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Annual Regulatory Plan – Past changes

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Type of entry Past change
Title ACCC monitoring of prices, costs and profits at Australia’s four major airports
Description of issue The ACCC will continue to monitor prices of aeronautical services and car parking services at Sydney, Melbourne, Brisbane and Perth airports. The ACCC will no longer monitor prices at Adelaide Airport. This measure gives effect to part of the Government’s response to the Productivity Commission’s inquiry into the Economic Regulation of Airport Services.
The direction from the Assistant Treasurer to the ACCC to monitor prices, costs and profits of aeronautical services.
The direction from the Assistant Treasurer to the ACCC to monitor prices, costs and profits of car parking services.
The Regulation Impact Statement which was prepared on this matter.
Date of effect 1 July 2012.
Contact details John Burch
Manager
Infrastructure and Transport Unit
Telephone: (02) 6263 3201
Email: john.burch@infrastructure.gov.au
Title Superannuation Legislation Amendment (Early Release of Superannuation) Act 2011
Description of issue This measure formally transfers responsibility for the general administration of early release of superannuation benefits on compassionate grounds from the Australian Prudential Regulation Authority (APRA) and the Commissioner of Taxation to the Chief Executive Medicare (within the Department of Human Services (DHS)).
This measure also permits the payment of an amount of the levy monies APRA raises, to the Commonwealth, to cover DHS’s costs of administering the early release on compassionate grounds function.
Date of effect The Superannuation Legislation Amendment (Early Release of Superannuation) Act 2011 commenced on 1 November 2011.
Contact details Louise Lilley
Manager
Benefits and Regulation Unit
Personal & Retirement Income Division
Telephone: (02) 6263 3327
Email: Louise.Lilley@treasury.gov.au
Title Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011
Description of issue This first tranche of legislation to implement the Stronger Super reforms establishes the MySuper framework and, in particular:

  • defines a MySuper product;
  • limits a regulated superannuation fund to offering only one MySuper product, except in certain circumstances;
  • allows a registrable superannuation entity (RSE) licensees to apply to the Australian Prudential regulation Authority (APRA) for authorisation to offer a MySuper product;
  • sets out rules on the payment of contributions and account transfers for MySuper products; and
  • sets out the fees that can be charged and the basis on which those fees can be charged to members of a MySuper product.
Date of effect 1 July 2013.
Contact details Kathleen O’Kane
Manager
Superannuation Unit
Financial System Division
Telephone: (02) 6263 3979
Facsimile: (02) 6263 3964
Email: kathleen.okane@treasury.gov.au
Title Superannuation Legislation Amendment (Trustee Obligations and Prudential Standards) Bill 2012
Description of issue This second tranche of legislation to implement the Stronger Super reforms:

  • includes a power for APRA to make prudential standards in relation to superannuation matters;
  • amends existing trustee duties to expand duties for RSE’s;
  • applies new duties to RSE licensees of an RSE that offers MySuper; and
  • applies personal duties to the directors of corporate trustees in their own right.
Date of effect 1 July 2013.
Contact details Kathleen O’Kane
Manager
Superannuation Unit
Financial System Division
Telephone: (02) 6263 3979
Facsimile: (02) 6263 3964
Email: kathleen.okane@treasury.gov.au
Title Foreign Acquisitions and Takeovers Amendment Regulations 2011 (No. 1)
Description of issue The amendment allowed the foreign investment notification threshold for developed commercial real estate to be indexed each year on 1 January to ensure that it does not become more restrictive over time. On 1 January 2012, the notification threshold for developed commercial real estate was increased from $50 million to $53 million.
Date of effect 7 December 2011
Contact details David Earl
Manager
International Investment and Trade Policy Unit
Foreign Investment and Trade Policy Division
Telephone: (02) 6263 2703
Email: david.earl@treasury.gov.au
Title Commonwealth Government Securities Legislation Amendment (Retail Trading) Bill 2012
Description of issue The Bill contains a number of legislative amendments to facilitate the introduction of trading of Commonwealth Government Securities (CGS) on financial markets accessible to retail investors, as follows:
Amendments are made to the Commonwealth Inscribed Stock Act 1911 allowing the Australian Office of Financial Management (AOFM) to make payments in relation to depository interests (beneficial interests) in CGS. It is intended that these depository interests will be quoted on retail financial markets where they can be traded by retail investors. A number of unrelated minor amendments are also made to the legislation.
Amendments are made to the Corporations Act 2001 ensuring that depository interests in CGS are subject to the investor protection and market integrity provisions in the legislation.
Further amendments to the Corporations Act ensure that financial advisers giving personal advice to retail clients about investing in CGS depository interests will have to provide them with relevant information statements written by AOFM and made available on a dedicated website.
Date of effect The amendments will come into effect on the day after royal assent is provided. It is anticipated that this will occur during the Spring 2012 sittings of Parliament (August – November 2012).
Contact details Daniel McAuliffe
Manager
Financial
Markets Unit
Telephone: (02) 6263 2804
Facsimile: (02) 6263 2770
Email: daniel.mcauliffe@treasury.gov.au
Title Corporations Legislation Amendment (Audit Enhancement) Bill 2012
Description of issue The Bill will enhance audit quality by bringing Australia into line with international best practice and by improving the operation of the audit regulation framework.
The Bill:

  • introduces flexibility for listed entities in the auditor rotation requirements;
  • requires audit firms that audit significant entities to publish annual transparency reports;
  • replaces the auditor independence powers of the Financial Reporting Council with a strategic policy role in relation to audit quality;
  • gives ASIC the power to publicly issue an audit deficiency report in relation to specified failures by an audit firm; and
  • allows ASIC to communicate directly with an audited body in relation to significant matters relating to the audit.

The Bill, Explanatory Memorandum, second reading speech and associated documents can be found at: parlinfo.aph.gov.au
The Regulatory Impact Statement can be found on the Office of Best Practice Regulation website.

Date of effect The provisions relating to the ASIC Act (Schedule 2) will commence from Royal Assent.
The provisions relating to the Corporations Act (Schedule 1) will commence 28 days after Royal Assent.
Contact details Scott Rogers
Manager
Corporate Reporting and Accountability Unit
Corporate and Capital Markets Division
Telephone: (02) 6263 3076
Facsimile: (02) 6263 2770
Email: scott.rogers@treasury.gov.au
Title Price Notification Declaration (Australia Post Letter Services) (No. 2) 2011
Description of issue This Declaration requires Australia Post to provide the Australian Competition and Consumer Commission (ACCC) with a notification if it seeks to make any changes (including changes to the prices or terms and conditions) of certain letter services over which it has a statutory monopoly. The ACCC reviews the proposed changes and can either object or not object to the proposal. Australia Post’s Board and its shareholder Ministers are expected to give consideration to the ACCC’s decision before making final determinations authorising the changes.
Link – ComLaw website
Date of effect 1 November 2011
Contact details Michael Gardner
Communications & Infrastructure Access Unit
Infrastructure Division
Telephone: (02) 62632111
Email: Michael.Gardner@treasury.gov.au
Title Corporations Amendment (Phoenixing and Other Measures Act ) 2012 and Corporations Legislation Amendment Regulation 2012 (No. 1)
Description of issue The Corporations Amendment (Phoenixing and Other Measures) Act 2012:

  • provides ASIC with an administrative power to wind up abandoned companies so that workers can access the General Employee Entitlements Redundancy Scheme (GEERS); and
  • repeals existing print media publication requirements concerning notification of corporate insolvency events under the Corporations Act 2001, and replaces them with a requirement to advertise such events in accordance with regulations.

The Corporations Legislation Amendment Regulation 2012 (No. 1) replaces the former print media publication requirements with a requirement for insolvency practitioners and other stakeholders to advertise corporate insolvency events on the ASIC Insolvency Notices website. The Regulation also sets the fees for lodging a notice with ASIC for publication on the ASIC Insolvency Notices website.

Date of effect 1 July 2012
Contact details Alix Gallo
Manager
Governance and Insolvency Unit
Corporations and Capital Markets Division
Telephone: (02) 6263 2870
Email: alix.gallo@treasury.gov.au
Title Business Names Registration Act 2011 and related legislation and regulations
Description of issue The Business Names Registration Act 2011 established the ASIC National Business Names Register which commenced on 28 May 2012.
The National Business Names Register replaced the State and Territory business names registers – businesses now only need to register once (on ASIC’s national register) to trade under a name nationally. Previously a business would need to register a business name in each State or Territory in which they operated.
There will be a significant reduction in the costs to business to register (or to renew) a registration of a business name.
The National Business Names Register is one of the reforms from the COAG National Partnership Agreement to deliver a Seamless National Economy.
A copy of the Business Names Registration Act 2011 can be viewed on the ComeLaw website
Date of effect 28 May 2012
Contact details Alix Gallo
Manager
Governance and Insolvency Unit
Corporations and Capital Markets Division
Telephone: (02) 6263 2870
Email: alix.gallo@treasury.gov.au
Title Insurance Contracts Amendment Regulation 2012 (No. 1)
Description of issue The Insurance Contracts Amendment Regulation 2012 (No. 1) introduced a standard definition of flood to be used in home building, home contents, small business and strata title insurance contracts.
The introduction of a standard definition of flood ensures that situations where neighbouring properties, affected by the same inundation event, will no longer receive different claims assessments because the policies covering them will use the same definition of flood.
Date of effect The Insurance Contracts Amendment Regulation 2012 (No. 1) was registered on 14 June 2012.
While the Insurance Contracts Amendment Regulation 2012 (No. 1) commenced on the date of registration, insurers have a two-year period in which to comply with the Regulation.
However, if, during that period, an insurer decides to rely on the Regulation, the Regulations, as amended, will apply in relation to the insurer and
the contract.
Contact details Michelle Calder
Manager
Financial Services Unit
Retail Investor Division
Telephone: (02) 6263 2084
Email: michelle.calder@treasury.gov.au
Title Insurance Contracts Amendment Act 2012
Description of issue The Insurance Contracts Amendment Act 2012 establishes a legislative framework for the:

  • introduction of a standard definition of flood to be used in home building, home contents, small business and strata title insurance policies; and
  • provision of a one-page key facts sheet which outlines the key information pertaining to particular home building and home contents insurance policies.

The legislative framework provides consumers with improved awareness of what is, and what is not, covered and the extent of that cover in respect to certain prescribed insurance policies.

Date of effect The Insurance Contracts Amendment Act 2012 received Royal Assent on 15 April 2012.
The Insurance Contracts Amendment Act 2012 commenced on the date of Royal Assent.
Contact details Michelle Calder
Manager
Financial Services Unit
Retail Investor Division
Telephone: (02) 6263 2084
Email: michelle.calder@treasury.gov.au
Title Corporations Amendment Regulation 2012 (No. 1)
Description of issue The Regulation:

  • includes carbon units, Australian carbon credit units (ACCUs), and eligible international emissions units (EIEUs) in the definition of financial products;
  • provides a transitional period for a person to register and apply for a licence to provide a financial service in relation to ACCUs, EIEUs and carbon units, and for ASIC to process the licence applications; and
  • imposes a range of disclosure obligations in particular circumstances in lieu of providing a Product Disclosure Statement. These obligations modify the Product Disclosure Statement requirements for ACCUs, EIEUs and carbon units in certain circumstances by requiring entities to provide clients with the website address of the Clean Energy Regulator and inform them of the information in the Regulator’s statement.

Explanatory Statement: Corporations Amendment Regulation 2012 (No. 1) on the ComLaw website

Date of effect 12 April 2012
Contact details Simon Milnes
Analyst
Financial Services Unit
Retail Investor Division
Phone: (02) 6263 3268
Email: simon.milnes@treasury.gov.au
Title Australian Securities and Investments Commission Amendment Regulation 2012 (No. 1)
Description of issue The Regulation:

  • includes Australian carbon credit units, eligible international emissions units and carbon units in the definitions of the Principal Regulations;
  • provides a transitional period until 1 July 2012 to allow affected stakeholders sufficient time to comply with their new obligations before the licensing requirements commence;
  • includes the Clean Energy Regulator as a prescribed agency for the purposes of the Principal Regulations; and
  • includes any obligation from a contract to transfer Australian carbon credit units, eligible international emissions units or carbon units as a prescribed obligation for the purposes of the clearing and settlement facility provision of the Principal Regulations.

Explanatory Statement: Australian Securities and Investments Commission Amendment Regulation 2012 (No. 1) on the ComLaw website

Date of effect 12 May 2012
Contact details Simon Milnes
Analyst
Financial Services Unit
Retail Investor Division
Phone: (02) 6263 3268
Email: simon.milnes@treasury.gov.au
Title Corporations Amendment Regulation 2012 (No. 2)
Description of issue The Regulation amends the Corporations Regulations 2001 to include:

  • a definition of ‘publish’, in relation to ASIC providing notice of the issue of a certificate for the transfer of estate assets and liabilities from a transferring company to a receiving company, and a trustee company providing notice of a licence cancellation or of a voluntary transfer of estate assets and liabilities;
  • changes to the trustee company common fund rules to better reflect industry practice;
  • listing of entities (other than trustee companies or Public Trustees) authorised to carry out transfers of Division 3 securities under Part 7.11 of the Act ;
  • the deletion of a so-called ‘arm’s length’ rule (this has been moved to section 601SCD of the Act );
  • name changes of licensed trustee companies (in Schedule 8AA); and
  • additional State and Territory legislation which are not excluded by the Commonwealth trustee company provisions (in Schedule 8AD).

Explanatory Statement: Australian Securities and Investments Commission Amendment Regulation 2012 (No. 1) on the ComLaw website

Date of effect The Corporations Amendment Regulation 2012 (No. 2) commences:

  1. on 13 April 2011 – sections 1 to 3 and Schedule 1; and
  2. on 12 April 2012 – Schedule 2.
Contact details Simon Milnes
Analyst
Financial Services Unit
Retail Investor Division
Phone: (02) 6263 3268
Email: simon.milnes@treasury.gov.au
Title Corporations Amendment Regulations 2010 (No. 3) Amendment Regulation 2012 (No. 1)
Description of issue The Regulation extends the current deemed licensing regime (for trustee companies seeking to be consolidated) until 31 December 2012.
Explanatory Statement:
Corporations Amendment Regulations 2010 (No. 3) Amendment Regulation 2012 (No. 1) on the ComLaw website
Date of effect 6 May 2010
Contact details Simon Milnes
Analyst
Financial Services Unit
Retail Investor Division
Phone: (02) 6263 3268
Email: simon.milnes@treasury.gov.au
Title Consumer Credit and Corporations Legislation Amendment (Enhancements) Bill 2011
Description of issue Introduces a range of consumer credit reforms, including:

  • the regulation of small amount lending;
  • the regulation of reverse mortgages; and
  • the regulation of consumer leases.

Bill and Explanatory Memoranda – Consumer Credit Legislation Amendment (Enhancements) Bill 2012 on the Parliament of Australia website
Regulation Impact Statements:
Regulation of Consumer Leases and Equity Release Product Reforms
Regulation of Short-term, Small Amount (Payday) Finance

Date of effect The Bill was introduced into the House of Representatives in September 2011. The Bill, as amended, passed the Houser of Representatives on 26 June 2012.
The majority of the reforms are scheduled to come into effect on 1 March 2013. The reforms to introduce a cap on the maximum amount of costs a credit provider can charge are scheduled to come into effect on 1 July 2013.
Contact details Christian Mikula
Manager
Consumer Credit Unit
Retail Investor Division
Phone: (02) 6263 2046
Email: Christian.mikula@treasury.gov.au
Title The National Consumer Credit Protection Amendment (Home Loans and Credit Cards) Act 2011
Description of issue Amends the National Consumer Credit Protection Act 2009 in relation to:

  • the regulation of credit cards; and
  • introduces a requirements on lenders to make available a Key Fact Sheet for credit card contracts and home loans.

Act and Explanatory Memorandum: National Consumer Credit Protection Amendment (Home Loans and Credit Cards) Act 2011 on the ComLaw website
Regulation Impact Statements: the Office of Best Practive Regulation website

Date of effect The requirement in relation to the provision of a Key Facts Sheet for home loans commenced on 1 January 2012. The changes to the regulation of credit cards commence on 1 July 2012.
Contact details Christian Mikula
Manager
Consumer Credit Unit
Retail Investor Division
Phone: (02) 6263 2046
Email: Christian.mikula@treasury.gov.au
Title Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011
Description of issue Amends the Corporations Act 2001 to give effect to the introduction of a ban on conflicted remuneration, including commissions.
This means that licensees and authorised representatives will not be allowed to give or receive payments or non-monetary benefits if the payment or benefit could reasonably be expected to influence financial product recommendations or financial product advice provided to retail clients. Exceptions to the ban on conflicted remuneration are provided in certain circumstances.
Volume payments (payments dependent on the total number or value of financial products of a particular class or classes) will be presumed to be conflicted but it will be open to advisers to prove that they are not.
This reform will encourage financial advisers to become more client-focused, as more of their fees will be paid directly by the client rather than indirectly through product commissions.
Explanatory Memorandum:
Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011 on the Parliament of Australia website
Date of effect Voluntary start from 1 July 2012
Mandatory from 1 July 2013
Contact details Dr Richard Sandlant
Manager
Financial Advice Reform Unit
Retail Investor Division
Phone: (02) 6263 2955
Email: Richard.Sandlant@treasury.gov.au
Title Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011
Description of issue Amends the Corporations Act 2001 to require financial advisers to act in the best interests of their retail clients and place their clients’ interests ahead of their own when developing and providing personal advice.
The best interest’s duty is based on the notion of ‘reasonableness’. Advisers are required to make only ‘reasonable inquiries’ to obtain accurate information from the client and conduct a ‘reasonable investigation’ into relevant financial products. This is designed to protect advisers from clients claiming that the adviser should have done something onerous or unreasonable in order to act in their best interests.
Explanatory Memorandum
Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011 on the Parliament of Australia website
Date of effect Voluntary start from 1 July 2012
Mandatory from 1 July 2013
Contact details Dr Richard Sandlant
Manager
Financial Advice Reform Unit
Retail Investor Division
Phone: (02) 6263 2955
Email: Richard.Sandlant@treasury.gov.au
Title Corporations Amendment (Future of Financial Advice) Bill 2011
Description of issue
  • Amends the Corporations Act 2001 to require financial advisers to request their retail clients to opt-in or renew their advice agreements every two years if clients are paying ongoing fees. This means advisers will be in regular contact with their clients and will need to demonstrate the value of the services they are providing their clients.
  • As an alternative, the Australian Securities and Investments Commission (ASIC) will be given the power to exempt advisers from the opt-in provisions where they are bound by a code of conduct, approved by ASIC, which achieves the same outcome.
  • Corporations Amendment (Future of Financial Advice) Bill 2011

Explanatory Memorandum Corporations Amendment (Future of Financial Advice) Bill 2011 on the Parliament of Australia website

Date of effect Voluntary start from 1 July 2012
Mandatory from 1 July 2013
Contact details Dr Richard Sandlant
Manager
Financial Advice Reform Unit
Retail Investor Division
Phone: (02) 6263 2955
Email: Richard.Sandlant@treasury.gov.au
Title Corporations Amendment (Future of Financial Advice) Bill 2011
Description of issue Amends the Corporations Act 2001 to strengthen ASIC’s licensing and banning powers by giving ASIC powers to:

  • refuse to issue or cancel/suspend a licence where the licensee is likely to contravene their obligations instead of needing to establish that they will contravene or have contravened their obligations;
  • ban individuals from providing financial services if they are likely to contravene a financial services law; and
  • ban individuals from providing financial services if they are not of good fame and character or not adequately trained or competent to provide financial services.

The new powers will assist ASIC to protect investors by restricting or removing from the industry participants who might cause or contribute to investor losses. These changes respond to a recommendation made by the Parliamentary Joint Committee on Corporations and Financial Services in its 2009 report, Financial Products and Services in Australia.
Corporations Amendment (Future of Financial Advice) Bill 2011
Explanatory Memorandum – Corporations Amendment (Future of Financial Advice) Bill 2011 on the Parliament of Australia website

Date of effect Start from 1 July 2012
Contact details Dr Richard Sandlant
Manager
Financial Advice Reform Unit
Retail Investor Division
Phone: (02) 6263 2955
Email: Richard.Sandlant@treasury.gov.au
Title Corporations Amendment (Future of Financial Advice) Bill 2011
Description of issue Amends the Corporations Act 2001 to require financial advisers to outline the fees charged and services provided in the previous 12 months to retail clients paying ongoing fees. This means advisers will be in regular contact with their clients and will need to demonstrate the value of the services they are providing.
Corporations Amendment (Future of Financial Advice) Bill 2011:
Explanatory Memorandum:
Corporations Amendment (Future of Financial Advice) Bill 2011 on the Parliament of Australia website
Date of effect Voluntary start from 1 July 2012
Mandatory from 1 July 2013
Contact details Dr Richard Sandlant
Manager
Financial Advice Reform Unit
Retail Investor Division
Phone: (02) 6263 2955
Email: Richard.Sandlant@treasury.gov.au
Title Competition and Consumer Legislation Amendment Act 2011
Description of issue Creeping acquisitions are generally defined to be a series of small scale acquisitions that individually do not substantially lessen competition in a market in breach of section 50 of the Competition and Consumer Act 2010 (CCA), but collectively may have that effect over time. Concerns about creeping acquisitions were raised in the lead-up to and following the release of the Report of the ACCC Inquiry into the competitiveness of retail prices for standard groceries.
The Competition and Consumer Legislation Amendment Act 2011 was passed by the Australian Parliament on 25 November 2011. The changes to the merger and acquisition laws:

  • clarified that a court or the ACCC can consider the impact of a proposed merger on competition in ‘any’ market (rather than ‘a’ market), ensuring consideration can be given to the competitive impacts of a merger on multiple markets in the one investigation; and
  • clarified that the ACCC or a court can examine local markets where creeping acquisitions concerns may arise in the future, by removing the requirement that a market in which the competition effects of a merger or acquisition are assessed must be a ‘substantial’ market.
    Competition and Consumer Legislation Amendment Bill 2011 on the Parliament of Australia website
Date of effect The changes took effect on 6 February 2012.
Contact details Gillie Kirk
Manager
Competition Policy Unit
Competition and Consumer Policy Division
Phone: (02) 6263 2452
Email: gillie.kirk@treasury.gov.au
Title Competition and Consumer Amendment Act (No. 1) 2011
Description of issue The Competition and Consumer Amendment Act (No. 1) 2011 amended the CCA to include two new price signalling prohibitions:

  • The first prohibition will prohibit outright the private disclosure of pricing information between competitors which are not made in the ordinary course of business.
  • The second will prohibit the disclosure of pricing or other information if the disclosure is made for the purpose of substantially lessening competition (SLC).
  • The price signalling laws only apply to classes of goods and services that are prescribed by regulations
    .

Bill homepage and Explanatory Memoranda:

Act:

Regulations:

Date of effect The changes took effect on 6 June 2012.
Contact details Gillie Kirk
Manager
Competition Policy Unit
Competition and Consumer Policy Division
Phone: (02) 6263 2452
Email: gillie.kirk@treasury.gov.au
Title Outer regional and remote payment
Description of issue Ensures that the outer regional and remote payment made under the Better Start for Children with Disability initiative is not subject to income tax.
explanatory memorandum
Date of effect 1 July 2011
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Extension of FBT exemption for fly-in fly-out arrangements
Description of issue Provides an exemption from fringe benefits tax for transport, from an employee’s usual place of residence to their usual place of employment, where the employee is an Australian resident employed in a remote area overseas, under what is commonly known as a fly-in fly-out arrangement.
explanatory memorandum
Date of effect 1 July 2009
Contact details Chris Leggett
Manager
Philanthropy and Exemption Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3357
Facsimile: (02) 6263 4320
Title Deductible gift recipient changes – New Zealand Government’s Christchurch Earthquake Appeal Trust, Cancer Australia Gift Fund, Worldskills Australia Inc., Bionic Ear Institute.
Description of issue Update the list of deductible gift recipients (DGRs) by adding two entities, (the New Zealand Government’s Christchurch Earthquake Appeal Trust and the Cancer Australia Gift Fund) as DGRs, changing the name of ‘Worldskills Australia Inc.’ to Worldskills Australia, and remove the Bionic Ear Institute from the list. The National Breast and Ovarian Cancer Centre is repealed to reflect its amalgamation with Cancer Australia.
explanatory memorandum
Date of effect 22 March 2011 (earthquake appeal), 9 June 2011 (Cancer Australia), 10 November 2010 (Bionic Ear Institute), 1 August 2011 (National Breast Cancer)
Contact details Chris Leggett
Manager
Philanthropy and Exemption Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3357
Chris.Leggett@treasury.gov.au
Title Excise Tariff Amendment (Condensate) Act 2011 (1)
Excise Legislation Amendment (Condensate) Act 2011
(2)
Description of issue Ensure the Crude Oil Excise regime applies to condensate production from the North West Shelf project as intended following the decision to remove the excise exemption applying to condensate
explanatory memorandum (1)
explanatory memorandum (2)
Date of effect From midnight (legal time in the Australian Capital Territory), on 13 May 2008
Contact details James O’Toole
Manager
Resource Tax Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3112
Email: James.O’Toole@treasury.gov.au
Title Fairer Private Health Insurance Incentives Act 2011 (1)
Fairer Private Health Insurance Incentives (Medicare Levy Surcharge) Act 2011
(2)
Fairer Private Health Insurance Incentives (Medicare Levy Surcharge – Fringe Benefits) Act 2011
(3)
Description of issue Gives effect to the measure, announced in the 2009-10 Budget, to introduce three new ‘Private Health Insurance Incentive Tiers’. These changes will ensure that those with a greater capacity to pay make a larger contribution towards the cost of their private health insurance. It will also ensure that Government support for private health insurance remains fair and sustainable in the future.
explanatory memorandum (1)
explanatory memorandum (2)
explanatory memorandum (3)
Date of effect 1 July 2012
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Clean Energy (Fuel Tax Legislation Amendment) Act 2011 (1)
Clean Energy (Excise Tariff Legislation Amendment) Act 2011
(2)
Clean Energy (Customs Tariff Amendment) Act 2011
(3)
Description of issue Reduce the business fuel tax credit entitlement for liquefied and gaseous fuels in order to provid
e a carbon emission charge; and
Provide a cent-for-cent impact on the use of aviation and non-transport gaseous fuels, equivalent to the carbon emission price of the fuel, had the gaseous fuels been subject to carbon pricing.
explanatory memorandum (1)
explanatory memorandum (2)
explanatory memorandum (3)
Date of effect 1 July 2012
Contact details John Gallagher
Manager
Indirect Tax Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 2865
Facsimile: (02) 6263 3313
Title Clean Energy (Income Tax Rates Amendments) Act 2011 (1)
Clean Energy (Tax Laws Amendments) Act 2011
(2)
Description of issue The Clean Energy (Tax Laws Amendments) Bill 2011 and the Clean Energy (Income Tax Rates Amendments) Bill 2011 have implemented the household assistance measures announced by the Government on 10 July 2011. These Bills amend relevant legislation to provide personal income tax cuts for low- and middle-income individuals.
explanatory memorandum (1)
explanatory memorandum (2)
Date of effect 1 July 2012
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Removing tax issues facing special disability trusts
Description of issue Provides:

  • a capital gains tax (CGT) exemption for an asset transferred into a special disability trust (SDT) for no consideration;
  • a CGT main residence exemption for a trustee of an SDT;
  • a CGT exemption for a recipient of the principal beneficiary’s main residence, if their ownership interest ends within two years of the principal beneficiary’s death; and
  • equivalent taxation treatment amongst SDTs established under different Acts.

explanatory memorandum

Date of effect 1 July 2006
Contact details Paul McMahon
Manager
Capital Gains Tax Unit
Business Tax Division
Telephone: (02) 6263 3385
Email: Paul.McMahon@treasury.gov.au
Title Pacific Seasonal Workers – reduction in marginal tax rate
Description of issue Reduces the lowest marginal tax rate for workers participating in the Pacific Seasonal Worker Pilot Scheme (Scheme) from 29 per cent to 15 per cent. All other tax brackets for participants in the Scheme will remain unchanged. This change only applies to non-residents who hold a Special Program Visa (subclass 416) and who are employed by an ‘Approved Employer’ under the Scheme. Tax rates for other non-residents remain unchanged. This measure is designed to achieve two things, namely, to address equity issues associated with the high effective tax rate that currently applies to participants in the Scheme and to deliver better remittance outcomes for participants in the Scheme.
explanatory memorandum
Date of effect 1 July 2011
Contact details Amanda Zanardo
Manager
International Tax Base Unit
International Tax and Treaties Division
Telephone: (02) 6263 2854
Facsimile: (02) 6263 2724
Title Taxation of financial arrangements and pay as you go instalments
Description of issue Ensures instalment income of a taxpayer who is required to apply Division 230 of the Income Tax Assessment Act 1997 to their financial arrangements also includes their net gains from their Division 230 financial arrangements (to the extent the gains equal or exceed the losses) as worked out under the taxation of financial arrangements provisions.
explanatory memorandum
Date of effect 29 November 2011
Contact details Nan Wang
Manager
Finance Tax Unit
Business Tax Division
Telephone: (02) 6263 2768
Na.Wang@treasury.gov.au
Title Commissioner’s discretion to extend the time for notifying taxation of financial arrangements transitional elections
Description of issue Gives the Commissioner of Taxation a limited discretion to extend the time for a taxpayer to notify the Commissioner of the making of the transitional election to apply Division 230 of the Income Tax Assessment Act 1997 and related consequential and transitional amendments to its existing financial arrangements.
explanatory memorandum
Date of effect 30 November 2011
Contact details Nan Wang
Manager
Finance Tax Unit
Business Tax Division
Telephone: (02) 6263 2768
Na.Wang@treasury.gov.au
Title Farm management deposits
Description of issue Allows a farm management deposit (FMD) owner affected by an applicable natural disaster to access their FMDs within 12 months of making a deposit while retaining concessional tax treatment.
This measure also:

  • requires FMD providers to report certain information about FMDs to the Agriculture Secretary on a monthly basis before the 11th day after the end of a calendar month;
  • allows FMD owners to hold FMDs simultaneously with more than one FMD provider; and
  • allows an FMD to become unclaimed moneys only if the FMD has not been operated on for a period of at least seven years and the authorised deposit-taking institution (which is the FMD provider) is unable to contact the FMD owner after making reasonable efforts.

explanatory memorandum

Date of effect 1 July 2012
Contact details Hector Thompson
Manager
Corporate Tax Unit
Business Tax Division
Telephone: (02) 6263 3998
Facsimile: (02) 6263 4352
Title Exten
d the temporary loss relief for merging superannuation funds by three months
Description of issue Extend the end date of the temporary loss relief for complying superannuation fund mergers by three months – from 30 June 2011 to 30 September 2011. This will provide additional time for mergers to be completed and still meet the eligibility requirements of the loss relief. The requirement that affected mergers are completed in a single income year of the transferring fund is also relaxed to permit funds to benefit from the extension.
explanatory memorandum
Date of effect 29 November 2011
Contact details Paul McMahon
Manager
Capital Gains Tax Unit
Business Tax Division
Telephone: (02) 6263 3385
Email: Paul.McMahon@treasury.gov.au
Title Penalty notice validation
Description of issue Ensures the ongoing validity of certain director penalty notices, notwithstanding the New South Wales Court of Appeal (NSWCA) decision in Soong v Deputy Commissioner of Taxation [2011] NSWCA 26 (Soong).
explanatory memorandum
Date of effect 10 December 2007
Contact details Leslie Macdonald
Manager
Tax Administration Policy Unit
Tax System Division
Telephone: (02) 6263 4317
Facsimile: (02) 6263 4326
Title Public ancillary funds
Description of issue Improves the integrity of public ancillary funds. These amendments among other things:

  • rename the public type of ancillary funds as public ancillary funds (their more commonly used name);
  • give the Treasurer the power to make legislative guidelines about the establishment and maintenance of public ancillary funds; and
  • give the Commissioner of Taxation the power to impose administrative penalties on trustees that fail to comply with the guidelines and to remove or suspend trustees of non-complying funds.

explanatory memorandum

Date of effect 1 January 2012
Contact details Chris Leggett
Manager
Philanthropy and Exemption Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3357
Chris.Leggett@treasury.gov.au
Title Film tax offsets
Description of issue Makes a number of changes to the film tax offsets including.

  • amending the qualifying expenditure threshold for feature films, single episode dramas and documentary programs to $500,000;
  • disallowing eligibility for those documentaries which receive financial assistance under the Producer Equity Program;
  • allowing additional screen production costs to be claimed as qualifying expenditure;
  • allowing television series to benefit for their first 65 broadcast hours;
  • allowing films with qualifying expenditure of less than $15 million to use actual exchange rates rather than existing averaging rules;
  • removing the 20 per cent cap on development expenditure or remuneration provided to the principal director, producers and principal cast associated with the documentary;
  • allowing certain distribution and marketing costs to be included in qualifying expenditure;
  • allowing short-form animated documentaries access to the offset; and
  • excluding goods and services tax (GST) from an amount of expenditure for the purpose of applying the offset.

Changes affecting the location and post, digital and visual effects offsets include:

  • increasing the rate of the location offset from 15 per cent to 16.5 per cent;
  • increasing the post, digital and visual effects offset from 15 per cent to 30 per cent;
  • permitting some additional screen production costs to be claimed as qualifying expenditure; and
  • excluding GST from an amount of expenditure for the purpose of applying these offsets.

explanatory memorandum

Date of effect 1 July 2011
Contact details Hector Thompson
Manager
Corporate Tax Unit
Business Tax Division
Telephone: (02) 6263 3998
Facsimile: (02) 6263 4352
Title Commissioner’s discretion for primary production elections
Description of issue Restore the Commissioner’s discretion to allow a trustee’s election made in respect of the death or forced disposal of livestock to continue where the election would otherwise lapse because of a disentitling event.
explanatory memorandum
Date of effect 1 July 2005
Contact details Kate Preston
Manager
Small Business and Trusts Unit
Business Tax Division
Telephone: (02) 6263 3116
kate.Preston@treasury.gov.au
Title Petroleum Resource Rent Tax: clarifying the taxing point
Description of issue Provide certainty regarding how the ‘taxing point’ is determined for the purposes of the Petroleum Resource Rent Tax (PRRT).
The taxing point is central to the determination of PRRT liabilities, and was recently considered by the Federal Court in Esso Australia Resources Pty Ltd v The Commissioner for Taxation [2011] FCA 360.
These amendments provide statutory reinforcement of the Federal Court’s decision, affirming the long-established application of the PRRT law.
explanatory memorandum
Date of effect 1 July 1990
Contact details James O’Toole
Manager
Resource Tax Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3112
Email: James.O’Toole@treasury.gov.au
Title Consequential amendments for taxation of gaseous fuels
Description of issue Makes minor consequential amendments to the taxation arrangements for gaseous fuels. The changes ensure that the legislation applies as intended and does not impose excessive compliance costs on industry.
explanatory memorandum
Date of effect 1 December 2011
Contact details John Gallagher
Manager
Indirect Tax Unit
Indirect, Phil
anthropy and Resource Tax Division
Telephone: (02) 6263 32865
Facsimile: (02) 6263 3313
Title Minerals Resource Rent Tax
Description of issue A tax on the economic rents miners make from the taxable resources (iron ore, coal and some gases) after they are extracted from the ground but before they undergo any significant processing or value add.
explanatory memorandum
explanatory memorandum
explanatory memorandum
explanatory memorandum
explanatory memorandum
Date of effect 1 July 2012
Contact details James O’Toole
Manager
Resource Tax Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3112
Email: James.O’Toole@treasury.gov.au
Title Petroleum Resource Rent Tax extension
Description of issue The Petroleum Resource Rent Tax Assessment Amendment Bill 2011 (Main Bill) expands its coverage to onshore petroleum projects and the North West Shelf project. From 1 July 2012, the Petroleum Resource Rent Tax (PRRT) will be extended and apply to all oil and gas production in Australia. The PRRT will not apply to the Joint Petroleum Development Area in the Timor Sea. The PRRT is currently imposed by the Petroleum Resource Rent Tax Act 1987. That Act will be repealed as part of this Main Bill and replaced by three separate imposition Bills titled, the Petroleum Resource Rent Tax (Imposition – Customs) Bill 2011, the Petroleum Resource Rent Tax (Imposition – Excise) Bill 2011 and the Petroleum Resource Rent Tax (Imposition – General) Bill 2011
explanatory memorandum
explanatory memorandum
explanatory memorandum
explanatory memorandum
explanatory memorandum
Date of effect 1 July 2012 and 1 July 1986
Contact details James O’Toole
Manager
Resource Tax Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3112
Email: James.O’Toole@treasury.gov.au
Title Changes to the superannuation guarantee
Description of issue Removes the maximum age limit at which the superannuation guarantee (SG) no longer needs to be provided, and gradually increases the SG charge percentage from 9 per cent to 12 per cent.
explanatory memorandum
Date of effect 1 July 2013
Contact details Ruth Gabbitas
Manager
Contributions and Accumulations Unit
Personal and Retirement Income Division
Telephone: (02) 6263 4154
Facsimile: (02) 6263 3044
Title Abolish the entrepreneurs’ tax offset
Description of issue Abolish the entrepreneurs’ tax offset
explanatory memorandum
Date of effect 1 July 2012
Contact details Kate Preston
Manager
Small Business and Trusts Unit
Business Tax Division
Telephone: (02) 6263 3116
kate.Preston@treasury.gov.au
Title Increase to the small business instant asset write-off threshold and simplified depreciation
Description of issue
  • Increase the small business instant asset write-off threshold from $1,000 to $6,500; and
  • Consolidate the long life small business pool and the general small business pool into a single pool to be written off at one rate.

explanatory memorandum

Date of effect 29 March 2012
Contact details Kate Preston
Manager
Small Business and Trusts Unit
Business Tax Division
Telephone: (02) 6263 3116
kate.Preston@treasury.gov.au
Title Small business entities’ deductions for motor vehicles
Description of issue Allow small business entities to claim an accelerated initial deduction for motor vehicles acquired in the 2012-13 and subsequent income years.
explanatory memorandum
Date of effect 29 March 2012
Contact details Kate Preston
Manager
Small Business and Trusts Unit
Business Tax Division
Telephone: (02) 6263 3116
kate.Preston@treasury.gov.au
Title Low income superannuation contribution
Description of issue Provides a new superannuation contribution for low income individuals.
explanatory memorandum
Date of effect 1 July 2012
Contact details Ruth Gabbitas
Manager
Contributions and Accumulations Unit
Personal and Retirement Income Division
Telephone: (02) 6263 4154
Facsimile: (02) 6263 3044
Title Deferred settlement of excise and excise-equivalent customs duties
Description of issue Permit ‘small business entities’ to defer the settlement of excise and excise-equivalent customs duties from a weekly cycle to a monthly cycle. Additionally, these Bills clarify administrative arrangements for periodic settlement permissions.
explanatory memorandum
explanatory memorandum
Date of effect 21 March 2012
Contact details John Gallagher
Manager
Indirect Tax Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 2865
Facsimile: (02) 6263 3313
Title Electronic portability form
Description of issue Enable certain superannuation fund members to electronically request the consolidation of their superannuation benefits through the Australian Taxation Office.
explanatory memorandum
Date of effect 21 March 2012
Contact details Louise Lilley
Manager
Benefits and Regulation Unit
Personal and Retirement Income Division
Telephone: (02) 6263 3327
Facsimile: (02) 6263 3044
Title CGT and business restructures – Part 1: Share or interest sale facilities for foreign interest holders in a restructure
Description of issue Ensures entities in a restructure can use a share or interest sale facility to deal with foreign held interests without Australian tax residents automatically failing a key requirement of certain capital gains tax (CGT) roll-overs.
explanatory memorandum
Date of effect 7.30pm legal time in the ACT on 11 May 2010
Contact details Paul McMahon
Manager
Capital Gains Tax Unit
Business Tax Division
Telephone: (02) 6263 3385
Email: Paul.McMahon@treasury.gov.au
Title CGT and business restructures – Part 2: CGT demerger relief
Description of issue Excludes an entity from being a member of a demerger group if the entity is a corporation sole or a complying superannuation entity.
explanatory memorandum
Date of effect 7.30pm legal time in the ACT on 11 May 2010
Contact details Paul McMahon
Manager
Capital Gains Tax Unit
Business Tax Division
Telephone: (02) 6263 3385
Email: Paul.McMahon@treasury.gov.au
Title CGT and business restructures – Part 3: Roll-overs for change of incorporation
Description of issue Expand the existing capital gains tax (CGT) roll-over for the change of a body to an incorporated company. The expanded roll-over applies to entities that change incorporation to become a Corporations (Aboriginal and Torres Strait Islander) Act 2006 corporation. The expanded roll-over also covers a taxpayer’s rights associated with a body, as well as their ownership interests, and situations where a body is wound up and replaced by a new company incorporated under a different law.
Also allows for tax neutral consequences for CGT, depreciating, revenue and trading stock assets of a body that is wound up and replaced by a new company incorporated under a different law, and these assets are transferred to the new company.
explanatory memorandum
Date of effect 7.30pm legal time in the ACT on 11 May 2010
Contact details Paul McMahon
Manager
Capital Gains Tax Unit
Business Tax Division
Telephone: (02) 6263 3385
Email: Paul.McMahon@treasury.gov.au
Title GST financial supply provisions
Description of issue Amends the goods and services tax financial supply provisions to:

  • increase the first limb of the financial acquisitions threshold from $50,000 to $150,000;
  • exclude financial supplies consisting of a borrowing made through the provision of a deposit account by an Australian authorised deposit-taking institution from the current concession for borrowings; and
  • allow taxpayers who account on a cash basis to treat an acquisition made under a hire purchase agreement as though they do not account on a cash basis.

Explanatory memorandum

Date of effect 1 July 2012
Contact details Rob Dalla Costa
Senior Adviser
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3328
Facsimile: (02) 6263 4320
Title GST treatment of new residential premises
Description of issue Ensures that sales or long-term leases of new residential premises by a registered entity are taxable supplies and that sale or long-term leases of residential premises (other than new residential premises) are input taxed supplies.
explanatory memorandum
Date of effect 27 January 2011
Contact details Michael Harms
Manager
GST Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3308
Michael.Harms@treasury.gov.au
Title Deductible gift recipients – Rhodes Trust in Australia and Playgroup Australia Limited
Description of issue Update the list of deductible gift recipients (DGRs) by adding one entity (Rhode Trust in Australia) as a DGR, and changing the name of another entity (Playgroup Australia Limited) previously listed.
explanatory memorandum
Date of effect 20 October 2011 and 25 October 2010
Contact details Chris Leggett
Manager
Philanthropy and Exemption Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3357
Chris.Leggett@treasury.gov.au
Title Miscellaneous amendments to the tax laws
Description of issue Makes technical corrections and other minor and miscellaneous amendments to the taxation laws. These amendments are part of the Government’s commitment to the care and maintenance of the tax system.
explanatory memorandum
Date of effect Largely 21 March 2012
Contact details Leslie Macdonald
Manager
Tax Administration Policy Unit
Tax System Division
Telephone: (02) 6263 4317
Facsimile: (02) 6263 4326
Title Assessment of amounts under indirect tax laws
Description of issue Harmonise the current self-actuating system that applies to the goods and services tax, the luxury car tax, the wine equalisation tax and fuel tax credits with the self-assessment system for income tax.
explanatory memorandum
Date of effect 1 July 2012
Contact details Michael Harms
Manager
GST Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3308
Michael.Harms@treasury.gov.au
Title Correcting errors in working out amounts under indirect tax laws
Description of issue Legislate the Commissioner of Taxation’s power to make a determination allowing a taxpayer to take into account, on his or her goods and services tax or fuel tax return for the current tax period or fuel tax return period, errors made in working out net amounts and net fuel amounts for preceding tax periods or fuel tax return periods.
explanatory memorandum
Date of effect 1 July 2012
Contact details Michael Harms
Manager
GST Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3308
Michael.Harms@treasury.gov.au
Title Net amounts
Description of issue Confirm that the luxury car tax and the wine equalisation tax are part of the ‘net amount’ that is calculated under the GST Act . Also make amendments to create a single ‘net amount’ definition that applies differently to reflect differing circumstances.
explanatory memorandum
Date of effect 1 July 2012
Contact details Michael Harms
Manager
GST Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3308
Michael.Harms@treasury.gov.au
Title Minor amendments
Description of issue Make technical corrections and other minor amendments to the taxation laws. These amendments are part of the Government’s commitment to the care and maintenance of the tax system.
explanatory memorandum
Date of effect 15 April 2012
Contact details Michael Harms
Manager
GST Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3308
Michael.Harms@treasury.gov.au
Title GST-free health supplies
Description of issue Ensures that a supply made by a health care provider to an insurer, a statutory compensation scheme operator, a compulsory third party scheme operator or a government entity, is treated as a GST-free supply to the extent that the underlying supply from the health care provider to an individual is a GST-free health supply.
explanatory memorandum
Date of effect 1 July 2012
Contact details Michael Harms
Manager
GST Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3308
Michael.Harms@treasury.gov.au
Title GST treatment of appropriations
Description of issue Restore the policy intent that the non-commercial activities of government related entities are not subject to goods and services tax.
explanatory memorandum
Date of effect 1 July 2012
Contact details Michael Harms
Manager
GST Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3308
Michael.Harms@treasury.gov.au
Title Indexation of superannuation concessional contributions cap
Description of issue Temporarily pause the indexation of the superannuation concessional contributions cap so that it will remain fixed at $25,000 up to and including the 2013-14 financial year.
explanatory memorandum
Date of effect 1 July 2013
Contact details Ruth Gabbitas
Manager
Contributions and Accumulation Unit
Personal & Retirement Income Division
Telephone: (02) 6263 4154
Facsimile: (02) 6263 3044
Title Superannuation – refund of excess concessional contributions
Description of issue Allow eligible individuals the option to effectively have excess concessional contributions of $10,000 or less refunded to them. However, if the refund is accepted, the excess concessional contributions will be assessed as income for the year of the excess contributions rather than paying excess contributions tax.
explanatory memorandum
Date of effect 1 July 2011
Contact details Ruth Gabbitas
Manager
Contributions and Accumulation Unit
Personal & Retirement Income Division
Telephone: (02) 6263 4154
Facsimile: (02) 6263 3044
Title Disclosure of superannuation information
Description of issue Permit the Australian Taxation Office (ATO) to disclose details of an individual’s superannuation interests and superannuation benefits to a regulated superannuation fund or public sector superannuation scheme, an approved deposit fund, retirement savings account (RSA) provider or their administrators (the bodies).
This will enable the ATO to provide information to the bodies particularly through enhanced services that will allow the bodies to access information about a member’s superannuation interests, including amounts held by the ATO. This information will enable funds to assist their members to find and consolidate their superannuation interests.
explanatory memorandum
Date of effect 27 June 2012
Contact details Ruth Gabbitas
Manager
Contributions and Accumulation Unit
Personal & Retirement Income Division
Telephone: (02) 6263 4154
Facsimile: (02) 6263 3044
Title Superannuation – payslip reporting
Description of issue Require employers to report, on payslips, any information prescribed in the regulations about superannuation contributions.
The regulations will in turn require employers to report the amount of superannuation contributions, as well as the date on which the employer expects to pay them.
The regulations will also incorporate the existing requirements in Regulation 3.46 in the Fair Work Regulations 2009 to include the name, or name and number, of any fund to which the contribution is to (or was) paid.
explanatory memorandum
Date of effect Proclamation or 27 June 2013 if not proclaimed.
Contact details Ruth Gabbitas
Manager
Contributions and Accumulation Unit
Personal & Retirement Income Division
Telephone: (02) 6263 4154
Facsimile: (02) 6263 3044
Title Commissioner’s discretion to retain refunds
Description of issue Provide the Commissioner of Taxation with a legislative discretion to delay paying high risk refunds pending refund integrity checks of a taxpayer’s claim.
explanatory memorandum
Date of effect 27 June 2012
Contact details Michael Harms
Manager
GST Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3308
Michael.Harms@treasury.gov.au
Title Disallow deductions against rebatable benefits
Description of issue Disallows deductions against government assistance payments from 1 July 2011.
explanatory memorandum
Date of effect 1 July 2011
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Limiting the trading stock exception for superannuation funds
Description of issue Remove access to the trading stock exception to the capital gains tax primary code rule for certain assets (primarily shares, units in a trust and land) owned by a complying superannuation entity.
explanatory memorandum
Date of effect 7.30 pm legal time in the ACT on 10 May 2011
Contact details Paul McMahon
Manager
Capital Gains Tax Unit
Business Tax Division
Telephone: (02) 6263 3385
Email: Paul.McMahon@treasury.gov.au
Title Tax exemption for ex-gratia payments to New Zealand non-protected special category visa holders
Description of issue Exempt from income tax ex-gratia payments to New Zealand non-protected special category visa holders for the floods that occurred in New South Wales and Queensland in early 2012.
explanatory memorandum
Date of effect 6 February 2012
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Phasing out the dependent spouse tax offset
Description of issue Phase out the dependent spouse tax offset for taxpayers who maintain a dependent spouse born on or after 1 July 1952.
Also provides that a taxpayer eligible for an amount of offset in respect of an invalid or carer spouse is not also entitled to the equivalent amount of dependent spouse tax offset as a component of their zone, overseas forces or overseas civilian tax offset.
explanatory memorandum
Date of effect 1 July 2012
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Miscellaneous amendments to the taxation laws
Description of issue Makes miscellaneous amendments to the taxation laws as part of the Government’s commitment to uphold the integrity of the taxation system.
explanatory memorandum
Date of effect Mostly 1 July 2012 or 27 June 2012
Contact details Leslie Macdonald
Manager
Tax Administration Policy Unit
Tax System Division
Telephone: (02) 6263 4317
Facsimile: (02) 6263 4326
Title Stronger Shipping for a Stronger Economy – Income Tax Exemption
Description of issue Creates a new category of exempt income for ship operators under certain circumstances. The income tax exemption will apply to all qualifying shipping income for eligible shipping ‘vessels’.
A modified loss wastage rule will replace the existing treatment of the application of losses against net exempt income.
Enable the Australian Taxation Office (ATO) to give tax information to the Department of Infrastructure and Transport for the purpose of administering the legislation.
explanatory memorandum
Date of effect 1 July 2012
Contact details Hector Thompson
Manager
Corporate Tax Unit
Business Tax Division
Telephone: (02) 6263 3998
Facsimile: (02) 6263 4352
Title Stronger Shipping for a Stronger Economy – Statutory capped life
Description of issue Insert a capped life of 10 years for the decline in value of a shipping vessel, where a certificate has been obtained under the legislation in relation to the vessel. This capped life will be the effective life of the shipping vessel where certain conditions are met.
explanatory memorandum
Date of effect 1 July 2012
Contact details Hector Thompson
Manager
Corporate Tax Unit
Business Tax Division
Telephone: (02) 6263 3998
Facsimile: (02) 6263 4352
Title Stronger Shipping for a Stronger Economy – Balancing adjustment and roll-over relief
Description of issue Provide roll-over relief for holders of shipping vessels covered by a certificate issued in accordance with the legislation. The balancing adjustment incurred can be rolled over, if circumstances giving rise to it are satisfied.
explanatory memorandum
Date of effect 1 July 2012
Contact details Hector Thompson
Manager
Corporate Tax Unit
Business Tax Division
Telephone: (02) 6263 3998
Facsimile: (02) 6263 4352
Title Stronger Shipping for a Stronger Economy – Seafarer tax offset
Description of issue Entitle a company to a refundable tax offset (a seafarer tax offset) for salary, wages and allowances paid to Australian resident seafarers who are employed to undertake overseas voyages on certified vessels, if the company employs the seafarer on such voyages for at least 91 days in the income year.
explanatory memorandum
Date of effect 1 July 2012
Contact details Hector Thompson
Manager
Corporate Tax Unit
Business Tax Division
Telephone: (02) 6263 3998
Facsimile: (02) 6263 4352
Title Stronger Shipping for a Stronger Economy – Royalty withholding tax
Description of issue Entitle a company to a refundable tax offset (a seafarer tax offset) for salary, wages and allowances paid to Australian resident seafarers who are employed to undertake overseas voyages on certified vessels, if the company employs the seafarer on such voyages for at least 91 days in the income year.
explanatory memorandum
Date of effect 1 July 2012
Contact details Greg Wood
Manager
International Tax Treaties Unit
International, Tax and Treaties Division
Telephone: (02) 6263 3329
Facsimile: (02) 6263 2724
Title Medicare levy and Medicare levy surcharge low-income thresholds
Description of issue Increase the Medicare levy low-income thresholds for individuals and families and the Medicare levy surcharge low-income threshold in line with movements in the Consumer Price Index.
Increase the Medicare levy low-income threshold for pensioners below Age Pension age to ensure that they do not have a Medicare levy liability when they do not have an income tax liability.
explanatory memorandum
Date of effect 1 July 2011
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Data and payment standards relating to superannuation and retirement savings
Description of issue Introduce a framework to support the implementation of superannuation data and payment regulations and standards that will apply to specified superannuation transactions undertaken by superannuation entities/retirement savings account providers (RSA providers) and employers.
explanatory memorandum
Date of effect 1 July 2013 and 1 July 2014
Contact details Chris Denney
Senior Adviser
Benefits and Regulation Unit
Personal and Retirement Income Division
Telephone: (02) 6263 2037
Facsimile: (02) 6263 3044
Title Costs of implementing SuperStream measures
Description of issue Enable costs associated with the implementation of the SuperStream measures to be included in the determination specifying the amount of the levy that is payable to the Commonwealth.
explanatory memorandum
Date of effect 1 July 2012
Contact details Chris Denney
Senior Adviser
Benefits and Regulation Unit
Personal and Retirement Income Division
Telephone: (02) 6263 2037
Facsimile: (02) 6263 3044
Title Amendment to the Superannuation Supervisory Levy Imposition Act 1998
Description of issue Enable the Treasurer to make more than one determination for a financial year to collect costs associated with SuperStream on funds regulated by APRA.
explanatory memorandum
Date of effect 1 July 2012
Contact details Chris Denney
Senior Adviser
Benefits and Regulation Unit
Personal and Retirement Income Division
Telephone: (02) 6263 2037
Facsimile: (02) 6263 3044
Title Companies’ non-compliance with PAYG withholding and superannuation guarantee obligations
Description of issue Strengthens directors’ obligations to cause their company to comply with its existing Pay As You Go (PAYG) withholding and superannuation guarantee requirements. These amendments reduce the scope for companies to engage in fraudulent phoenix activity or escape liabilities and payments of employee entitlements by:

  • extending the director penalty regime to make directors personally liable for their company’s unpaid superannuation guarantee amounts;
  • ensuring that directors cannot discharge their director penalties by placing their company into administration or liquidation when PAYG withholding or superannuation guarantee remains unpaid and unreported three months after the due date; and
  • in some instances, making directors and their associates liable to PAYG withholding non-compliance tax where the company has failed to pay amounts withheld to the Commissioner of Taxation (Commissioner).

explanatory memorandum
explanatory memorandum

Date of effect 29 June 2012
Contact details Kate Preston
Manager
Small Business and Trusts Unit
Business Tax Division
Telephone: (02) 6263 3116
kate.Preston@treasury.gov.au
Title Consolidation: Rights to future income
Description of issue Modify the consolidation tax cost setting and rights to future income rules so that the tax outcomes for consolidated groups are more consistent with the tax outcomes that arise when assets are acquired outside the consolidation regime.
explanatory memorandum
Date of effect 12 May 2010 and 30 March 2011
Contact details Tony Regan
Principal Adviser
Business Tax Division
Telephone: (02) 6263 3334
Facsimile: (02) 6263 4352
Title Managed Investment Trust final withholding tax rate
Description of issue Increase the Managed Investment Trust (MIT) final withholding tax from 7.5 per cent to 15 per cent on fund payments made in relation to income years that commence on or after 1 July 2012.
explanatory memorandum
explanatory memorandum
Date of effect 1 July 2012
Contact details Amanda Zanardo
Manager
International Tax Base Unit
International Tax and Treaties Division
Telephone: (02) 6263 2854
Facsimile: (02) 6263 2724
Title Seasonal Labour Mobility Program – final withholding tax
Description of issue Creates a new final withholding tax regime that applies to income derived by non-resident workers participating in the Seasonal Labour Mobility Program (Program) by:

  • creating the obligations to withhold amounts;
  • establishing the liability to pay tax on income derived under the Program; and
  • making consequential amendments.

The formal imposition of income tax, and the establishment of the applicable rate of tax, is provided for by means of the Income Tax (Seasonal Labour Mobility Program Withholding Tax) Bill 2012.
This measure reduces the compliance costs for seasonal workers participating in the Program by removing the requirement to lodge a tax return and simplifying administration for employers and the Australian Taxation Office (ATO).
explanatory memorandum
explanatory memorandum

Date of effect 1 July 2012
Contact details Amanda Zanardo
Manager
International Tax Base Unit
International Tax and Treaties Division
Telephone: (02) 6263 2854
Facsimile: (02) 6263 2724
Title Taxation of blends of gaseous and aviation fuels – further consequential amendments
Description of issue Blends the same types of gaseous fuels or the same types of aviation fuels, where each amount of the gaseous fuel or each amount of the aviation fuel has been taxed at a different rate as a result of time-related excise phase-in arrangements or time-related carbon price changes, are not treated as excise manufacture and therefore subject to additional duty.
explanatory memorandum
Date of effect 1 July 2012
Contact details John Gallagher
Manager
Indirect Tax Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 2865
Facsimile: (02) 6263 3313
Title Low-income tax offset
Description of issue Ensure that where a trustee is assessed on the income of a minor, the trustee will not have access to the low income tax offset in circumstances where the income is considered to be unearned income of that minor.
explanatory memorandum
Date of effect 1 July 2011
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Clean energy payments
Description of issue Exempt clean energy payments made to recipients of payments under the ABSTUDY scheme, Veterans’ Children Education Scheme, Military Rehabilitation and Compensation Act Education and Training Scheme, the transitional family farm payment and exceptional circumstances relief payment.
explanatory memorandum
Date of effect 1 July 2011
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Better targeting of the employment termination payment tax offset
Description of issue Ensure access to the employment termination payment (ETP) tax offset and the amount of offset received takes into account an individual’s taxable ETP as well as any other taxable income in the year they receive the ETP. From 1 July 2012, any taxable component of an ETP that takes a person’s total taxable income in a year above $180,000 will be taxed at marginal rates.
explanatory memorandum
Date of effect 1 July 2012
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Aligning the non-resident tax rates
Description of issue Align more closely the personal income tax rates for non-residents for Australian tax purposes with the personal income tax rates for Australian resident taxpayers, by:

  • merging the first two personal marginal tax rate thresholds for non-residents into a single threshold; and
  • aligning the rate for this new threshold to the second marginal tax rate for residents (32.5 per cent from 1 July 2012, increasing to 33 per cent from 1 July 2015).

explanatory memorandum
explanatory memorandum

Date of effect 1 July 2012
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Taxation Administration Amendment Regulations 2011 (No. 4)
Description of issue Updates the list of countries with whom Australia has effective exchange of information for tax purposes to include Anguilla, Aruba, Belgium, Malaysia, and Turks and Caicos Islands.
explanatory statement
Date of effect 1 January 2012
Contact details Greg Wood
Manager
International Tax Treaties Unit
International, Tax and Treaties Division
Telephone: (02) 6263 3329
Facsimile: (02) 6263 2724
Title Taxation Administration Amendment Regulations 2011 (No. 3)
Description of issue Updates the list of countries with whom Australia has effective exchange of information for tax purposes with to include Belize, Cayman Islands, the Commonwealth of the Bahamas, Principality of Monaco, the Republic of San Marino, the Republic of Singapore, Saint Kitts and Nevis, and Saint Vincent and the Grenadines.
explanatory statement
Date of effect 1 July 2011
Contact details Greg Wood
Manager
International Tax Treaties Unit
International, Tax and Treaties Division
Telephone: (02) 6263 3329
Facsimile: (02) 6263 2724
Title Taxation Administration Amendment Regulation 2012 (No. 4)
Description of issue Adds the Cook Islands, Macau, Mauritius and the Republic of Korea to the list of foreign countries and foreign territories that are ‘information exchange countries’. This list is relevant for calculating the amount to be withheld by the trustee of a managed investment trust or custodian, or by another entity, from a fund payment to a foreign resident.
explanatory statement
Date of effect 1 July 2012
Contact details Greg Wood
Manager
International Tax Treaties Unit
International, Tax and Treaties Division
Telephone: (02) 6263 3329
Facsimile: (02) 6263 2724
Title Taxation Administration Amendment Regulation 2012 (No. 3)
Description of issue Sets the rate of withholding tax that applies to income derived by Seasonal Workers from participating in the Seasonal Labour Mobility Program at the flat rate of 15 per cent.
explanatory statement
Date of effect 21 June 2012
Contact details Amanda Zanardo
Manager
International Tax Base Unit
International Tax and Treaties Division
Telephone: (02) 6263 2854
Facsimile: (02) 6263 2724
Title Taxation Administration Amendment Regulation 2012 (No. 2)1
Description of issue Changes the amount of low income tax offset (LITO) that the Commissioner of Taxation can take into account in determining schedules at which income tax is withheld and to take account of the merger of the senior Australians tax offset (SATO) and the pensioner tax offset (PTO) into the new seniors and pensioners tax offset (SAPTO).
Explanatory statement
Date of effect 2 July 2012
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Taxation Administration Amendment Regulation 2012 (No. 1)
Description of issue Prescribes the information that is required of businesses in the building and construction industry to report to the Commissioner the details of payments they make to contractors for the supply of building and construction services
Explanatory statement
Date of effect 1 July 2012
Contact details Kate Preston
Manager
Small Business and Trusts Unit
Business Tax Division
Telephone: (02) 6263 3116
kate.Preston@treasury.gov.au
Title Superannuation Industry (Supervision) Amendment Regulations 2011 (No. 4) –
Description of issue Include rules with which trustees of superannuation entities must comply with when using a member’s TFN to locate accounts, and where they use TFNs in order to facilitate account consolidation.
Explanatory statement
Date of effect 1 January 2012
Contact details Ruth Gabbitas
Manager
Contributions and Accumulations Unit
Personal and Retirement Income Division
Telephone: (02) 6263 4154
Facsimile: (02) 6263 3044
Title Superannuation Industry (Supervision) Amendment Regulations 2011 (No. 3)
Description of issue Allow superannuation trustees to recognise forfeiture orders issued under Commonwealth, State and Territory legislation, updates the list of exempt public sector superannuation schemes and inserts a note relating to investment strategies
Explanatory statement
Date of effect 6 August 2011
Contact details Michael Wellham
Senior Adviser
Benefits and Regulation Unit
Personal and Retirement Income Division
Telephone: (02) 6263 3043
Facsimile: (02) 6263 3044
Title Superannuation Industry (Supervision) Amendment Regulations 2011 (No. 2)
Description of issue Include rules with which SMSF trustees
must comply when investing in collectables and personal use assets
Explanatory statement
Date of effect 1 July 2011
Contact details Louise Lilley
Manager
Benefits and Regulation Unit
Personal and Retirement Income Division
Telephone: (02) 6263 3327
Facsimile: (02) 6263 3044
Title Superannuation Industry (Supervision) Amendment Regulation 2012 (No. 1)
Description of issue Gives effect to the Government’s announced measure to reduce the minimum payment amounts for account-based pensions by 25 per cent for 2012-13
Explanatory statement
Date of effect 1 July 2012
Contact details Louise Lilley
Manager
Benefits and Regulation Unit
Personal and Retirement Income Division
Telephone: (02) 6263 3327
Facsimile: (02) 6263 3044
Title Retirement Savings Accounts Amendment Regulations 2011 (No. 3)
Description of issue Provides for the Chief Executive Medicare to act as the regulator for the purpose of the early release of retirement savings accounts benefits on compassionate grounds
Explanatory statement
Date of effect 1 November 2011
Contact details Louise Lilley
Manager
Benefits and Regulation Unit
Personal and Retirement Income Division
Telephone: (02) 6263 3327
Facsimile: (02) 6263 3044
Title Retirement Savings Accounts Amendment Regulations 2011 (No. 2)
Description of issue Allow retirement savings accounts providers to recognise forfeiture orders issued under Commonwealth, State and Territory legislation.
Explanatory statement
Date of effect 6 August 2011
Contact details Michael Wellham
Senior Adviser
Benefits and Regulation Unit
Personal and Retirement Income Division
Telephone: (02) 6263 3043
Facsimile: (02) 6263 3044
Title Retirement Savings Accounts Amendment Regulation 2012 (No. 1)
Description of issue Gives effect to the Government’s announced measure to reduce the minimum payment amounts for account-based pensions by 25 per cent for 2012-13.
Explanatory statement
Date of effect 1 July 2012
Contact details Louise Lilley
Manager
Benefits and Regulation Unit
Personal and Retirement Income Division
Telephone: (02) 6263 3327
Facsimile: (02) 6263 3044
Title Income Tax Assessment Amendment Regulations 2011 (No. 5)
Description of issue These Regulations amend the Income Tax Assessment Regulations 1997 to specify the deductible proportion of premiums for certain total and permanent disability insurance policies.
Explanatory statement
Date of effect 6 October 2011
Contact details Louise Lilley
Manager
Benefits and Regulation Unit
Personal and Retirement Income Division
Telephone: (02) 6263 3327
Facsimile: (02) 6263 3044
Title Income Tax Assessment Amendment Regulation 2012 (No. 1)
Description of issue This regulation amends the Income Tax Assessment Regulations 1997 to insert the cents per kilometre rates for 2011-12 income year for calculating income tax deductions for car expenses.
Explanatory statement
Date of effect 1 July 2011
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Income Tax Amendment Regulation 2012 (No. 2)
Description of issue Updates the existing end dates to ensure that the base pay and allowances for deployed defence personnel remains exempt for the period of the extension.
Explanatory statement
Date of effect 31 March 2011
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Income Tax Amendment Regulation 2012 (No. 1)
Description of issue This regulation amends the application of a number of structural offsets to ensure that nobody pays more tax as a result of the changes to the statutory rates and thresholds in the Clean Energy legislation. The amendments include: changes to the administration of the senior Australians tax offset (SATO) to reflect the merger of the pensioner tax offset (PTO) and SATO into the new seniors and pensioners tax offset (SAPTO); a revision to the formula that determines the amount of beneficiary tax offset (BTO) a taxpayer may receive; and a revision to the formula that determines the amount of SAPTO that can be transferred between one eligible member of a couple and another
Explanatory statement
Date of effect 1 July 2012
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Income Tax (Farm Management Deposits) Amendment Regulations 2011 (No. 1)
Description of issue These Regulations amend the Income Tax (Farm Management D
eposits) Regulations 1998 to allow for early access to the FMD for primary producers affected by natural disasters, and also allows for more than one FMD to be held by the primary producer with Australian Deposit Institutions
Explanatory statement
Date of effect 1 July 2010
Contact details Hector Thompson
Manager
Corporate Tax Unit
Business Tax Division
Telephone: (02) 6263 3998
Facsimile: (02) 6263 4352
Title Excise Amendment Regulations 2011 (No. 1)
Description of issue These Regulations amend the Excise Regulations 1925 to provide an automatic remission of excise duty imposed on liquefied petroleum gas (LPG), and liquefied natural gas (LNG) where those fuels are for use other than in an internal combustion engine in a motor vehicle or vessel
Explanatory statement
Date of effect 1 December 2011
Contact details John Gallagher
Manager
Indirect Tax Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 2865
Facsimile: (02) 6263 3313
Title Excise Amendment Regulation 2012 (No. 1)
Description of issue This regulation amends the Excise Regulations 1925 to prescribe stabilised crude petroleum oil and condensate as classes of goods eligible to apply for monthly permissions
Explanatory statement
Date of effect 1 July 2012
Contact details John Gallagher
Manager
Indirect Tax Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 2865
Facsimile: (02) 6263 3313
Title A New Tax System (Goods and Services Tax) Amendment Regulations 2011 (No. 2)
Description of issue These Regulations specify certain fees and charges that would otherwise be exempt from GST under subsection 81-10(1) of the A New Tax System (Goods and Services Tax) Act 1999 to treat the payment of the specified fees and charges as consideration for a taxable supply relating to things such as motorway tolls and tip fees
Explanatory statement
Date of effect 1 July 2011
Contact details Michael Harms
Manager
GST Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3308
Michael.Harms@treasury.gov.au
Title A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No. 3)
Description of issue This regulation amends item 6 of the table in Schedule 11 to the A New Tax System (Goods and Services Tax) Regulations 1999 (the Principal Regulations) to update the reference to the legislation containing the Australian Capital Territory’s (ACT’s) compulsory third party (CTP) insurance scheme. This scheme is now contained in the Road Transport (Third-Party Insurance) Act 2008 (ACT) and not in the Road Transport (General) Act 1999 (ACT)
Explanatory statement
Date of effect 3 July 2012
Contact details Michael Harms
Manager
GST Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3308
Michael.Harms@treasury.gov.au
Title A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No. 1)
Description of issue This regulation amends the A New Tax System (Goods and Services Tax) Regulations 1999 to treat all components of a hire purchase transaction as taxable supplies, extend the availability of reduced input tax credits relating to life insurance, lenders mortgage reinsurance and transactional fraud monitoring services, modify access to a reduced input tax credit for recognised trust entities, and clarify the language used in relation to guarantees and indemnities
Explanatory statement
Date of effect 1 July 2012
Contact details Michael Harms
Manager
GST Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3308
Michael.Harms@treasury.gov.au
Title A New Tax System (Goods and Services Tax) Amendment Regulation 2012 (No. 2)
Description of issue This regulation amends the A New Tax System (Goods and Services Tax) Regulations 1999 to clarify the GST treatment of Australian fees and charges and provide additional certainty to Australian government agencies by extending the operation of A New Tax System (Goods and Services Tax) (Exempt taxes, fees and charges) Determination 2011 (No. 1) until 1 July 2013.
Explanatory statement
Date of effect 1 July 2012
Contact details Michael Harms
Manager
GST Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3308
Michael.Harms@treasury.gov.au
Title Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions Amendment Determination 2012 (No. 1)
Description of issue This determination amends the Income Tax – Temporary Flood and Cyclone Reconstruction Levy Exemptions 2011 to outline the classes of individuals who will be exempt from paying the temporary flood and cyclone reconstruction levy.
Explanatory statement
Date of effect 1 July 2010
Contact details André Moore
Manager
Individuals Tax Unit
Personal and Retirement Unit
Telephone: (02) 6263 3067
Facsimile: (02) 6263 3044
Title Reform of the living-away-from-home allowance and benefit rules
Description of issue Reforms the taxation treatment of living-away-from-home (LAFH) allowances and benefits to:

  • generally treat LAFH allowances as part of
    an employee’s assessable income rather than as fringe benefits;
  • better target the concessional treatment by allowing an income tax deduction:
    • for reasonable expenses incurred and substantiated for accommodation and food and drink (beyond ‘ordinary weekly food and drink expenses’);
    • to employees who maintain a home in Australia for their own personal and immediate use and enjoyment at all times while required to live away from home for their work; and
    • for a maximum period of 12 months in respect of an individual employee for a particular work location; and
  • tax employers on:
    • LAFH allowances to the extent they relate to ‘ordinary weekly food and drink expenses’ of employees who satisfy the requirements to claim an income tax deduction and have provided their employer with a declaration; and
    • LAFH benefits (that is, the provision of accommodation, food and expense payments) provided to employees who would not be eligible to claim an income tax deduction had they incurred the expenses directly.

explanatory memorandum

Date of effect Has been introduced into the House of Representatives on 28 June 2012 with a 1 October 2012 start date
Contact details Chris Leggett
Manager
Philanthropy and Exemption Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3357
Chris.Leggett@treasury.gov.au
Title GST supplies by representatives who are creditors
Description of issue Ensure that in circumstances where a representative of an incapacitated entity is a creditor of that entity, the correct provision of the GST Act is applied.
explanatory memorandum
Date of effect Has been introduced into the House of Representatives on 28 June 2012 with a Royal Assent start date.
Contact details Michael Harms
Manager
GST Unit
Indirect, Philanthropy and Resource Tax Division
Telephone: (02) 6263 3308
Michael.Harms@treasury.gov.au
Title Consolidation
Description of issue Ensures that:

  • no interest is payable if an overpayment of income tax arises because of a deduction under the pre-rules in Part 1 of Schedule 3 to Tax Laws Amendment (2012 Measures No. 2) Act 2012 (which apply, broadly, to corporate acquisitions in the period before 12 May 2010); and
  • no shortfall interest or administrative penalty is payable if additional tax becomes payable because an amendment to an assessment is made, to the extent that the amendment is attributable to a deduction under the pre-rules in Part 1 of Schedule 3 to that Act or under the interim rules in Part 2 of Schedule 3 to that Act (which apply, broadly, to corporate acquisitions in the period between 12 May 2010 and 30 March 2011).

Bill and explanatory memorandum

Date of effect 29 June 2012
Contact details Tony Regan
Principal Adviser
Business Tax Division
Telephone: (02) 6263 3334
Facsimile: (02) 6263 4352
Title Treaty-equivalent cross-border transfer pricing rules
Description of issue Confirms that the internationally consistent transfer pricing rules contained in Australia’s tax treaties and incorporated into Australia’s domestic law provide assessment authority to address treaty related transfer pricing. The purpose of these rules is to limit taxable profits being shifted or misallocated offshore.
The amendments also provide direct access to Organisation for Economic Cooperation and Development guidance material and clarify how this will interact with thin capitalisation provisions.
explanatory memorandum
Date of effect Has been introduced into the Senate on 20 June 2012 with a 1 July 2004 start date.
Contact details Lisa Clifton
Manager
International Tax Integrity Unit
International and Tax Treaties Unit
Telephone: (02) 6263 4451
Title Investment manager regime
Description of issue Prescribe the treatment of returns, gains, losses and deductions, on certain investments of widely held foreign funds. The amendments will apply where the returns or gains would otherwise be assessable income of the fund only because they are attributable to a permanent establishment in Australia which arises solely from the use of an Australian based agent, manager or service provider. This measure is often referred to as the ‘conduit income’ measure or ‘Element 2’ of the investment manager regime (IMR).
Prescribe the taxation treatment of certain returns, gains, losses and deductions for the 2010-11 and earlier income years of widely held foreign funds which have not lodged a tax return and have not had an assessment made of their income tax liability. This measure is often referred to as the ‘FIN 48’ measure or ‘Element 1’ of the IMR.
explanatory memorandum
Date of effect Has been introduced into the House of Representatives on 21 June 2012 with a 1 July 2010 start date.
Contact details Amanda Zanardo
Manager
International Tax Base Unit
International Tax and Treaties Division
Telephone: (02) 6263 2854
Facsimile: (02) 6263 2724
Title TOFA Consolidation interaction and Transitional Provisions
Description of issue The amendments to the TOFA consolidation interaction provisions ensure that the tax treatment of financial arrangements that are part of a joining/consolidation event is consistent with the TOFA tax timing rules and that the tax treatment of liabilities that are, or are part of, a financial arrangement takes into account changes in the value of the liability other than the repayment of the liability.
The amendments to the TOFA transitional provisions ensure that the TOFA consolidation interaction provisions apply where:

  • a joining/consolidation event occurred prior to a consolidated group starting to apply the TOFA provisions in relation to its financial arrangements; and
  • the head company has made an election to apply the TOFA provisions to its existing financial arrangements.

explanatory memorandum

Date of effect 26 March 2009
Contact details Nan Wang
Manager
Finance Tax Unit
Business Tax Division
Telephone: (02) 6263 2768
Na.Wang@treasury.gov.au
Title Extending the exemption from the Tax Agent Services Act 2009 (TASA) for financial advisors providing tax advice
Description of issue Extend the exemption for financial advisors providing tax advice.
The provision of taxation services and advice is regulated through the TASA, which commenced on 1 March 2010. Financial planners who provided such advice or services were granted an exemption from the TASA until 30 June 2013.
Date of effect 1 July 2012 to 30 June 2013
Contact details Leslie Macdonald
Manager
Tax Administration Policy Unit
Tax System Division
Telephone: (02) 6263 4317
Facsimile: (02) 6263 4326