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Restoring integrity in the Australian tax system



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HON. J.B. HOCKEY MP Treasurer

SENATOR THE HON. ARTHUR SINODINOS AO Assistant Treasurer

Wednesday, 6 November 2013

Restoring Integrity In The Australian Tax System

The Coalition is determined to provide stable and predictable Government.

Soon after the Government was elected we were advised that 96 tax and superannuation announcements, with one dating back as far as March 2001, had not been legislated.

Four of these have been dealt with as part of the carbon and mining tax repeal packages.

Today we are dealing with the final backlog of 92 measures of announced but unlegislated tax and superannuation measures.

This backlog has created significant operational uncertainty for businesses and consumers.

The Government is determined to resolve all policies relating to these matters by 1 December 2013 for inclusion in the Mid-Year Economic and Fiscal Outlook (MYEFO).

The Government intends that the bulk of legislation that is to be progressed should be passed by the Parliament by 1 July 2014.

Of the 92 unlegislated and unresolved tax and superannuation changes, the Government will proceed with 18 initiatives. A further three initiatives will be significantly amended.

The Government will not proceed with seven initiatives.

Assistant Treasurer Arthur Sinodinos, with assistance from the Board of Taxation will undertake consultation with tax experts, including a number drawn from the Board’s advisory panel over the next two weeks with a disposition not to proceed with the remaining 64 measures.

It will be an expedited and thorough review with industry, focusing on whether there are any unintended consequences from not proceeding with the measures or whether there are compelling reasons why the measure should proceed. We are advised that the fiscal impact of the vast bulk of the remaining 64 initiatives is expected to be minimal.

This package of taxation measures will provide certainty to business and significantly reduce red tape and associated costs.

Importantly it will provide consumers, particularly those with significant education costs, with certainty.

This package will prevent an estimated 10 Bills and hundreds of pages of legislation from proceeding.

In addition, there will be legislated protection for any taxpayer who has self-assessed with announced changes that the Government will not proceed with.

Moreover taxpayers that have complied with previous announcements that will no longer proceed, and have paid additional taxation, will be entitled to a refund. We are advised by the Treasury that the financial impact of this initiative is expected to be minimal.

This is part of our ongoing process to restore simplicity and fairness to the Australian tax system.

The integrity of our tax system will further be enhanced by a range of other reforms to be announced in coming months.

Among the seven measures the Government will not proceed with are:

• Self-Education Expenses Cap (Announced as part of the 2013-14 Budget, and delayed for one year in the 2013 Economic Statement)

The Government will not proceed with Labor’s announcement to put a $2,000 cap on the amount people can deduct as self-education expenses, including training and educational courses, textbooks and other accreditation expenses.

Not proceeding with this measure means that these expenses will continue to be deductible according to the normal rules.

The highest number of self-education claims over $2000 (ie 80%) come from people earning less than $80,000 per annum.

We have been advised that there is no credible evidence of substantial abuse of this deduction. If credible evidence of systematic abuse emerges, then the Government will revisit this issue. Moreover the economic cost of this initiative is substantial. This was recognised by the previous Government which delayed the implementation of their proposal

• Labor’s $1.8 billion Fringe Benefits Tax hit on the car industry. (Labor announced the measure on 16 July 2013 and documented it in the 2013 Economic Statement)

During the 2013 election the Coalition pledged not to continue with Labor’s $1.8 billion Fringe Benefits Tax change that would make it harder for people to have a company or salary sacrificed vehicle. The Coalition Government today confirms it will not proceed with this measure.

• Tax on Superannuation Pensions - tax on earnings on super assets supporting retirement income streams (Announced in April 2013 and documented in the 2013-14 Budget)

The Coalition Government will not proceed with Labor’s announcement which would have taxed people’s superannuation pension earnings above $100,000 in the draw-down phase.

The complexity and compliance costs associated with this initiative are extreme and essentially undeliverable.

This is a demonstration of the Government’s commitment to provide certainty for superannuation fund members by making no adverse unexpected changes to superannuation during our first term.

The Government acknowledges that not proceeding with these and other measures will negatively impact on the underlying cash balance by $2.4 billion over the current forward estimates period.

The Government will also amend three measures, with a Budget cost of $700 million over the forward estimates, including:

• Thin Capitalisation Changes - relating to tax structures that seek to shift profits through debt loading. (Announced as part of the 2013-14 Budget)

The Coalition will not proceed with Labor’s proposal to deny deductions made under section 25-90 of the Income Tax Assessment Act 1997 because the revenue is essentially unrealisable and it would impose unreasonable compliance costs on Australian businesses. Australian companies have been able to claim deductions for interest and other debt-related expenses for their overseas investment, thanks to a Coalition measure in 2001, and will be able to continue to do so now that the Coalition will not proceed with this measure. We will instead introduce a targeted anti-avoidance provision after detailed consultation with stakeholders. Details of this consultation will be announced before the end of the year.

• Offshore Banking Unit (Announced as part of the 2013-14 Budget)

The Government will not proceed with the part of this measure that excludes all related party transactions but have a targeted integrity measure to provide certainty for the industry. It will help Australian banks compete on a level playing field overseas, through access to a competitive tax rate, and attract activity to their Australian operations.

The Government will continue to work closely with stakeholders to develop targeted rules to address the integrity issues with the current rules. Consultation with industry will begin soon.

The Government will proceed with 18 un-enacted measures, maintaining close to $11 billion in revenue over the forward estimates, including:

• Tobacco Tax Changes (Announced as part of the 2013-14 Budget and the 2013 Economic Statement)

One measure indexes the tobacco excise and customs duty to Average Weekly Ordinary Time Earnings (AWOTE) instead of the Consumer Price Index (CPI). Indexing to AWOTE means that it will increase at a faster rate. The indexation occurs twice a year.

The second measure implements 4 additional increases to tobacco excise and customs duty on 1 December 2013, 1 September 2014, 1 September 2015, and 1 September 2016

• Net Medical Expenses Tax Offset (NMETO) phase out (Announced as part of the 2013-14 Budget)

The NMETO provides an offset for people when their medical expenses are high. The phasing out will allow current claimants to remain eligible for the offset until 2014-15.

The Government provides support for people with high medical expenses through Medicare safety nets. The NMETO provides no assistance to those with high medical expenses but no tax liability.

• Managed Investment Trusts The new tax regime for Managed Investment Trusts along with the third tranche of the Investment Manager Regime reaffirms our commitment to growing Australia’s financial services industry by making them more attractive in foreign markets. It will establish MITs in their own right with a transparent framework, aimed at driving demand. • Farm finance - Support for farmers

The Government will support regional Australia by increasing the non-primary production income eligibility threshold for Farm Management Deposits from $65,000 to $100,000.

[ENDS]

Proceed as announced

Item Measure title and description Announcement Date of effect Net financial impacts ($m,

UCB) already provisioned in the forward estimates^

1 Anti-smoking strategy — staged increases in excise on tobacco and tobacco-related products. 12.5 per cent increases in tobacco excise on 1 Dec 2013, and 1 Sept 2014, 2015 and 2016.

Economic Statement 2013 1-Dec-13

5,240.0

2 Protecting the corporate tax base from erosion and loopholes — targeting the deduction for exploration to genuine exploration activity. Restricts the immediate deduction for the cost of acquiring mining rights, so that it is only available for genuine exploration activities (as originally intended).

2013-14 Budget

14-May-2013

14-May-13

1,100.0

3 A plan for Australian jobs — research and development tax incentive — better targeting. Denies access to the R&D tax incentive for large companies with incomes of $20 billion or more.

2013-14 Budget

14-May-2013

Media release 17-Feb-13

1-Jul-13

1,050.0

4 Personal income tax — net medical expenses tax offset phase out. Proceeds with phasing out the net medical expenses tax offset, with transitional arrangements for current claimants.

2013-14 Budget

14-May-2013

1-Jul-13

963.5

5 Excise and excise-equivalent customs duty — index tobacco excise to average weekly ordinary time earnings. Indexes tobacco excise to AWOTE instead of CPI, from March 2014.

2013-14 Budget

14-May-2013

1-Mar-14

740.0

6 Protecting the corporate tax base from erosion and loopholes — closing loopholes in the consolidation regime. Improves the integrity of the consolidation regime and prevents entities claiming double deductions.

2013-14 Budget

14-May-2013

14-May-13

540.0

7 Tax compliance — improving compliance through third party reporting and data matching. Enhances the information reported to the ATO to improve taxpayer compliance.

2013-14 Budget

14-May-2013

1-Jul-14

354.0

8 Superannuation reforms — transfer of lost member accounts to the ATO. Increases the threshold below which lost accounts are required to be transferred to the ATO from $2,000 to $4,000, and then to $6,000.

14 May 2013 and 2 August 2013 31-Dec-15

815.9

9 Protecting the corporate tax base from erosion and loopholes — improving the integrity of the foreign resident capital gains tax regime: withholding tax regime and technical amendments. Addresses issues in administering Australia’s foreign capital gains tax regime; and also clarifies the operation of Australia’s taxing rights over indirect Australian real property interests.

2013-14 Budget

14-May-2013

1-Jul-16

219.2

14-May-13

10 Managed investment trusts — government response to the Board of Taxation review. Introduces a new tax regime for managed investment trusts which will increase certainty and reduce compliance costs.

2009-10 Budget 2010-11 Budget 2012-13 MYEFO

1-Jul-14

-195.0

11 Protecting the corporate tax base from erosion and loopholes — preventing ‘dividend washing.’ Closes a loophole that enables sophisticated investors to ‘double dip’ on franking credits.

2013-14 Budget 1-Jul-13

60.0

12 Farm finance — support for farmers — farm management deposits scheme. Increases the off-farm income exclusion threshold and facilitates consolidation of deposits. 2013-14 Budget 14-May-2013

Media release 27-April-13

1-Jul-14

-13.0

13 Philanthropy — updating the list of specifically listed deductible gift recipients— Bali Peace Park. Allows Bali Peace Park to collect gifts that are tax deductible for the donor. Economic Statement 2013

16-Dec-11

-0.4

14 Philanthropy — updating the list of specifically listed deductible gift recipients — National Arboretum Canberra. Allows the National Arboretum Canberra to collect gifts that are tax deductible for the donor.

PEFO 2013 1-Jul-13 ..

15 Foreign Account Tax Compliance Act — Australia and the US commence discussions. To work towards signing and enacting a treaty-status IGA with the US to enable the financial sector to comply with US FATCA reporting rules.

Media Release November 2012 Royal Assent

0.0

16 International tax — revised Australia-Switzerland tax treaty. Gives force of law to the revised Australia-Switzerland tax treaty. Economic Statement 2013

1-Jul-15

0.0

17 Managed investment trust withholding tax — providing certainty for foreign pension funds. Allows pension funds to access the managed investment trust withholding tax regime (as intended).

Economic Statement 2013 1-Jul-08

0.0

18 International tax — investment manager regime prospective arrangements (element 3). Extends the conduit income measure to exempt foreign managed funds from tax on gains from the disposal of foreign non-portfolio investments; and to exempt those funds from tax on gains from the disposal of certain portfolio Australian financial arrangements.

2012-13 Budget

8-May-12

Media release 6-Dec-11

1-Jul-11

*

Total 10,874.2

UCB = Underlying Cash Balance ^ The financial impact of agreeing to proceed with these measures is zero since they are already provisioned in the forward estimates.

Proceed with amendment

Item Measure Publication Start date Net financial impacts

($m, UCB) over forward estimates, as originally announced

Net financial impacts of decisions ($m, UCB) over forward estimates

19 Protecting the corporate tax base from erosion and loopholes — addressing aggressive tax structures that seek to shift profits by artificially loading debt into Australia — proceed with amendments.

 Tightening and improving the thin capitalisation rules is to proceed as previously announced.  Changes to the exemption for foreign non-portfolio dividends is to proceed as previously announced.  The abolishment of the section 25-90 deduction will not proceed. Instead the

Government will commence consultations on a targeted integrity rule to address certain conduit arrangements.

Not proceeding with the abolishment of the section 25-90 deduction will reduce compliance costs and red tape.

2013-14 Budget

Media Release 71 of 14-May-13

1-Jul-14

1,490.0 -600.0

20 Protecting the corporate tax base from erosion and loopholes — closing loopholes in the Offshore Banking Unit regime - proceed with amendments. Addresses integrity issues associated with related party dealings and better targets the regime to genuine mobile financial sector activities. The Government will not proceed with the measure to exclude all related party dealings but instead will develop targeted rules to address integrity concerns.

2013-14 Budget

14-May-13

1-Oct-13

320.0 -100.0

21 Proceed with previously announced measure to restrict GST refunds — proceed with amendments. Restricts refunds of overpaid GST. Amendments will address a recent AAT finding it doesn’t have jurisdiction to consider refund matters.

2012-13 MYEFO 17-Aug-12 -2.0 0.0

Total -1,808.0 -700.0

UCB = Underlying Cash Balance

Do not proceed

Item Measure Publication Start date Net financial impacts

($m, UCB) for not proceeding

22 Fringe benefits tax — treatment of car fringe benefits - do not proceed. Does not proceed with an amendment to the fringe benefits arrangements for cars. Economic Statement 2013

1-Apr-14

-1,794.9

23 Imposing a tax for earnings on superannuation assets supporting retirement income streams — do not proceed. Does not proceed with a tax on investment earnings above $100,000 p.a. on superannuation assets supporting retirement income streams.

2013-14 Budget

14-May-13

Media release 4-April-13

1-Jul-14

-313.0

24 Imposing a cap to work-related self-education expenses — do not proceed. Does not proceed with introducing an annual $2,000 cap on work-related self-education expense deductions.

2013-14 Budget and Economic Statement 2013

1-Jul-15

-266.7

26 Reforms to retirement incomes — establishment of a council of superannuation guardians — do not proceed. Does not proceed with the creation of the Super Council or the Charter of Superannuation Adequacy and Sustainability.

Economic Statement 2013 Royal Assent

7.5

27 Luxury car tax — tax-free importation of cars by public museums — do not proceed. Does not proceed with legislative amendments to allow public museums and other eligible entities to import cars free of the luxury car tax.

2011-12 Budget

11-May-11

Royal Assent

1.5

28 Philanthropy — updating the list of specifically listed deductible gift recipients — Tasmanian Centre for Global Learning — do not proceed. Does not proceed with PEFO 2013 1-Jul-13

..

allowing Tasmanian Centre for Global Learning to collect gifts that are tax deductible for the donor. 8-Aug-13

29 Low value import threshold — set threshold by regulation — do not proceed. Does not proceed with the separation of the low value import threshold for customs duty and GST purposes as the Government has not yet considered the business case on the low value import threshold.

Media Release 152 of 3-Jan-12 N.A.

0.0

Total -2,365.6

UCB = Underlying Cash Balance; N.A. = not applicable

Further consultation required

Item Measure Publication Start date Net financial impacts ($m,

FB) over the forward estimates as originally announced

25 Research and development tax incentive — quarterly credits. Allows the R&D refundable tax offset to be provided in quarterly instalments. 2013-14 Budget 14-May-2013

Media release 12-April-13

1-Jan-14

7.1

30 Venture Australia — enhancing taxation arrangements. Makes minor changes to the tax arrangements for venture capital investment and retains Pooled Development Funds. 2013-14 Budget 14-May-2013

Media release 17-Feb-13

Royal Assent

*

31 Comprehensive compliance regime for gaseous fuels. Protects revenue by providing a compliance regime specific to gaseous fuels to ensure untaxed fuel that enters the market is used for the stated purpose.

19 Sept 2012 (on introduction) Royal Assent

0.0

32 Bad debts — ensuring consistent treatment in related party financing arrangements (symmetric treatment of bad debts). Ensures that if a lender claims a deduction for writing off a debt, then the borrower would recognise a similar amount of income.

2012-13 Budget

8-May-12

8-May-12

80.0

33 Not-for-profit sector reforms — better targeting not-for -profit tax concessions. Protects the revenue base by ensuring that tax concessions provided to not-for-profit entities are targeted only at those activities which further their altruistic purposes.

2011-12 Budget

11-May-11

1-Jul-14

0.0

34 Capital gains tax — strengthening certain integrity provisions in the scrip for scrip roll-over. Tightens the law to make it harder for companies and trusts to avoid capital gains tax when they sell subsidiary companies other than as part of a genuine merger or restructure of a business.

2012-13 Budget

8-May-12

8-May-12

0.0

35 Superannuation — clarifying the operation of certain superannuation trust deed clauses. Ensures that trust deed clauses cannot be used to prevent excess amounts from being counted as contributions.

2011-12 MYEFO

Media release 29- Mar-2010

Royal Assent

*

36 Taxation of financial arrangements — amendments to tax hedging rules. Makes minor technical amendments to the taxation of financial arrangements tax hedging rules to provide further clarity.

2011-12 Budget

11-May-11

1-Jul-07

*

37 Philanthropy — reforming the ‘in Australia’ requirements that apply to tax exempt entities. Re-states and clarifies the ‘in Australia’ special conditions for income tax exempt entities and deductible gift recipients to ensure that the relevant entities operate principally in Australia.

2009-10 Budget

12-May-10

Royal Assent

*

38 Superannuation reforms — encouraging the take-up of deferred lifetime annuities. Encourages the take-up of DLAs by providing these products with the same concessional tax treatment that applies to investment earnings on superannuation assets supporting retirement income streams.

2013-14 Budget

14-May-2013

Media release 5-April-13

1-Jul-14

0.0

39 Philanthropy — triennial review of the deductible gift recipient registers. Provides a mechanism to conduct a triennial review of the guidelines for, and organisations on, DGR registers to assess the scope for administrative and policy reform.

2009-10 Budget

12-May-10

1-Jul-13

*

40 GST — Government response to Board of Taxation report: GST administration — changes in use adjustments. Amends the GST change of use provisions to provide higher thresholds, and fewer and shorter adjustment periods.

2009-10 Budget

12-May-10

Royal Assent

*

41 GST — Government response to Board of Taxation report: GST administration — review treatment of vouchers. Reviews the GST treatment of vouchers having regard to international developments.

2009-10 Budget

12-May-10

Royal Assent

*

42 GST — Government response to Board of Taxation report: GST administration — review multi-party transactions. Provides further examination of the treatment of multi-party transactions in order to eliminate unrecoverable tax, having regard to overseas work in this area.

2009-10 Budget

12-May-10

Royal Assent

*

43 Stronger Super — implementation of SuperStream reforms (stronger super reforms — inter-fund consolidation of accounts less than $1,000). Requires the ATO to initiate consolidation of certain members’ superannuation accounts, affected funds are then required to facilitate consolidation between funds unless the member opts out.

2012-13 Budget

8-May-12

1-Jul-14

#

44 International tax — review of the foreign source income anti-tax-deferral (attribution) regimes. Modernises Australia’s controlled foreign company rules to ensure Australian residents cannot accumulate income in offshore entities and thereby defer, or even avoid Australian tax.

2009-10 Budget

12-May-10

1-Jul-14

*

45 Self-managed superannuation funds — acquisitions and disposals of certain assets between related parties. Prescribes rules for the acquisition and disposal of certain assets between SMSFs and related parties.

2011-12 Budget

11-May-11

1-Jul-13

0.0

46 Capital gains tax — look-through treatment for earn out arrangements. Treats earn out payments as part of the value of the business asset for CGT purposes. 2010-11 Budget 12-May-10

Royal Assent

-15.0

47 (a) Income tax treatment of instalment warrants 2010-11 Budget

12-May-10

Media release 10-Mar-10

1-Jul-07

.. (b) Look-through treatment of instalment warrants and similar arrangements. Treats an investor in an instalment warrant as the owner of the underlying asset for tax purposes.

2011-12 Budget

11-May-11

Media release 10-Mar-10

48 GST — Cross border transactions — ‘connected with Australia’ rules. Reduces the number of non-residents who are unnecessarily drawn into Australia’s GST system, improving competiveness of Australian suppliers.

2010-11 Budget

12-May-10

Royal Assent

..

49 Superannuation — verification of self-managed superannuation funds members and bank accounts [Cooper review]. Ensures superannuation money is transferred to a valid SMSF bank account and provides a register so APRA funds can check SMSF details to meet data and e-commerce standards.

2011-12 Budget

11-May-11

Royal Assent

#

50 Income tax relief for water reforms. Provides CGT and capital allowance roll overs to ensure that tax does not impede water reforms. 2011-12 Budget 11-May-11

1-Jul-09

*

51 Improvements to the tax running balance account provisions. Rewrites the tax law’s RBA provisions to provide more flexibility to manage tax debts and entitlements more efficiently, and in ways more useful to taxpayers.

2010-11 Budget

12-May-10

tbc

*

52 Philanthropy — improving administration of the cultural gifts program. Transfers responsibility for administering the cultural gifts program from the Ministry for the Arts to the ATO to streamline processes and reduce red tape for donors.

13 March 2013 (Arts Minister) tbc

0.0

53 (a) Capital gains tax — relief for taxpayers affected by natural disasters 2011-12 MYEFO

November 2011

Media release 9-10-2011

1-Jul-11

*

(b) Capital gains tax — broadening relief for taxpayers affected by natural disasters. Provides CGT relief for taxpayers participating in replacement asset programs after a natural disaster.

2012-13 Budget

8-May-12

54 GST — Government response to Board of Taxation report: GST administration — pre-registration adjustments. Allows an entitlement for an adjustment to the extent of the remaining economic value for things acquired before an entity was registered for GST.

2009-10 Budget

12-May-10

Royal Assent

*

55 GST — Government response to Board of Taxation report: GST administration — reverse charge for going concerns and farm land and supplies of farmland for farming. Replaces the GST free concessions for the supply of going concerns and farm land supplied for farming with a reverse charge mechanism.

2009-10 Budget

12-May-10

Royal Assent

*

56 GST — Government response to Board of Taxation report: GST administration — adjustments on cessation of registration. Removes requirement for GST registered entities to make adjustments in the event that they deregister, provided the goods are effectively exported and used in the non-Australian enterprise.

2009-10 Budget

12-May-10

Royal Assent

*

57 Capital gains tax and other roll-overs for amalgamations of indigenous corporations. Provides a CGT roll-over for Aboriginal and Torres Strait Islander corporation amalgamations.

2011-12 Budget

11-May-11

1-Jul-07

*

58 Taxation exemptions for foreign governments (sovereign immunity). Clarifies and codifies the exemption currently provided to foreign governments and their investment bodies for dividend and interest income from passive investment in Australia.

2005-06 MYEFO

Media release 4-Nov-05

Royal Assent

0.0

59 Loss recoupment rules — multiple classes of shares. Improves the operation of the tax loss rules in a limited range of circumstances (i.e. where a company has non-standard classes of shares or when it joins a consolidated group).

2008-09 Budget 1-Jul-02

#

60 Securities lending arrangements tax rules - extending the scope to address insolvency issues. Addresses industry concerns about the tax treatment of securities lending arrangements.

2011-12 Budget

11-May-11

1-Jul-08

*

61 Functional currency rules — extending the range of entities that can use a functional currency. Allows trusts and partnerships to use the functional currency rules when preparing their Australian income tax returns.

2011-12 Budget

11-May-11

Royal Assent

*

62 Capital gains tax — exemption for incentives related to renewable resources or for preserving environmental benefits. Exempts from CGT rights to Government incentives related to renewable resources and preserving environmental benefits.

2011-12 Budget

11-May-11

1-Jul-07

*

63 (a) Capital gains tax — minor amendments ensuring the proper functioning of the capital gains tax provisions — deceased estates 2011-12 Budget 11-May-11

Royal Assent

..

(b) Capital gains tax — refinements to the law — deceased estates. Allows testamentary trusts to distribute the assets of a deceased without CGT implications. 2012-13 Budget 8-May-12

64 (a) Capital gains tax — minor amendments ensuring the proper functioning of the capital gains tax provisions — life insurance policies 2011-12 Budget 11-May-11

1-Jul-07

..

(b) Capital gains tax — broadening the exemptions for certain compensation payments and insurance policies. Exempts from CGT certain compensation payments and life insurance policies received by super funds and trustees.

2012-13 Budget

8-May-12

65 (a) Capital gains tax — minor amendments ensuring the proper functioning of the capital gains tax provisions — restructure roll-overs 2011-12 Budget 11-May-11

(a) 1-Nov-08

..

(b) Capital gains tax — amendment to include concessional treatment for revenue assets and trading stock 2011-12 MYEFO November 2011

(b) 10-May-11

(c) Capital gains tax — amendment to the revenue asset and trading stock roll-overs for interposing a company. Extends the CGT roll-overs for business restructures. 2012-13 Budget 8-May-12

(c) 8-May-12

66 Superannuation — greater certainty in relation to fund mergers. Clarifies that the proportioning rule in the superannuation tax law does not apply to fund mergers. 2012-13 MYEFO 1-Jul-14 0.0

67 Stronger Super — unlawful payments from regulated superannuation funds — promotion of illegal early release schemes. Introduces penalties for promoting schemes designed to obtain the illegal release of superannuation benefits.

2011-12 Budget

11-May-11

Royal Assent

#

68 Stronger Super — self managed super funds — rollovers to SMSFs. Makes rollovers to SMSFs a ‘designated service’ under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, requiring super funds to introduce additional checks and safeguards.

2011-12 Budget

11-May-11

1-Jul-13

#

69 Stronger Super — self managed super funds-administrative directions and penalties. Gives the ATO flexible and cost-effective penalty options to deal with SMSFs that breach the law.

2011-12 Budget

11-May-11

1-Jul-13

#

70 SuperStream — transferring superannuation contributions with no TFN to the ATO. Requires superannuation funds to transfer superannuation contributions without an associated tax file number to the ATO as unclaimed money.

2011-12 Budget

11-May-11

1-Jul-13

0.0

71 Stronger Super — unlawful payments from regulated superannuation funds — income tax rates amendment. Taxes super benefits received illegally at 45 per cent plus Medicare levy.

2011-12 Budget

11-May-11

1-Jul-13

#

72 SuperStream — new employee engagement process. Integrates processes for tax file number declaration and choice of superannuation fund and prompts members to consolidate accounts.

21 Sept 2011, 2012-13 Budget

8-May-12

1-Jul-14

#

73 Superannuation — require funds to report contributions either quarterly or every six months. Requires funds to notify members whether contributions have been received, either quarterly or six monthly (to alert members about unpaid superannuation).

2011-12 Budget

11-May-11

1-Jul-13

..

74 Debt/equity tax rules — limiting scope of integrity rule. Limits the scope of an integrity provision in the debt/equity rules to prevent unintended outcomes. 2011-12 MYEFO November 2011

1-Jul-01

*

75 Components of the simplified imputation system. Completes the re write of the imputation integrity rules. Treasurer PR 16 of 22 March 2001

1-Jul-02

0.0

76 Off-market share buybacks — implementing the board of taxation recommendations. Implements the recommendations of the Board of Taxation’s 2008 report on modifying the taxation treatment of off-market share buy backs.

2009-10 Budget

12-May-10

Royal Assent

*

77 Consolidation — calculation and collection of income tax liabilities. Amends minor technical deficiencies in respect to calculation and collection of income tax liabilities for consolidated groups.

2010-11 Budget

12-May-10

1-Jul-02

0.0

78 Improvements to the company loss recoupment rules. Modifies company loss recoupment rules to correct minor technical issues. 2011-12 Budget 11-May-11

1-Jul-11

*

79 GST — Government response to Board of Taxation report: GST administration — simplify grouping rules. Broadens and simplifies the GST grouping membership rules and enables holding companies to be entitled to register and group for GST purposes.

2009-10 Budget

12-May-10

Royal Assent

*

80 GST — Government response to Board of Taxation report: GST administration — clarify treatment of general law partnerships. Clarifies the treatment of general law GST partnerships.

2009-10 Budget

12-May-10

Royal Assent

*

81 GST — Government response to Board of Taxation report: GST administration — technical amendments to adjustment provisions. Amends the GST law to ensure consistency and certainty in the use of the terms ‘apply' and ‘application' in the adjustment provisions.

2009-10 Budget

12-May-10

Royal Assent

*

82 GST — Government response to Board of Taxation report: GST administration — GST-clarifying treatment of bare trust. Clarifies the GST treatment of bare trusts. 2009-10 Budget 12-May-10

Royal Assent

*

83 Uniform capital allowance regime — technical changes. Amends some minor deficiencies in the asset depreciation (capital allowance) rules and improves certainty for taxpayers in limited circumstances.

2009-10 Budget

12-May-10

1-Jul-01

*

84 Consolidation — operation of the rules following a demerger. Addresses minor technical issues that can sometimes arise for consolidated groups following a demerger. 2010-11 MYEFO 9-Nov-10 0.0

85 Taxation of financial arrangements — foreign currency regulations — technical and compliance cost savings amendments. Makes minor technical amendments to the foreign currency provisions to provide further clarity.

2004-05 MYEFO

December 2004

1-Jul-03

*

86 Consolidation — further improvements to the operation of the income tax law for consolidated groups — changes to depreciation rates. Denies the use of certain depreciation arrangements by a tax consolidated group in certain circumstances.

2007-08 Budget

9-May-07

1-Jul-02

*

87 Consolidation — further improvements to the operation of the income tax law for consolidated groups — extending the single entity rule to discount capital gains and CGT event K6. Modifies the capital gains tax integrity rules to address interactions with the consolidation regime.

2007-08 Budget

9-May-07

8-May-07

*

88 Consolidation — further improvements to the operation of the income tax law for consolidated groups — distribution of net income upon entry or exit of a trust. Clarifies the tax outcome for the beneficiaries of a trust that joins or leaves a consolidated group part way through the income year.

2007-08 Budget

9-May-07

1-Jul-07

*

89 Definition of ‘not-for-profit’ in the tax laws. Provides a definition of ‘not-for-profit’ in the tax laws. 17-Apr-12 tbc

0.0

90 GST — Government response to Board of Taxation report: GST administration — shortfall interest charge. Applies the shortfall interest charge to GST and other taxes reported on the BAS.

2009-10 Budget

12-May-10

Royal Assent

*

91 GST — Government response to Board of Taxation report: GST administration — cash and accrual accounting. Proposes the Government consider the merits of all transactions above a certain value (and meeting other criteria) be accounted for using accrual accounting.

2009-10 Budget

12-May-10

Royal Assent

*

92 GST — government response to Board of Taxation report: GST administration — clarify treatment of tax law partnerships. Clarifies the GST treatment of tax law partnerships, including where a tax law partnership is formed or dissolved and when it makes a supply or an acquisition.

2009-10 Budget

12-May-10

Royal Assent

*

Total 72.1

FB = Fiscal Balance; * = unquantifiable; .. = not zero, but rounded to zero; # = separate elements from single measure at announcement - costs not available