013 Measures No. 1) Bill 2013 | Tax losses incurred in the 2012-13 year | 1 | |||
| Insert further components of the simplified imputation system in the ITAA 1997 and make minor amendments | Treasurer and Assistant Treasurers’ Joint Media Release No.053 of 2011 | 1 July 2002 | 1 | |||
| Replace baby bonus and increase FTB Part A payment by $2,000 (or $1,000 for second or subsequent children) | Commonwealth Budget 2013-14 | 1 March 2014 | 1 | |||
| Maintain higher income threshold for family payments and supplement payments at their current levels | Commonwealth Budget 2013-14 | Until 1 July 2017 | 1 | |||
| Not proceeding with the additional increase to FTB A payments | Commonwealth Budget 2013-14 | N/A | 1 | |||
| Cap deduction for work-related self-education expenses to $2,000 per year | Treasurer's Media Release No 48, 13 April 2013 | 1 July 2014 | 1 | |||
| Bring lump sum and income reconciliation period for FTB and Child Care Assistance in line with lodging tax returns | Commonwealth Budget 2013-14 | 1 July 2012 | 1 | |||
| Provide concessional loans to eligible primary production business for the purpose of productivity enhancements and debt refinancing | Commonwealth Budget 2013-14 | 1 July 2013 | 1 | |||
| Increase the Medicare Levy from 1.5% to 2% | Medicare Levy Amendment (DisabilityCare Australia) Bill 2013 | 1 July 2014 | 1 | |||
| Address aggressive tax structure that seek to shift profits by artificially loading debt into Australia | Commonwealth Budget 2013-14 | 1 July 2014 | 1 | |||
| Increase the Farm Management Deposit non-primary production income threshold from $65,000 to $100,000 | Treasurer media release No 56, 27 April 2013 | 1 July 2014 | 1 | |||
| Various amendments to protect the corporate tax base from erosion and loopholes | Commonwealth Budget 2013-14 | Various application dates | 1 | |||
| Increase Medicare levy low-income threshold for family to $33,693 and for each dependent child or student to $3,094 | Tax Laws Amendment (Medicare Levy) Bill 2013 | 1 July 2012 | 1 | |||
| Defer personal income tax cut scheduled to commence on 1 July 2015 | Commonwealth Budget 2013-14 | 1 |
| Proposed amendment | Refer to | Proposed application date | Announcement | Consultation | Before Parliament | Waiting Royal Assent |
|---|---|---|---|---|---|---|
| Ensure Part IVA continues to be effective in countering schemes carried out as part of broader commercial transactions | Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013 | Schemes – 16 November 2012 | 1 | |||
| Improving compliance through third part reporting and data matching | Commonwealth Budget 2013-14 | 1 | ||||
| ATO to undertake compliance activity in relation to taxpayer using trust structures | Commonwealth Budget 2013-14 | 1 | ||||
| Increased compliance reviews in the payments system | Commonwealth Budget 2013-14 | 1 July 2013 in relation to 2010-11 | 1 | |||
| Update a number of tax and super threshold to reflect changes by ABS to the reporting frequency of average weekly ordinary time earnings | Impact on tax and superannuation provisions indexed to average weekly ordinary time earnings - Proposals paper | 1 July 2013 | 1 |
| Proposed amendment | Refer to | Proposed application date | Announcement | Consultation | Before Parliament | Waiting Royal Assent |
|---|---|---|---|---|---|---|
| Update the method of determining the taxable value of airline transport fringe benefits to market value | Tax and Superannuation Laws Amendment (2013 Measures No. 1) Bill 2013 | Benefits - 7.30pm (AEST) 8 May 2012 | 1 | |||
| Removal of concessional treatment for in-house fringe benefits accessed through a salary sacrifice arrangement | Tax Laws Amendment (2012 Measures No. 6) Bill 2012 | 22 October 2012 | 1 | |||
| Change the allowed temporary absence from Australia for accessing certain family and parental payments from 3 years to 1 year | Commonwealth Budget 2013-14 | 1 July 2014 | 1 |
| Proposed amendment | Refer to | Proposed application date | Announcement | Consultation | Before Parliament | Waiting Royal Assent |
|---|---|---|---|---|---|---|
| Extension of the GST instalment system to allow access for small businesses that are in a net refund position | Tax and Superannuation Laws Amendment (2013 Measures No. 2) Bill 2013 | Royal Assent | 1 | |||
| Clarify circumstances where restrictions on GST refunds apply and allow self assessment of GST refunds | Refunding excess GST (2nd round of Exposure Draft) | 17 August 2012 | 1 | |||
| Amend the GST law to address compliance difficulties faced by certain segments of the transport industry | GST treatment of cross border transport: minor amendments | Unknown | 1 | |||
| Ensure taxpayers are able to use consideration method, valuation method or GST-inclusive method when calculating the margin on subdivided land | Tax Laws Amendment (2012 Measures No. 6) Bill 2012 | Royal Assent | 1 |
| Proposed amendment | Refer to | Proposed application date | Announcement | Consultation | Before Parliament | Waiting Royal Assent |
|---|---|---|---|---|---|---|
| Update provisions in Div 6, rewrite into ITAA1997, better align 'income of the trust estate' with 'net income of the trust estate' | Modernising the Taxation of Trust Income - Options for Reform Assistant Treasurer’s Press Release No.080 of 2012 | 1 July 2014 | 1 | |||
| Reform of the taxation of fixed trusts | Taxation of trust income – options for reform | 1 July 2014 | 1 |
| Proposed amendment | Refer to | Proposed application date | Announcement | Consultation | Before Parliament | Waiting Royal Assent |
|---|---|---|---|---|---|---|
| Reforms to the foreign source income attribution rules, including the modernisation of the CFC rules and the development of a FA | Reform of the foreign source income deferral rules - ED | Royal Assent | 1 |
| Proposed amendment | Refer to | Proposed application date | Announcement | Consultation | Before Parliament | Waiting Royal Assent |
|---|---|---|---|---|---|---|
| Consolidation of eight dependency tax offsets | Tax and Superannuation Laws Amendment (2013 Measures No. 2) Bill 2013 | 1 July 2012 | 1 | |||
| Means testing the net medical tax offset | Tax Laws Amendment (2012 Measures No. 6) Bill 2012 | 1 July 2012 | 1 | |||
| Availability of R&D quarterly credits | Quarterly R&D credits: ED | Instalment quarters starting on and after 1 January 2014 | 1 | |||
| Phase out the net medical expenses tax offset (NMETO) with transitional arrangements | Commonwealth Budget 2013-14 | Phase out 1 July 2013 | 1 |
