Greenwoods and Freehills Weekly Tax Highlights - Week Ended 26.9.08
ATO Documents
Released 26.9.08
Draft Taxation Determination
TD 2008/D13: Income tax: when is 'foreign income tax ... imposed ... on the partners, not the partnership' under paragraph 830-10(1)(b) of the Income Tax Assessment Act 1997 for the purpose of determining whether a foreign limited partnership is a foreign hybrid limited partnership under Division 830 of that Act?
Released 26.9.08
Interpretative Decision
ATO ID 2008/122: Consolidations: a company interposed between the shareholders and the head companies of two separate consolidated groups
ATO ID 2008/123: GST: interaction of the financial acquisitions threshold and Division 72
ATO ID 2008/124: GST and cremated remains
ATO ID 2008/125: Application of section 121 of the Income Tax Assessment Act 1936 to a company formed for purpose of providing a financial assurance to a government authority
ATO ID 2008/126: Employee share options: assessability of an unrealised gain by an Australian resident taxpayer from share options granted to the taxpayer when they were working in the UK
Tax Laws Amendment (2008 Measures No 5) Bill 2008
Introduced 25.9.08
Tax Laws Amendment (2008 Measures No 5) Bill 2008 and the accompanying Explanatory Memorandum have been introduced into the House of Representatives. The Bill contains measures dealing with:
- GST margin scheme.
- thin capitalisation in relation to the use of accounting standards.
- the eligibility of exemption from interest withholding tax.
- the term 'otherwise deductible' in the fringe benefits tax law.
- Division 6C as it relates to managed investment trusts.
Tax Laws Amendment (Education Refund) Bill 2008
Introduced 25.9.08
Tax Laws Amendment (Education Refund) Bill 2008 and the accompanying Explanatory Memorandum have been introduced into the House of Representatives. The Bill introduces a 50% refundable tax offset for eligible education expenses (the Education Tax Refund) up to a maximum of $750 for children undertaking primary studies and $1,500 for children undertaking secondary studies.
Temporary Residents' Superannuation Bills 2008
Introduced 25.9.08
Temporary Residents' Superannuation Legislation Amendment Bill 2008, Superannuation (Departing Australia Superannuation Payments Tax) Amendment Bill 2008 and the accompanying Explanatory Memorandum have been introduced into the House of Representatives. The Bills contain measures to ensure that superannuation providers remit, to the Commissioner of Taxation, superannuation paid on behalf of temporary residents.
Legislative Update
Tax Laws Amendment (2008 Measures No 3) Bill 2008 received Royal Assent on the 20.9.08 and becomes Act No 91 of 2008.
On the 24.9.08 the Tax Laws Amendment (Medicare Levy Surcharge Thresholds) Bill 2008 was negatived in the Senate. The Bill had proposed to increase the Medicare levy surcharge thresholds.
As a consequence, the Government has introduced the Tax Laws Amendment (Medicare Levy Surcharge Thresholds) Bill (No 2) 2008 to attempt to implement a negotiated package that will meet Senate demands. The major changes are that the threshold for singles will be raised to $75,000 instead of $100,000 as in the previous Bill.The International Tax Agreements Amendment Bill (No 2) 2008 passed the House of Representatives on the 24.9.08 without amendment and now moves to the Senate.
Progress of Legislation
As at 26.9.08
|
Bill |
Explanatory Memorandum |
Intro House |
Passed House |
Intro Senate |
Passed Senate |
Date of Royal assent / Act Number |
Description |
|
Tax Laws Amendment (Medicare Levy Surcharge Thresholds) Bill 2008 |
27.5.08 |
28.5.08 |
16.6.08 |
24.9.08 |
|
Medicare Levy Thresholds | |
|
29.3.08 |
5.6.08 |
16.6.08 |
1.9.08 |
20.9.08/91 |
Rights issues, GST Refunds | ||
|
26.6.08 |
17.9.08 |
|
|
|
Capital Gains Tax, Family Trust Changes | ||
|
International Tax Agreements Amendment Bill (No 1) Bill 2008 |
27.8.08 |
15.9.08 |
16.9.08 |
18.9.08
|
|
New Treaty with Japan | |
|
27.8.08 |
|
|
|
|
Removes Tax Deductibility of Political Donations, GST | ||
|
17.9.08 |
24.9.08 |
|
|
|
Introduces a Protocol with South Africa | ||
|
25.9.08 |
|
|
|
|
GST, Thin Cap, Division 6C, Definition of "Otherwise Deductible, Exemption of Interest Withholding, | ||
|
25.9.08 |
|
|
|
Tax Offsets for Education Expenses | |||
|
Temporary Residents' Superannuation Legislation Amendment Bill 2008, |
25.9.08 |
|
|
|
|
Payment of Superannuation on Behalf of Temporary Visa Holders | |
|
Superannuation (Departing Australia Superannuation Payments Tax) Amendment Bill 2008 |
25.9.08 |
|
|
|
|
Payment of Superannuation on Behalf of Temporary Visa Holders | |
|
Tax Laws Amendment (Medicare Levy Surcharge Thresholds) Bill (No 2) 2008 |
25.9.08 |
|
|
|
|
Medicare Levy Thresholds |