- [202410] Statement of account usage and delivery preference [NEW]
- [202409] Attribution of risk weighted assets for thin capitalisation (foreign banks) [NEW]
- [202408] Inbound related party financing by private groups in the property and construction industry [NEW]
- [202405] Plug-in hybrid electric vehicles – valuing fuel [NEW]
- [202404] Modernising PAYG instalment systems for small businesses with business accounting software [NEW]
- [202403] Embedding value-added macro data into natural digital systems [NEW]
- [202401] Multinational Tax Integrity – strengthening Australia’s interest limitation (thin capitalisation) rules [UPDATED]
- [202329] Capital raised for the purpose of funding franked distributions
- [202323] Division 7A guidance within software [UPDATED]
- [202322] Sharing Economy Reporting Regime Phase 2
- [202316] Increasing the payment frequency of superannuation guarantee
- [202314] Right time tax payments and reporting
- [202313] Preventing errors and mistakes through small business software
- [202307] Implementation of a global minimum tax and domestic minimum tax [UPDATED]
- [202305] Client agent linking
Registered |
April 2024 |
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Expected completion of consultation |
May 2024 |
Consultation status |
Targeted consultation is underway. |
Consultation purpose |
To seek feedback on the frequency, usefulness, and preferred delivery channel of the ATO statement of account. |
Description |
The ATO issues statements of account for a variety of reasons using different correspondence channels (paper and electronic) and is reviewing options to reduce the frequency of automated statements of account. The ATO is consulting with taxpayers and their representatives to obtain feedback on:
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Who we are consulting |
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Consultation lead |
Peter Moore, Strategy and Support |
Registered |
March 2024 |
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Expected completion of consultation |
September 2024 |
Consultation status |
Targeted consultation is underway. |
Consultation purpose |
To seek feedback on the ATO’s proposed view on the appropriate attribution of risk weighted assets to branches for the purposes of applying the thin capitalisation rules for inward investing entities (ADI). |
Description |
Foreign banks that conduct their banking business in Australia through branch(es) are subject to Australia’s thin capitalisation rules. The rules require a foreign bank to allocate a minimum amount of equity capital to its branch. Typically, foreign banks use the safe harbour rule to work out their minimum capital amount. The rule is based on ensuring there is sufficient equity capital funding that part of the risk-weighted assets of the bank that is attributable to its branch. The ATO does not currently have a published view on how to determine that part of the risk-weighted assets attributable to a branch. Feedback will assist in the development of an ATO view on the topic with the aim of providing certainty and a consistent industry approach.
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Who we are consulting |
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Consultation lead |
Johanna Tang, Public Groups |
Registered |
March 2024 |
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Expected completion of consultation |
April 2024 |
Consultation status |
Targeted consultation is underway. |
Consultation purpose |
To seek feedback on proposed website guidance and examples relating to inbound related party financing by private groups in the property and construction industry. |
Description |
The ATO is seeking to publish website guidance relating to inbound related party financing by private groups in the property and construction industry with accompanying examples on the ATO Legal Database.
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Who we are consulting |
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Consultation lead |
Lynette Purcell, Private Wealth |
Registered |
February 2024 |
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Expected completion of consultation |
October 2024 |
Consultation status |
Consultation is underway. |
Consultation purpose |
To explore possible valuation methodologies for both electricity and petrol expenses of a plug-in hybrid electric vehicle (PHEV). |
Description |
Practical compliance guideline PCG 2024/2 Electric vehicle home charging rate - calculating electricity costs when a vehicle is charged at an employee's or individual's home provides a methodology for calculating electric vehicle home charging expenses. However, the guideline does not apply to PHEVs, which use a mix of fuels (electricity and petrol) to power the vehicle. The ATO will consult with key tax and electric vehicle experts on whether there is a possible valuation methodology, that provides a reasonable basis to split the kilometres driven fuelled by electricity or petrol for a PHEV.
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Who we are consulting |
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Consultation lead |
Mark East, Superannuation and Employer Obligations |
Registered |
February 2024 |
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Expected completion of consultation |
December 2024 |
Consultation status |
Consultation is underway. |
Consultation purpose |
To explore opportunities to help small businesses calculate their pay as you go (PAYG) instalments based on current financial performance extracted from business accounting software. |
Description |
The Modernisation of PAYG instalment systems measure was announced by the government in March 2022 in the Budget 2022-23 (PDF 3.83MB)This link will download a file. Under the measure, companies can choose to have their PAYG instalments calculated based on current financial performance, extracted from business accounting software, with some tax adjustments. The intent is to improve alignment between PAYG instalment liabilities and profitability, and support companies in managing cash flows. Small businesses can use software to manage their business operations and meet their tax obligations. The ATO is exploring how data within a small business’s natural digital accounting system could be leveraged to enable the calculation of PAYG instalments based on current financial performance, without the need for legislative change. This is part of Improve small business tax performance, one of the key focus areas in the ATO corporate plan 2023-24. The ATO is collaborating with partners to build a digital-first tax ecosystem to enable seamless tax reporting from business source systems.
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Who we are consulting |
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Consultation lead |
Michael Morton, Small Business |
Registered |
February 2024 |
Consultation status |
Consultation is underway. |
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Consultation purpose |
To understand how, and what types of, ATO macro data could be made available to small businesses to help improve their tax performance. |
Description |
Small businesses use third-party software, for example accounting software, to manage their business operations, understand and track their financial performance, and meet their tax obligations on time and in full. The ATO is currently exploring the feasibility of embedding certain macro data and information into small business’ natural digital systems and software. This could include:
This could assist small businesses and their advisers to:
This is part of Improve small business tax performance, one of the key focus areas in the ATO corporate plan 2023-24. The ATO is collaborating with key stakeholders to build a digital-first tax ecosystem to enable small businesses to better understand their comparative tax performance and identify potential errors or tax risks prior to lodgment. This will help streamline the tax experience and make it easier for small businesses to comply with their obligations.
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Who we are consulting |
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Consultation lead |
Michael Morton, Small Business |
Registered |
November 2023 |
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Expected completion of consultation |
June 2024 |
Consultation status |
Feedback received on the Consultation paper - Capital raised for the purpose of funding franked distributions, which closed on 16 February 2024, is being considered. |
Consultation purpose |
To seek feedback on public advice and guidance needs for the new integrity measure addressing franked distributions funded by capital raisings. |
Description |
A new integrity measure that prevents certain distributions funded by capital raising from being frankable was recently enacted through amendments contained in the Treasury Laws Amendment (2023 Measures No. 1) Act 2023. The ATO is seeking feedback on whether there are priority issues where public advice and guidance is needed to help entities understand how the new law addressing franked distributions funded by capital raising applies to their circumstances.
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Who we are consulting |
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Consultation lead |
Virginia Gogan, Public Groups |
Registered |
October 2023 |
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Expected completion of consultation |
October 2024 |
Consultation status |
Consultation is underway. |
Consultation purpose |
To seek insights from digital service providers to inform the design of Division 7A guidance within software products. |
Description |
Small business can use software to manage their business operations and tax and superannuation obligations. Division 7A is contained in the Income Tax Assessment Act 1936 and is a complex area of the tax law. Statistically, Division 7A represents a significant part of the tax gap and is an out of tolerance risk. The ATO has observed a general lack of awareness and understanding of Division 7A by small businesses and their registered tax agents which contributes to this risk. Digital service providers build software that supports business in maintaining daily operations while meeting tax and superannuation obligations. Guidance prompts and nudges could be embedded within software products at different touchpoints during a typical Division 7A lifecycle. These prompts would seek to raise awareness of potential Division 7A risks and issues as they arise. Guidance would help small businesses and their registered tax agents take corrective action. Consultation with digital service providers will ensure Division 7A guidance within software products is viable and adds value for clients whilst also achieving ATO objectives.
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Who we are consulting |
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Consultation lead |
Michael Morton, Small Business |
Registered |
August 2023 |
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Expected completion of consultation |
August 2024 |
Consultation status |
Targeted consultation is underway. |
Consultation purpose |
To seek feedback regarding implementation of the next phase (Tranche 2) of the Sharing Economy Reporting Regime including:
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Description |
Schedule 2 of the Treasury Laws Amendment (2022 Measures No. 2) Act 2022External Link requires operators of electronic distribution platforms (EDPs) to report information to the ATO on transactions relating to supplies made through the platform. This measure implements a recommendation of the report of the Black Economy Taskforce. Under the measure, EDP operators are required to report transactions that occur on or after:
The first phase (Tranche 1) of consultation, [202230] Sharing Economy Reporting Regime, considered EDP reporting transactions related to a supply of taxi service (including ride-sourcing) or short term accommodation. Consultation for Tranche 2 will include all other reportable transactions for all other industries.
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Who we are consulting |
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Consultation lead |
Vanessa Kelly, Small Business Experience |
Registered |
May 2023 |
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Expected completion of consultation |
August 2024 |
Consultation status |
Targeted consultation is underway. |
Consultation purpose |
To understand the costs and benefits that ‘right time’ tax payments and reporting might have on small business. |
Description |
Understanding the costs and benefits of ‘right time’ (reducing the time between taxable events, their reporting and any payment) tax payments and reporting is part of Improve small business tax performance and participation by collaborating with partners to build a digital first tax ecosystem, enabling seamless tax reporting from business source systems – one of the key focus areas in the ATO corporate plan 2023–24. The ATO is exploring the cost and benefits of ‘right time’ (more regular) GST or pay-as-you-go withholding (PAYGW) reporting and/or payments, through the following pilots:
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Who we are consulting |
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Consultation lead |
Michael Morton, Small Business |
Registered |
May 2023 |
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Expected completion of consultation |
June 2024 |
Consultation status |
Targeted consultation is underway. |
Consultation purpose |
To explore opportunities to prevent errors and mistakes through software that small businesses use. |
Description |
Small business can use software to manage their business operations and tax obligations. The ATO is currently exploring how messaging and prompts could be embedded into software to assist tax professionals and small businesses identify issues that may otherwise be overlooked or not properly understood and help them get their tax right prior to lodgment. This will include:
This is part of the Improve small business tax performance initiative. The ATO is collaborating with partners to build a digital first tax ecosystem, enabling seamless tax reporting from business source systems – one of the key focus areas in the ATO corporate plan 2023–24.
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Who we are consulting |
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Consultation lead |
Michael Morton, Small Business |
Registered |
March 2023 |
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Expected completion of consultation |
June 2024 |
Consultation status |
Targeted consultation is underway. |
Consultation purpose |
To seek feedback on administrative, compliance and systems impacts with the Implementation of a global minimum tax and a domestic minimum tax measure. |
Description |
The Implementation of a global minimum tax and a domestic minimum tax measure was announced by the government in May 2023 in the Budget 2023–24 (PDF, 2.4MB)This link will download a file. The government will implement key aspects of Pillar Two of the OECD/G20 Two-Pillar Solution to address the tax challenges arising from digitalisation of the economy:
On 21 March 2024, Treasury released the exposure draft materials to implement a global and domestic minimum tax. Treasury is seeking stakeholders’ views on:
Comments can be submitted to Treasury until 16 April 2024 on the primary legislationExternal Link and discussion paper and until 16 May 2024 on the subordinate legislationExternal Link.
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Who we are consulting |
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Consultation lead |
Adam Peel, International, Support and Programs |