Law design and maintenance
This year we assisted Treasury with the design of 30 new tax and superannuation bills introduced into parliament, along with a range of new regulations. These included legislation relating to:
- minerals resource rent tax and an extended petroleum resource rent tax
- major superannuation reforms
- self-assessment regime for indirect taxes
- changes to the taxation of alternative fuels
- private health insurance reforms
- tax cuts as part of the household assistance package.
We worked with Treasury on legislation to implement 2011-12 Budget measures, including changes to the taxation of certain employment termination payments, changes to the Medicare levy thresholds and changes to the tax treatment of living-away-from-home allowances.
A number of law changes were made during the year whose commencement dates were prior to their dates of enactment. We provided guidance to taxpayers on the most appropriate course of action - for example, where they need to self-assess a liability.
For more information, visit www.ato.gov.au
The Tax Issues Entry System (TIES) allows the community to raise issues relating to the care and maintenance of Australia's tax and superannuation systems. During 2011-12, 21 submissions were received, with 12 issues from the current and past financial years being progressed as possible amendments to the law.
Snapshot: Minerals resource rent tax and extended petroleum resource rent tax
The minerals resource rent tax and extended petroleum resource rent tax commenced on 1 July 2012.
We consulted on the design of the administrative systems for these taxes with industry and tax profession representative bodies. Our National Tax Liaison Group (NTLG) Resource Rent Tax (RRT)Sub-committee met regularly to discuss specific issues, while ATO officers participated in and presented at industry and professional conferences on the new resource rent tax arrangements.
We worked with industry representatives and tax professionals to provide early guidance on a range of administration issues such as valuation methodologies, joint ventures, penalties and instalment arrangements. Our early guidance is published on www.ato.gov.au
In the lead up to 1 July 2012, we designed a risk-based compliance strategy, developed our internal capability to administer the new laws, and published guidance and education products to assist industry in the transition to the new arrangements.
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