News on Enterprise tax plan – reducing the corporate tax rate

 

The Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017 was introduced to the House of Representatives on 18 October 2017 but is not yet law. This Bill proposes to remove the ‘carrying on a business’ test from the 2017–18 income year onwards and introduces a passive income test in determining which companies are subject to the lower corporate tax rate.

For more information see the Reducing the corporate tax rate new legislation page.

 

2017-18 Mid-Year Economic and Fiscal Outlook (MYEFO)

 

The Government released the 2017–18 MYEFO on 18 December 2017, with several proposed changes to tax and superannuation laws. Below is a list of the announced measures, including start dates (as announced by Government, but dependent on passage of legislative amendments through parliament). You can access the papers here: budget.gov.au

 

List of announced measures

Measure name

Proposed start date

Pacific labour scheme

1 July 2018

Seasonal worker programme – improving take up and streamlining administration

1 July 2018

Capital gains tax – main residence exemption – application to temporary residents

Various

Expanding tax incentives for investments in affordable housing

1 January 2018

Personal income tax – exemption of JobSeeker Payment for newly bereaved recipients

20 March 2020

Personal income tax – exemption for Australian participants of British nuclear tests and veterans of the British Commonwealth Occupation Force

2017-18

Company tax – passive investment companies excluded from lower company tax rate

2017-18 income year

Single Touch Payroll – deliver a tax incentive for small business to invest in standard business reporting enabled software – reversal

N/A

Superannuation – closing salary sacrifice loopholes

From 1 July 2018

Superannuation guarantee integrity package – modernising payroll and superannuation fund reporting

2018-19 financial year (transitional)/1 July 2019 (full implementation)

Superannuation guarantee integrity package – more effective collection of superannuation guarantee liabilities

1 July 2018

Superannuation guarantee integrity package – reversal of 2014-15 MYEFO measure – Superannuation guarantee charge

N/A

Superannuation guarantee integrity package – stronger penalties for superannuation guarantee

TBA

Superannuation guarantee integrity package – superannuation guarantee compliance taskforce

N/A

Additional foreign investment amendments

TBA

Debt-Equity rules – allowing debt tax treatment for tier 2 capital issued by customer-owned banks

Day after registration of amending regulation

Tax integrity – Extension of the OECD hybrid mismatch rules

Six months after royal assent

International tax – adoption of the multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting

Various

Reducing Pressure on Housing Affordability – Affordable housing through MITs – modification

1 July 2017

Technical amendments to venture capital and innovation programs

Various

GST on low value imported goods – modification

1 July 2018

Improving the integrity of GST on property transactions – transitional arrangements

As a transitional arrangement, contracts signed before 1 July 2018 and settled before 1 July 2020 are to be excluded

Wine equalisation tax rebate tightened eligibility – transitional rules for wine producers

1 July 2018

Deductible gift recipient reform – strengthening governance and integrity and reducing complexity

Various

Extending deductible gift recipient eligibility to organisations promoting indigenous languages

TBA

Philanthropy – updates to the list of specifically listed deductible gift recipients

Various

Philanthropy – managing the risks of overseas philanthropy

TBA

Indirect tax concessions scheme – diplomatic and consular concessions

TBA

Heavy vehicle road reforms – next steps

TBA

Higher education reforms – revised implementation

Various

Junior Minerals Exploration Incentive Scheme – establishment

2017-18

National business simplification initiative – modernising business registers

N/A

VET Student Loans – separation from the Higher Education Loan Program

1 July 2019